This Andean market town, 2,500 meters above sea level, has South America's largest indigenous craft fair every Saturday. Local weavers sell textiles and crafts.
Otavalo sits at 2,532 meters (8,307 ft) in Ecuador's northern Andes, surrounded by the Imbabura, Cotacachi, and Mojanda volcanoes. In the Plaza de los Ponchos market, you'll find alpaca wool ponchos, hand-knotted rugs, and silver filigree jewelry. Beyond the market, you can trek around Cuicocha's deep blue crater lake, walk through pine forests to the Peguche waterfall, or watch woodcarvers shape figures in San Antonio de Ibarra.
Getting to Otavalo from Quito
Buses depart every 30 minutes from Quito's Carcelén terminal to Otavalo, taking about 2 hours along the Pan-American Highway through mountain passes. Take a morning bus to arrive by 9:00 AM for peak market activity. Local taxis can drive you to nearby villages and hiking trailheads.
Plaza de los Ponchos Market
The market fills the central plaza, sheltered by distinctive mushroom-shaped concrete umbrellas designed by Dutch architect Tonny Zwollo in 1970. While vendors sell daily, Saturday brings over 1,000 sellers. Browse through stalls of hand-woven blankets, embroidered shirts, tagua nut bracelets, pan flutes, and leather bags. Visit between 7:00 and 10:00 AM when local vendors set up their stalls and the morning light illuminates the textiles' colors.
Hiking Around Otavalo
The Cuicocha Lake circuit extends 14 kilometers at 3,246 meters altitude, with clear views of the deep blue crater lake and its two central islands. Pack warm layers - temperatures can drop quickly. At Mojanda Lakes, three volcanic crater lakes sit above 3,700 meters, where you'll need 6-7 hours for the full circuit. The Peguche Waterfall trail winds through eucalyptus groves for 1 kilometer to reach the 18-meter cascade.
Local Dress and Festivals
Many Otavaleño residents wear their distinctive clothing daily: women in white embroidered blouses with detailed flowers and geometric patterns, paired with dark pleated skirts. Men often wear white pants, ponchos, and keep their hair in a single long braid. During the Inti Raymi festival each June, musicians play Andean flutes and drums while dancers fill the streets to mark the winter solstice.
Craft Villages
Each surrounding village specializes in specific crafts. In Cotacachi, 20 minutes away by bus, leather workshops line Calle 10 de Agosto, where artisans make jackets, bags, and boots. San Antonio de Ibarra's woodcarvers transform cedar and walnut into religious figures and furniture. In Ilumán, local healers perform limpia ceremonies using herbs and eggs to cleanse negative energy.
Local Food Scene
At the covered 24 de Mayo Market, you can eat hornado (roasted pork with crispy skin) and locro de papas (creamy potato soup with avocado and cheese). Street vendors around Plaza de los Ponchos sell chochos (lupini beans) with toasted corn, and hot empanadas filled with cheese or meat. Restaurants near the plaza serve both local dishes and international meals.
