Otavalo is one of the most visited towns in Ecuador, and for good reason. Situated in the Andes about two hours north of Quito by bus, it is home to the largest and most famous indigenous market in South America. The Saturday market — and a smaller daily one at the Plaza de los Ponchos — draws vendors and buyers from across the region selling textiles, weavings, jewelry, and crafts. Bargaining is expected and the quality is high.
The Otavaleños, the indigenous people of the area, are known throughout South America as skilled weavers and traders. Many travel as far as Colombia, Argentina, and Europe selling their goods, which explains why you will spot them in unlikely places across the continent.
Beyond the market, the surrounding countryside repays exploration. Laguna Cuicocha, a crater lake to the west, has a good hiking trail around its rim. The waterfall at Peguche, a short walk from town, is a peaceful spot and sacred to the local community.