Famous for its weaving and music culture, the Otavalo people are one of the most prosperous in Ecuador. Nowadays we find their handicrafts and music all over Ecuador and the world. The town of Otavalo is the heart of their culture and at the marketplace we will find all possible souvenirs at low prices. On Saturdays there is also an animal market taking place just outside town. Be part and witness the trading in between the Otavalo indigenous people.
A two-hour drive north of Quito through the Sierras takes you to Otavalo, the largest Handicraft Market in South America.
The market serves as a gathering place for both trade and social activity. The ‘official’ market day is Saturday when people from all over the country come to sell produce, livestock, and handicrafts. Bargains on sweaters, ponchos, blankets, rugs, jewelry, pottery and hammocks are to be had every day. Ask for a “descuento” while doing business for anything from guinea pigs to woolen sweaters.
On Saturday mornings the market begins early as local villagers arrive in town with fresh produce and animals to trade and sell. Early risers can see the trading of cattle, pigs, chickens, and guinea pigs along the Pan American highway west of town between 6am-8am. The handicraft market is the highlight for most tourists. 
Known for being the largest handicraft market in South America. Visitors are able to bargain for carpets, blouses, vests, jackets, hammocks, ceramics, paintings, jewelry, hats, musical instruments as well as a variety of other locally made goods. Haggling for prices is expected and part of the fun. Never accept the original price offered and expect to pay approximately 1/3 less. A smaller version of the market is offered everyday of the week primarily for tourists.
In the surroundings of Otavalo you could visit the town of Cotacachi, famous for its leather products. Clothing, bags, belts, wallets, sandals, in Cotacachi we’ll find the best variety at the lowest prices.
One of the hotels worth visiting close to Otavalo is Hotel-Hacienda Pinsaquí. To learn more about the history of this place we recommend to read the interesting book written by Sue Appleby.