Rows of blue and white market awnings filling a square in a town of low buildings, with green hills and mountains behind under a grey sky

Quito & the Northern Andes, Ecuador

Otavalo

The craft market on the Plaza de los Ponchos in Otavalo. (Arabsalam / Wikimedia Commons · CC BY 4.0)

A highland market town in Imbabura province at about 2,530 metres, ringed by the Imbabura, Cotacachi and Mojanda volcanoes. Home of the Kichwa Otavalo people, famous weavers and traders, it is known above all for the craft market on the Plaza de los Ponchos, biggest on Saturdays, and for the lakes, waterfalls and Indigenous villages around it.

Neighbourhoods

  • Plaza de los Ponchos and the market streets
    • First-time visitors
    • Markets
    • Shopping for crafts

    The part of the centre around the craft market, with its mushroom-shaped concrete umbrellas designed in 1970. On Saturdays stalls spill out across almost a third of the town; on other days the square is quieter and many of the shops and hostels stay open.

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  • Parque Bolívar and the centre
    • Historic district
    • Local life

    The central square, also called Parque Central, with the town hall and the church of San Luis and its octagonal clock tower. The streets around it hold banks, cafés, the bus terminal a few blocks away and the everyday food market.

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  • Peguche and the villages
    • Quiet stays
    • Walking
    • Weaving workshops

    Kichwa villages such as Peguche and Ilumán just outside town, reached by short bus or taxi rides, where weavers work and the pace is slower. Peguche is the setting of the Pawkar Raymi celebrations and has a waterfall nearby.

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Things to do

In town

  • Plaza de los Ponchos craft marketmarket

    Otavalo's famous market of textiles, blankets, tagua-nut jewellery, musical instruments and leather goods, open all week and at its biggest on Saturdays; many goods are now resold rather than handmade.

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  • Mercado 24 de Mayomarket

    The town's largest food market, open all week, with produce, meat and cooked-food stalls used by local families.

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  • Museo Viviente Otavalangomuseum

    A living museum in the old San Pedro textile factory, where Otavaleños once worked in harsh conditions, now run by the community with craftspeople weaving and farming.

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  • Church of San Luislandmark

    The church on Parque Bolívar, first built in 1676–79, destroyed by the earthquake of 1868 and rebuilt in the 1880s with three naves and an octagonal clock tower.

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Lakes and volcanoes

  • Peguche waterfallattraction

    An 18-metre waterfall about 3 km from town, near the weaving village of Peguche.

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  • Lake San Pabloattraction

    A lake about 3.5 km south-east of the centre at the foot of Imbabura.

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  • Cuicochaviewpoint

    A 3 km-wide caldera at the foot of Cotacachi volcano, about 12 km north-west, holding a crater lake with two forested lava-dome islands; a walking path gives views over the lake and the valley.

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  • Lagunas de Mojandatrail

    Three crater lakes in the caldera of the inactive Mojanda volcano south of town, set in high páramo grassland.

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  • Imbaburaviewpoint

    The volcano that dominates the town's skyline, inactive for about 7,500 years, with fertile slopes and extensively farmed land around it.

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Short trips from the town

  • Cotacachiattraction

    A small town to the north, the centre of Ecuador's leather industry, its streets lined with leather shops.

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Seasonal events

  • Pawkar RaymiFebruary or March, at Carnival

    A celebration held in Peguche and the villages around it, once known simply as Carnival.

  • Inti RaymiJune, around the solstice

    The Indigenous festival of the sun around the June solstice, when the music and dancing of Otavalo and the surrounding villages fill the streets.

Eat and drink

Long-standing places and food districts in Otavalo. Hours, ratings and directions come from your maps app, always current.

Food districts and markets

  • Mercado 24 de Mayomarket

    The main food market, with stalls serving cheap cooked meals alongside fruit, vegetables and meat.

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  • Food stalls around the Plaza de los Ponchosmarket

    Stalls around the craft market serving highland dishes to traders and shoppers, busiest on Saturdays.

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Experience Otavalo

History

The valley was home to Indigenous peoples — the Sarance and others — long before the Inca. The Inca, under Túpac Yupanqui, pushed north towards Atuntaqui, Cayambe and Otavalo and met hard resistance before they could take control. The Spanish chroniclers of 1534 name Otapalu as a powerful chief, and the colonial settlement was begun by the first encomendero in the same year, on the site of the Indigenous town that gave it its name.

Under Spanish rule Otavalo was one of the most important towns of the northern Audiencia, until the creation of Imbabura province with Ibarra as its capital. A description of 1582 lists seven villages in its district, among them Sarance and San Pablo by the lake. In 1673 the town was moved to its present site. Its farming and crafts made it a source of wealth; one later factory, San Pedro, where Otavaleños worked in harsh conditions for generations, is now the community's living museum.

Otavalo became a canton in 1824. In the early hours of 16 August 1868 an earthquake devastated the town, leaving only a bridge at Peguche, a mill and a bathhouse standing, and its churches had to be rebuilt. In the 20th century the market grew from a local exchange into one of the best known in South America; the Plaza de los Ponchos was built in 1970, and tourism became the town's main industry. In 2015 the railway line to Ibarra, closed around 1980, was reopened for tourist trains.

Culture & Customs

The Kichwa Otavalo people are famous for weaving, usually in wool, and for their success as traders, selling textiles and crafts around the world. Their dress is distinctive. Otavaleña women wear white embroidered blouses with flared lace sleeves, dark over-skirts and white under-skirts, with many strands of gold beads at the neck and coral beads wound round the wrists; men wear white trousers and dark blue ponchos.

Music is just as important. Otavalo's musicians travel widely, and groups from the town have had commercial success with Andean music abroad. At home, music is at the heart of Inti Raymi, the festival of the sun around the June solstice, when dancers and bands from the surrounding communities fill the streets. In Peguche and nearby villages Pawkar Raymi has been revived in recent decades in place of what was simply called Carnival. The fiesta of the yamor, built around a chicha of seven kinds of maize, began as a local gathering in the early 1950s and has grown into the town's main fiesta.

Crafts are tied to particular places around the town: leather in Cotacachi, woodcarving in San Antonio, weaving in Peguche and the other Otavalo villages.

Daily Life

According to the 2022 census, Otavalo had about 41,700 inhabitants, most of them Otavalo Kichwa. The town was historically a centre of farming communities on the rich volcanic soils of the valley, and agriculture is still one of its main activities, but tourism and the craft trade have become the economic mainstays, and Otavalo has many more hotels, hostels and tour operators than other towns of similar size.

The week turns on Saturday, when the market takes over almost a third of the town and buses from Quito and the villages fill up. On other days the Plaza de los Ponchos is quieter, and local life centres on the Mercado 24 de Mayo, the banks and offices around Parque Bolívar, and the bus terminal. Many Otavalos travel around the world to sell their crafts or play in Andean music groups.

Change in the market is a running concern: many of the goods sold there are now mass-produced in nearby factories and sold by middlemen rather than made by hand, and visitors who want handmade work are pointed towards the villages and the community museum.

Food

Otavalo eats from the highland pantry of maize, potatoes and pork. In the markets and at the food stalls around the Plaza de los Ponchos, hornado, whole roast pig, is served with mote hominy and llapingachos, fried potato-and-cheese patties, while fritada is pork simmered and then fried in its own fat. Locro de papa, a thick potato soup with cheese, is eaten across the highlands, and the almuerzo set lunch is the everyday meal.

The town's own drink is the chicha del yamor, a fermented drink made from seven kinds of maize — yellow, white, black, chulpi, popping maize, morocho and jora, the germinated maize — that are dried, ground and cooked together. It is linked to the fiesta that bears its name, and the word yamor is thought to have been brought to northern Ecuador by the Inca.

The Mercado 24 de Mayo is the place to see what local families buy and eat, with stalls of produce, meat and cooked meals. Nearby towns add their own specialities: Ibarra, a short bus ride north, is famous for helados de paila, sorbets churned by hand in bronze pans over ice.

Planning tools

Budget

Otavalo is inexpensive. Because tourism is its main industry, it has many more hostels, hotels and tour operators than most towns its size, so rooms are plentiful. Buses to the surrounding villages are very cheap; taxis to the lakes are the main extra cost.

Daily Budget Midrange
USD 60–120 (hotel or hacienda, sit-down dinners, taxis to the lakes or a guided day trip)
Daily Budget Shoestring
USD 25–45 (hostel bed, market meals, local buses)

Bargaining is accepted at the market, but prices are already low; buying in the villages where crafts are made puts more money in the makers' hands.

Best Time to Visit

Any Saturday for the full market. June brings Inti Raymi and falls in the highlands' drier season, from June to September, which also gives the clearest views of the volcanoes and the best walking around the lakes. February or March brings Pawkar Raymi in Peguche.

Suggested Number of Days

One or two days are enough for the town and the market, ideally including a Saturday. Allow three or four to include the lakes, the villages and neighbouring craft towns. Many visitors come as a day trip from Quito, but an overnight stay sees the market before the crowds arrive.

First Visit
1–2 days
With Surroundings
3–4 days

Transportation

The town is small and walkable. Buses to nearby villages and towns leave frequently from the main terminal, and taxis are cheap for Peguche and the lakes; the Mojanda lakes are reached by taxi or on foot.

Arrange a return time with taxi drivers when going to the more remote lakes.

Airport & Station Connections

Otavalo is about two hours north of Quito on the Panamerican Highway. Buses leave from Quito's northern Carcelén terminal and stop at the small terminal in town; Quito's airport is the usual arrival point, and a taxi straight from the airport avoids going into the city. Buses also run frequently to Ibarra, a short ride to the north.

Walkability

The centre is compact and flat, and the market, Parque Bolívar, the food market and the bus terminal are all a few blocks apart. Peguche waterfall is within walking distance; the other lakes and villages need a bus or taxi.

Safety

Ecuador's security has deteriorated sharply since about 2019, with a surge in organised crime, gang violence, and prison unrest, especially in Guayaquil, Esmeraldas, Manta, and the northern border with Colombia. Otavalo is on the highland tourist route, which remains much calmer than the coastal cities. The crowded Saturday market is the place where pickpockets and bag-snatchers work.

Keep bags closed and in front in the market crowds, and use registered taxis after dark. Check current official travel advice before travelling.

Climate

A mild highland climate averaging about 16°C, with temperatures ranging between about 12 and 25°C. Days are spring-like and nights cool all year, with a drier and a wetter period.

Summer
the drier season, June to September: sunny days reaching the low to mid 20s °C, with cool nights and wind
Winter
the wetter months, October to May: afternoon rain, with nights down to about 12°C

Local Customs

Otavalo is a Kichwa town, and traditional dress is everyday wear: women in white embroidered blouses with lace sleeves, dark skirts and strands of gold beads; men in white trousers and dark ponchos. Greetings are 'buenos días' or 'buenas tardes', and older people are addressed as 'usted'.

Ask before photographing people, especially in traditional dress or at festivals. Many restaurants add a service charge, so a further tip is optional.

Common Payment Methods

The currency is the US dollar. Market traders, buses and village guesthouses want cash, in small notes; hotels and some shops take cards. Damaged notes are refused. There are ATMs in the centre.