Aside from wandering around and shopping the outdoor markets , there are few tourist attractions of note right in the town of Otavalo, although the surrounding towns, villages, and countryside are ripe with opportunities for sightseeing, shopping, and adventure activities.
In Town
If you tire of the hustle, bustle, and commerce of the artisans market on the Plaza de los Ponchos, head for the more peaceful Parque Bolívar. You can grab a bench in the gardens here, or venture into the city's main Catholic church. Although very plain from the outside, the church features a small but ornate gold-leaf and gold-painted altar, as well as a pretty tiled ceiling.
If you want to learn about the process of weaving used by the artisans in and around Otavalo, head to the Museo de Tejidos El Obraje (tel. 06/2920-261), which was set up by Don Luis Maldonado and his wife, and has exhibits about the local weaving tools and techniques, as well as displays on the daily lives of the Otavaleños. This little museum is located on Calle Sucre 608, near Olmedo. It is open Monday to Saturday from 9am to noon and 3 to 6pm. Admission is $2 (£1.10). They also offer classes on weaving.
On the campus of the University of Otavalo, just north of town across the Pan-American Highway, is the Instituto Otavaleño de Antropología (Otavalo Institute of Anthropology; tel. 06/2920-461), which has a modest collection of archaeological relics and finds. But I recommend that you spend your precious time enjoying the other sites and activities around town, and get your archaeological fix at the Museo Nacional del Banco Central in Quito. The institute is open Tuesday through Friday from 9am to noon and 2:30 to 6pm, and on Saturday from 9am to noon. Admission is free.
Otavalo Market -- Because there are often several, simultaneous markets taking place, it's probably most accurate to talk about Otavalo's "markets" (not "market"). The artisans market presents some of the best bargains in Ecuador and, just as importantly, some of the best people-watching. On Saturday, almost the entire city becomes one big shopping area, and itinerant vendors set up stalls on every available speck of sidewalk and alleyway. It's not just for tourists, either; Ecuadorians come here from miles away, to peddle and buy high-quality, handmade goods. The Otavaleños are extremely friendly and helpful, and they wear beautiful traditional clothing. Overall, this is one of the most colorful markets in Ecuador, and the handicrafts are of excellent quality.
Some of the most interesting buys available here include handmade alpaca sweaters, soft alpaca scarves, wool fedoras, colorful straw bags, hand-embroidered blouses, ceramics, tapestries, fresh pineapple, and llamas. Yes, llamas. Early in the morning on Saturday, there is an animal market, where you can exchange your cow for a llama or simply buy a dozen chickadees. To get to the animal market from the main plaza, walk down Sucre or Bolívar to Morales. Take a right on Morales and walk straight for about 5 blocks and cross the bridge. Turn right after the bridge and then take a left at the next main street. The animal market is about a half-block up. Get here early (around 7 or 8am) because the market closes down at 10am. There is also an excellent fresh-produce market in Plaza 24 de Mayo.
Though Saturday is market day, there is a relatively complete market every day in Plaza de los Ponchos. Whenever you visit, you'll find the same great crafts on sale here, and the same beautiful people selling them. Tip: I find that the Saturday market is a bit overwhelming; in fact, I prefer coming on a weekday, when I don't have to visit millions of stands to be sure that I have found the perfect bag or hat. You might also be able to bargain better on an off-day, since fewer tourists mean less demand, and sellers are often a bit more flexible if they really want to make a sale.
Shoppers should expect to do some bargaining, but I've found that prices will only drop a dollar or two (or 20% at most). Don't worry -- the asking price is usually quite low, and everything here is already a bargain.
