For many, Otavalo is nothing more than a day trip from the Ecuadorian capital Quito, from which travelers flock to explore the famous Otavalo market. For those in the know, this bustling little town at the foot of the Imbabura Volcano makes for a great first stop in Ecuador after leaving Colombia.

The town is something of an oddity. About 60% of the population belongs to the indigenous Kichwa culture, one of the wealthiest ethnic groups in Ecuador. The Kichwa people share a great sense of pride in their heritage. That sense of identity is felt throughout the city, whether in the famous market stalls or the traditional clothing worn by the Otavaleños (men) and Otavaleños (women) of this city. You'd do well to learn a couple of Kichwa phrases to endear yourself with the locals.

In town, the largest open-air handicraft market in South America is the highlight of exploring Otavalo. The barrage of color and activity that spills out from Otavalo's main square into the surrounding streets is a sensual overload. The market can be enjoyed daily, and is open from 9 AM to 5 PM, though Saturdays are best. Once you've explored the market, it's easy to see why it draws tourists from Quito like a moth to a flame. But, the true treasures of Otavalo are found out of town.

Venture out of town, and you can climb towering volcanos, hike around pristine lakes, soak up stunning viewpoints, and take a dip under glacial waterfalls. It's an extraordinary first taste of Ecuador's Andean countryside.

With Otavalo being found at 2,532 meters above sea level, it's also a great place to spend a few days letting your body acclimatize to the altitude before climbing another 300 meters en route to the capital, Quito.

Disclaimer: This article may contain affiliate links, and we may earn a small commission should you use them, for which we are incredibly grateful. However, the recommendations are still our own and intended to advise on the very best experiences Otavalo has to offer.

Explore the Otavalo Market

South America's largest open-air handicraft market more than lives up to its reputation. The endless line of stalls is filled with a dizzying assortment of items woven, crafted, cultivated, and reared by the indigenous Kichwa people.

Not only is the Otavalo market the largest in South America, but it is possibly one of the oldest. The tradition dates back centuries and originates in Pre-Incan times when animals captured from the depths of the Amazon were traded for highland products.

If you're looking for souvenirs from your time wandering the stalls, we recommend a woven scarf or sweater, perhaps even some jewelry; just be prepared to haggle.

Don't sleep on the mouthwatering street food either; you'll be drawn to it anyway.

While the market is open daily, Saturdays are universally regarded as the best. On Saturdays, business starts a little earlier, at 8 AM, with crowds being largely absent until 11 AM, making an early-morning exploration a great activity.

The market is easy to find, centered in Otavalo's main Square — Plaza de Ponchos. What a lot of people don't know is that there is a secondary animal market setting up shop on Saturdays just outside of town.

Veggies and vegans beware, the animal market is not for the faint-hearted. Steel yourself to find an assortment of typical livestock alongside horses, guinea pigs, and other local delicacies.

Parque Simón Bolivar & Santuario del Señor de las Angustias

Ahh, the customary Parque Simón Bolivar, a mainstay of backpackers looking to hunker down and chill out after a day of exploring and adventuring.

In Otavalo, Parque Simon Bolivar is just a couple of blocks from the market, centering around an effigy of Rumiñawi. Rumiñawi was an Incan general who fought against the invading Spanish with strong ties to legends of a lost Incan treasure.

If you spend an hour or two relaxing in and around the square, grab a coffee from Daily Grind. You'll also find the customary church, completed in 1931, Santuario del Señor de las Angustias, and plenty of locals laughing, socializing, and playing traditional instruments around the perimeter of the square.

For those interested in exploring the church, guided tours discussing the church's history, art, and architecture are available. If you'd rather not take the guided tour, the church is open daily, and you're more than welcome to poke your head inside.

Check Out Cascada de peguche

Visiting the 18-meter Peguche Waterfall is one of the best outdoor activities near Otavalo. You can find the waterfall a 45-minute walk from the Otavalo market – you can also catch a taxi or public transport for a small fee and get there and back in 20 minutes. If you walk, exploring the waterfall is a great way to pass a couple of hours when staying in Otavalo.

If you have your adventure hat on, you could easily spend a full day exploring Peguche Waterfall as part of a route that passes the nearby Parque Cóndor, El Lechero viewpoint, and Lago San Pablo; more on those in a bit.

The waterfall is at the heart of a community-run protected park known as Bosque Protector Cascada de Peguche. When you arrive at the park entrance, you can pay a $2 entrance fee at a cabin to your right. While the fee is voluntary, it is customary, with all proceeds going towards local conservation projects.

Once past the park entrance, you'll spend around 15 minutes on a well-marked trail that passes through a eucalyptus tree forest before arriving at the waterfall. While generally pleasant, the path is a tad steep.

The waterfall is considered one of the best in northern Ecuador, comprising several cascading tiers that fall into a pool below. You'll be presented with two paths when you arrive at the waterfall. The path to the left takes you to a viewpoint overlooking the waterfall from above. Meanwhile, the path to the right takes you to a wooden bride and viewing area; it is here that you'll find the best views of the waterfall, though you are likely to get pretty wet.

The waterfall has great cultural importance to the local Kichwa people, who use it for the Inti Raymi – a purification ritual on the Incan solstices of June 24th and December 22nd.

Following the trail to the left up and around Peguche will see you cross a second, smaller waterfall and some caves you can explore.

Following the trail to the right and crossing the bridge will take you to a small indigenous village. In reality, this is likely nothing more than a tourist trap. Still, there are some souvenir shops, several exhibitions, and another small cave system you can explore for an additional $2.

Finally, if you double back on yourself and head back towards the park entrance for 100-ish meters, you'll come across the Peguche hot springs. The hot springs cost a few dollars for a relaxing soak. They are well worth the expense, especially if you're returning to Otavalo after a full day of exploring the Andean countryside.

Stop AT Parque Cóndor

More than a place to gaze at the planet's largest flying bird, the Andean Condor. Visiting Parque Cóndor lets you get up close and personal with everything from eagles and owls to falcons and hawks. Still, the real highlight here is, of course, the Condor, Ecuador's national symbol.

To be clear, Parque Cóndor is not a zoo. It is a rescue and rehabilitation center for animals injured in the wild or mistreated in captivity. It also acts as an education center for the public.

Located four kilometers from Otavalo, Parque Condór is at a vantage point providing beautiful 360º views of the Imbabura and Cotacachi volcanoes and Laguna de San Pablo below.

To get there from town will take about an hour on foot. If, however, you're arriving at the park fresh from a visit to Cascada de Peguche, the walk between the two is about 1.2 kilometers and can be done in under 20 minutes.

If you are visiting Parque Cóndor, there are a few things you need to know. First and foremost, it is only open from 9:30 AM - 5 PM, Wednesdays to Sundays. Second, there is a $5 entrance fee. Third and finally, flight demonstrations only occur twice a day, at 11:30 AM and 3:30 PM, so try to time your visit around those.

Gaze Out From El Lechero Viewpoint

Part famous viewpoint, part sacred tree. El Lechero is a 3-kilometer walk from the Otavalo market; if you arrive at El Lechero from Parque Condor, the distance is 1.5 kilometers.

The sacred tree is central to local mythology, and spiritual ceremonies regularly take place at the site. The legend goes that the tree and Laguna de San Pablo below house the souls of two star-crossed lovers from rival families. Unable to bear being apart, the lovers transformed into the tree and lake to watch over each other for eternity.

As for the view, it's jaw-dropping, cramming the San Pablo lake, Cotacachi and Imbabura volcanoes, Otavalo, and the Fuya Fuya mountains into one spellbinding vista.

Visit Lago de San Pablo

Found 4 kilometers from the center of Otavalo, Lago de San Pablo is a stunning 583-hectare lake at the base of the imposing Imbabura volcano.

A visit to Lago de San Pablo is the perfect way to round off a day of exploring the countryside surrounding Otavalo, following stops at Cascada de Peguche, Parque Cóndor, and the El Lechero viewpoint.

Arriving at the precipice of the lake, head to the Cachiviro Otavalo pier, where you can hire a kayak to explore the lake independently. Alternatively, you can get directions to other activities on the water, such as kitesurfing, motorboat tours, and more. If you're not keen to get out on the water, follow one of the trails circling the lake's perimeter, which you can follow on foot or by renting a bike.

Like many natural landmarks in this part of the world, Lago de San Pablo is considered sacred by the local Kichwa people, to whom the lake is known as Imbakucha or Chicapán. Ask around, and you'll find several myths attached to the ancient origins of the lake.

Volcán Imbabura

The inactive Imbabura stratovolcano is one of the defining features of the Andean countryside surrounding Otavalo. It is revered as a great protector in the local Kichwa culture.

Climbing this volcano, whose peak is 4,610 meters above sea level, is tough, though not technically challenging. The ascent is very steep – at one point, you'll climb 1,450 meters in just five kilometers, and the terrain is varied.

Climbing Imbabura, you'll pass through tall grass, pine forests, paramos, and rocky areas, encountering awesome lava rock formations and fauna before arriving at the summit.

Speaking of the summit, the view from the top of Imbabura is incredible. On a clear day, you'll look out on the northern section of Ecuador's Avenue of the Volcanoes, with views of Cayambe, Antisana, Illnizas, and Volcan Chiles, not to mention Lago de San Pablo below.

It's a great hike for the inexperienced and veterans and the perfect warmup for some of Ecuador's more illustrious peaks like Cotopaxi. The best route up Imbabura — and by best, we mean not requiring specialist equipment – scales the volcano's north face. The route begins in the small town of La Esperanza, 45 minutes from Otavalo.

Realistically, climbing and descending 2,100 meters over a 21.5-kilometer trail will take up a full day, a long one at that.

Expect the hike to take eight to ten hours, and factor in transport from your hostel in Otavalo and back. For a hike of this length, you'll need to pack plenty of water, snacks, and lunch. You'll also need to wear warm clothes; it gets chilly at 4,000 meters above sea level.

With such an enormous climb, we recommend spending a few days in Otavalo before climbing Imbabura. Doing so will allow your body to acclimate to the altitude and minimize the risk of experiencing altitude sickness.

Laguna Cuicocha

Translating to the lake of the guinea pigs, owing to a supposed resemblance with the two islets in its center, Laguna Cuicocha is an ancient 3-kilometer-wide lake located 18 kilometers from Otavalo.

Laguna Cuicocha formed over 3,000 years ago, following an eruption of nearby Volcan Cotacachi, which left the caldera to fill with water, bar the distinctly in-guinea-pig like islands in its center.

Cuicocha still feels a little isolated and under-visited, which is surprising given its proximity to Otavalo. Although the lake is part of the Reserva Ecológica Cotacachi Cayapass, there is no entrance fee. Your only expenses will be getting transport there and back, food, and drink; it makes for a very cheap day trip.

Getting to Cuicocha from Otavalo is pretty easy. Your journey will start with a 30-minute, $.35 bus from Otavalo to Cotacachi. These buses are regular, so if you miss one, you won't have to wait too long for another. After getting off the bus at Cotacachi, you'll need to hail a taxi to arrive at the lake, costing $6. When you arrive at the lake, arrange return transport with your taxi driver, we recommend asking them to pick you up in five hours.

Once you arrive at the lake, you must sign in at the park ranger's office. It's also here that the park rangers will insist that the only way to circle the lake is anti-clockwise so that the lake is always on your left. Going this way, the climb is a lot more gradual.

After signing in, you should go to the grey visitors center to your right, which marks the official start of the trail and contains a few exhibitions.

Walking the lake's circular circuit should take around four-to-five hours, covering 14 kilometers and climbing 512 meters to a peak altitude of 3,512 meters. The trail shadows the rim of the lake. Along the way, you'll be surrounded by stunning local fauna, the Andean countryside, and the glittering surface of the lake below.

While the hike feels incredibly off-the-beaten-track, the trail is very well-marked. Towards the end, there are a few houses where you can grab a coffee and get out onto the water via boat. While the lush islands in the middle of the lake may look particularly inviting, visiting them is prohibited, so you'll have to make do with admiring them from a distance.

Antigua Fábrica San Pedro

Antigua Fábrica San Pedro is a museum dedicated to the history, culture, and traditions of the Kichwa people in Otavalo, Ecuador. Located in the city center, this museum is a fantastic way for travelers to learn about the Otavalo people and their history. Contacting the museum in advance is recommended to arrange a tour in English, and the entrance fee is just $5. Unfortunately, the museum is closed on Sundays.

The traveler hostel

A popular hostel choice for backpackers on a budget, the family-run Traveler Hostel is located in the heart of Otavalo, a short walk from Plaza de Ponchos and the famous Otavalo market.

The hostel has built a reputation for its friendly and knowledgeable staff, who are happy to recommend places to eat, shop, and see to travelers. The hostel has a cozy family-home feel, which is unsurprising, considering it was the owners' home before they opened their door to the rest of the world. The hostel has all the amenities and creature comforts that one would expect, including free WiFi, a self-catering kitchen, a common room, security lockers, and a book exchange.

As for the rooms themselves, The Traveler Hostel offers a selection of dorm rooms and privates. Dorm rooms can occupy up to five people in twin beds for a very affordable $13 and feature a shared bathroom. Private rooms in various configurations are available from $29-50, with sleeping arrangements for between two and four people. All private rooms feature an en-suite bathroom and a wardrobe.

El Andariego

Based in the heart of Otavalo, just two blocks from Plaza de Ponchos and the famous Otavalo market, El Andariego is a great base for exploring this charming city and its surrounding area.

El Andariego has a great community feel to it. There are only nine rooms, of which just two are dorms, making it pretty easy to get on speaking terms with your fellow guests and make friends.

The hostel boasts some great amenities for a comfortable stay, including free WiFi, a self-catering kitchen, a restaurant-come-café, a shared lounge, an outdoor terrace, a dedicated restaurant, and a tour desk.

As for the rooms themself, there is just one four-bed and five-bed dorm and a couple of privates available at the hostel.

Both dorm rooms are priced at $35 and feature a shared bathroom. Private rooms in various configurations – all with a private en-suite – are available for $50-97 and are built to sleep two to four people.

All rooms at El Andariego have a wardrobe, a TV, security lockers, and a reading light.

Hosteria Rose Cottage

For those who prefer to be away from the hustle and bustle of the city, Hosteria Rose Cottage is perfect. This charming hostel is based three kilometers away and nestled amidst the towering mountains of the Andean countryside.

The distance means you're never far from town, while attractions in Otavalo's surrounding area are even more accessible.

Getting to Otavalo from Hosteria Rose Cottage requires a 50-minute walk, a short $.35 bus journey, or a $3 taxi. In any case, getting into town is not a huge task.

The hostel comprises seven buildings, offering various accommodation options to suit any backpacker. Arriving at the hostel, you'll be surrounded by the towering volcanoes of Imbabura, Cotacachi, Cayambe, and Fuya Fuya. On-site amenities include free WiFi, bike storage, meeting rooms, a tennis court, gym equipment, a games room, hammocks, a barbecue, a hot tub, outdoor terraces, a restaurant, a bar, and a café.

Being a little outside the city, the restaurant is a godsend. All guests can enjoy a complimentary breakfast included in the cost of their accommodation. Meanwhile, lunch and dinner are traditional Ecuadorian affairs using fresh local ingredients.

As for the rooms themselves, accommodation at Hosteria Rose Cottage is – as already mentioned – spread out across several buildings.

Casa Imbabura is the largest of those buildings and contains a sizeable 11-bed dorm room with prices sitting at an affordable $12 per night. Guests staying in the 11-bed dorm also benefit from Imbabura's dedicated common room area, self-catering kitchen, and terrace. It's like the Russian doll of hostels.

Casa Cotopaxi is the centerpiece of the hostel and houses Hosteria Rose Cottage's restaurant-come-bar. In addition to the restaurant, Casa Cotopaxi contains private rooms, some with a private bathroom, others with a shared, and a small five-bed dorm room. The private rooms here are priced between $35-40, while the dorm room is priced at $16 per night.

Cabaña Cayambe is a great option for couples. It's a cozy little cabin that sleeps two, has a private bathroom, and has a small terrace with awesome views of two volcanoes. The entire cabin is priced at a very respectable $45.

Casa Fuya Fuya is the newest of the seven buildings at Hosteria Rose Cottage, comprising six comfortable rooms – some of which have a fireplace. There is a two-room suite with a private bathroom, TV, and king-size bed for $75 per night. The most expensive option is the $90 apartment with room for two adults and two children. After that, there are various configurations of private rooms to accommodate two, priced between $50 and $75.

Casa Rose Cottage is the original building that gave this hostel its namesake. Today it is a more luxurious private house with a four-poster king-size bed, a sitting room, fireplace, downstairs bathroom, an extra sofa and balcony upstairs, and a private bath and shower room. The house is close to the jacuzzi and is known to staff as the honeymoon suite. It costs $75 for two people, though there is room for three, in which case the cost shoots up to $90.

Casa Cotacachi is a little secluded from the rest of the hostel buildings and has great views of the Taxopamba valley. Inside, you'll find six double bedrooms, four with a private en suite and two sharing a bathroom. Prices for rooms with a private en-suite range from $40-75, while rooms with a shared bathroom are priced at $35.

Casa Chimborazo is the best house for those traveling as a group. Inside the property, you'll find a private lounge, TV, fireplace, self-catering kitchen, two balconies, two bathrooms, and two bedrooms. It was built with families in mind but could accommodate up to six backpacker buddies. The house is priced at $120.

La Cosecha Coffee & Bakery

Just around the corner from Plaza de Ponchos and Otavalo's famous handicraft market, La Cosecha Coffee and Bakery is the perfect pitstop to wind down after exploring the city.

The atmosphere is cozy, the staff are friendly and attentive, and visitors can access free WiFi. The free WiFi is a big bonus for digital nomads. It's a great place to hunker down with some good coffee and sweet treats while getting some work done.

Speaking of, while this bakery is renowned for its delicious sweet treats, it also serves up light meals for breakfast and lunch. Moreover, all food is made exclusively from locally sourced and sustainable ingredients.

Breakfast will set you back by $4.5-6, while lunch costs $4-8.5. As for drinks, the cafés range of coffees and smoothies will cost you anywhere between $2 and $4.

Café Pachamama

Café Pachamama is cozy and rustic, with a picturesque garden and welcoming interior. The café prides itself on the use of organic and local ingredients. It offers a menu for lunch and dinner and a range of sweet treats and coffees as a snack.

Pachamama is also a great choice for veggies and vegans, with one of Otavalo's most extensive dedicated menus. If you've got time to visit without looking grub, Pachamama also runs cooking classes and workshops to educate its visitors on healthy eating and sustainable living.

Breakfasts here will set you back by $2-6.25. If you're looking for a proper meal at lunch or dinner, Pachamama's starter menu is priced between $3-5.50, while mains are priced between $8.25 and $18.75.

Mi Otavalito

Another popular restaurant in Otavalo and one that's known for its dedication to local Ecuadorian cuisine. The restaurant is in the heart of Otavalo's market, making it convenient to stop for a bite after a busy day exploring the city and beyond.

In addition to delighting customers with its delicious local foods, Mi Otavalito is well known for regularly hosting live music and dance performances. It's a great spot to meet some locals and dance the night away.

Regarding the food, starters are priced between $2.50 and $7. Meanwhile, the array of mains will set you back by $6-13.50. If you have room after dinner, deserts are also available for $2-3.50.

The restaurant also has a great range of cocktails and beers. If you fancy a tipple, we recommend trying the local favorite, Chicha Morada, a purple corn drink.

Otavalo is located in the Ecuadorian highlands, where temperatures are fairly consistent throughout the year due to its proximity to the equator. In this region, the average temperature year-round sits at around 21ºC, with variances more associated with altitude than the seasons.

However, there are fluctuations in rainfall throughout the year. The rainy seasons in Otavalo stretch from October to May, with March and April experiencing the greatest rainfall. The dry season lasts from June to September.

The dry season tends to draw in more visitors than the rest of the year, not just for the better weather. June and September play host to Otavalo's biggest cultural events, the Raymi festival, a local Kichwa tradition celebrating the summer solstice in June, and the Yamor festival, with its music, dancing, and parades taking place in September. Having said that, Otavalo has no real peaks in tourism — day trips to the market from Quito draw in visitors all year round.

Generally, we'd recommend the dry season from June to September as the best time to plan your trip to Otavalo. These months offer the perfect blend of better weather, pleasant temperatures, and great local traditions to celebrate. It's also the best time to hike around the surrounding Andean countryside.

Our Map of Otavalo, Ecuador