Otavalo, nestled in Ecuador’s northern Imbabura province, is surrounded by stunning hills and mountains with the majestic Imbabura volcano in view from town. It’s home to the Otavalos, an indigenous Andean community whose presence adds a unique vibrancy to the city. I was captivated by the rich indigenous vibe that fills every corner of Otavalo.
The majority of visitors come to Otavalo for a day tour just for visiting Otavalo’s famous indigenous market:
But just soaking in the vibe of Otavalo itself isn’t enough to truly experience the breathtaking scenery that surrounds it. There’s so much more to explore in Otavalo beyond the town center.
We spent three days here and couldn’t have been happier with our choice. Otavalo was one of the memorable stops on our 15-day self-drive adventure across mainland Ecuador.
What To Do in Otavalo, Ecuador?
Otavalo’s main attraction is South America’s largest traditional market, a must-see in the city. But beyond the market, there are plenty of other fascinating spots to discover. Here are some of the places we explored during our time in Otavalo.
Laguna de Cuicocha
Nestled at the foot of Cotacachi Volcano, Laguna de Cuicocha is a stunning crater lake featuring an island in the middle shaped like a guinea pig, called Cuicocha. You can get to Cuicocha by taking a bus from Otavalo, followed by a taxi to the lake. Returning can be a bit tricky since it’s hard to find a cab from the crater lake, so we recommend arranging a pickup with your driver beforehand if you’re planning to hike. We drove there ourselves, and it took about 45 minutes from our lovely hotel.
Laguna de Cuicocha
Laguna de Cuicocha is an absolute must-see when visiting Otavalo! The loop trail around the lake is fairly easy and offers breathtaking views at every turn.
Laguna de Cuicocha
Around the lake, you’ll encounter a variety of unique flora and fauna, adding to the beauty of the hike. For a different perspective, you can also rent a boat to explore the lake’s surface and take in the scenery from the water.
Visit Otavalo Market
The #1 attraction and must-do in Otavalo for us was visiting their traditional market. My wife and I noticed that tourists especially flock to the Otavalo Market on Saturdays, when it’s at its busiest. The market is open every day, but Saturday—known as market day—is something else entirely, with stalls spilling out from Plaza de Ponchos to nearly fill the whole town center.
The market is filled with stalls offering colorful shawls, sweaters, ponchos, and other handicrafts at great prices. My wife and I quickly learned that haggling is part of the experience, so it helps to know a little basic Spanish and brush up on your bargaining skills before diving in!
Even if you’re not planning to buy anything, simply strolling through the market is a treat. My wife and I enjoyed watching the flow of local life as people moved in and out of the stalls. The Otavalos hold firmly to their culture and traditions, even in modern times, and it’s fascinating to see locals dressed in traditional clothing, with men proudly wearing their long, braided hair.
Personally, I didn’t find the market as captivating as I’d hoped. Many of the vendors seemed to be selling the same items, making it feel more like a mass-market setup with little uniqueness. At one point, I spotted stalls with Adidas logos, Bart Simpson, and even TikTok merchandise—definitely not what I’d expected for an authentic experience. Maybe it has a different vibe on Saturdays, but honestly, I wouldn’t say visiting the market is the top thing to do in Otavalo. Luckily, there’s much more to explore in this fascinating town!
Cascada de Peguche (Peguche Waterfall)
Cascada Peguche is about a 45-minute walk from the center of Otavalo. If you’d rather skip the walk, you can easily catch a taxi or take a bus to reach the waterfall.
At Peguche Waterfalls, there’s a voluntary entrance fee—usually just a dollar or two. The trail leading up to the falls is well-maintained, lined with lush eucalyptus trees that add to the tranquil vibe. We also spotted a small artisan museum next to the waterfalls, a nice touch that adds to the cultural experience.
For those in the mood to explore a bit more, there’s a path to the right of the waterfall that leads to a small cave. We took the narrow, low passage and were rewarded with the sight of an incredible hidden cave and another waterfall—a bit of an adventure and totally worth the climb!
The entry fee is $1. Definitely worth to see in Otavalo.
Visit Lago San Pablo Lagoon
Otavalo is also home to the picturesque San Pablo Lagoon, formed at the foothills of the Imbabura volcano. This beautiful lake, set against the backdrop of the towering volcano, is a must-see. Several walkways around the lagoon lead to scenic spots like El Lechero and Mira Lago. El Lechero, known for its spiritual significance, sits just off the Pan-American Highway, offering a unique vantage point of the area’s natural beauty.
Legend has it that Lake San Pablo was born from a story of forbidden love. The tale tells of an indigenous couple whose families wouldn’t allow their love to endure. Heartbroken, she transformed into the lake, while he became El Lechero, an ancient tree, his branches forever stretching out in an eternal embrace of his beloved.
Today, this beautiful site holds a special place in Andean culture. Locals honor her memory by creating a welcoming space around the lake, inviting families to gather and celebrate the area’s rich heritage. It’s a moving tribute that adds even more depth to the lake’s natural beauty.
Megasaurios Park
A brand-new tourist destination in Otavalo called Megasaurios park opened its doors in February 2022.
It is a park with a dinosaur theme that is surrounded by greenery. It’s a fantastic area where adults and children may engage in a variety of outdoor activities.
This theme park is a unique destination that is ideal for families. Adult tickets are $10, while children’s tickets are $5. If you travel to Otavalo with kids, definitely check it out!
Museo Fabrica Imbabura
In my opinion, the top must-do in Otavalo is visiting this museum!
The Imbabura Factory, once one of the largest manufacturers in Imbabura, has now been transformed into a historical museum. It’s a place where families can dive into the fascinating history of this remarkable business and uncover the secrets behind Ecuadorian clothing production. The museum holds countless stories and mysteries about the textile industry that shaped the region.
It is really a great, one-of-a-kind experience to see this exquisite factory, which is now a museum, just outside of Otavalo.
In this restoration of an extraordinary, massive cotton plant, they have done an absolutely stunning job of conveying the tale of cotton production, labour, organising, and the local economy.
The tour guides are knowledgeable and friendly, and they let us explore the museum at our own leisure while also being willing to answer our questions.
Lagunas de Mojanda
Hiking around Lagunas de Mojanda, or Lake Mojanda, was one of our favorite activities in Otavalo. Set in a remote, mountainous area, it’s best reached by taxi or private car.
For a real adventure, consider hiking Fuya-Fuya Mountain. Just a word of caution—it’s not advisable to go if the clouds are too low, as it’s easy to lose your way in the fog. Whether hiking, fishing, or simply having a picnic, the peaceful panoramic views of the lake make the trip truly worthwhile.
Parque Condor
Parque Condor in Otavalo is a wonderful non-profit wildlife refuge focused on preserving and rehabilitating Andean condors, commonly known as vultures, along with other birds of prey. Set on top of Pukara Alto Hill, the park offers breathtaking panoramic views that add to the experience.
One of the highlights for us was the educational bird show, which teaches visitors about environmental conservation. We were also captivated by the flight demonstration featuring small birds and even the American Bald Eagle—it was truly an impressive display.
What To Eat in Otavalo
The market is an excellent place to learn about local cuisine. Here’s a list of grubs we discovered in the Otavalo market that is definitely worth a bite:
Grilled Bananas
Grilled Bananas are common street food in Ecuador. Sometimes it is sold in split halves with a bit of cheese inside.
Roasted Corn on the Cob
Another popular street food that you can get in the Otavalo market is roasted corns on the cob.
Lemon Meringue Pie
If you’re craving something sweet in Otavalo, I’d recommend stopping by Shenandoah Pie Shop. My wife and I tried their famous lemon meringue pie, and it did not disappoint! This little shop also offers a selection of other fruit pies, ice cream, and coffee, making it the perfect spot for a delightful dessert break.
Where To Stay in Otavalo
Hotels
Intiyaya Residences (La Casa Sol Andean Lodge)
This is where we stayed, and we can’t recommend it highly enough! This guesthouse, built in an ethnic style, is located near Peguche Falls, which we mentioned earlier. Our room offered stunning views of the Andes and the Valley of Dawn. The guesthouse was fully built by local owners who were incredibly friendly and welcoming, making our stay even more memorable.
Believe it or not, we were the only guests during our entire stay, which felt so undeserved for such a wonderful place! Their rates generally start around $80, which we found to be very reasonable.
Breakfast was great, and the dinner menu was delicious too—definitely worth staying in for a cozy meal after a day of exploring.
You can check the current price here.
Hotel Otavalo
Hotel Otavalo has modern Spanish architecture. They offer free buffet breakfast and internet access in public areas. Their nightly rates range from USD100 and above (check the latest price here).
Hotel El Geranio
Hotel El Geranio has a laid-back ambiance and offers free wi-fi access and parking to guests. You can book a single bedroom usually priced around USD30 (check the latest price here).
Hostels
Hostal La Rosa Otavalo
Hostal La Rosa Otavalo is conveniently located right in the heart of town. They offer a 24-hour front desk, airport transfers, and free internet access, making it a practical choice for travelers. We noticed that a superior room for two people is very affordable, priced at around $17 per night. (check the latest price here).
Hostal Flying Donkey
Hostal Flying Donkey is centrally located, making it easily accessible to everything in town. For budget travelers, it’s a great option, with dorm bed prices starting at just $9 per night. (check the latest price here).
The Traveler Hostel
The Traveler Hostel is a lively spot that offers convenient amenities like a shared kitchen and luggage storage. For those on a budget, their dorm beds are a great deal, starting at just $9 per night (check the latest price here).
How To Get To Otavalo, Ecuador
By Air
For international travelers, the nearest airport to Otavalo is Mariscal Sucre International Airport in Quito. You can fly into Quito and then reach Otavalo by bus, taxi, or private car, depending on your preference and budget.
By Bus
Buses are the most common way to reach Otavalo, with direct routes available from major cities in Ecuador. For instance, from Quito, buses depart every 15 minutes from the Terminal Carcelén, making the journey to Otavalo in approximately 1 hour and 22 minutes.
This frequent service offers a convenient and affordable option for travelers heading to Otavalo.
From Quito
Otavalo is about a two-hour drive from Quito, making it easy to reach by taxi or, if you’re renting a car, by simply pinning Otavalo on your smartphone for navigation.
For a budget-friendly option, you can catch a bus from the Carcelén or Quitumbe terminals in Quito. A bus ticket costs around $6 if you’re traveling independently. Many visitors also opt for organized tours, which can be convenient if you prefer a structured day trip.
From Guayaquil
If you are coming from Guayaquil, Flota Imbabura is operating trips to Otavalo. The journey normally takes around eight hours. The cost is about $20.
Transport in Otavalo
Taxis
In Otavalo, getting a taxi is hassle-free, with taxis available at any time of day. We found the fares to be quite reasonable, and the drivers were friendly and welcoming. Taking taxis around town made our trips easy and enjoyable!
Buses
Buses are also readily available in Otavalo, which is great for travelers on a budget. Most of the main attractions can be reached by bus, but for those harder-to-reach spots in remote areas, renting a car or hiring a taxi is a better option.
Otavalo’s Climate, and Weather
During our time in Otavalo, we noticed that cloudy days are pretty typical, thanks to the mountains surrounding the town. The climate stays warm overall, though we did experience some occasional rain. For the clearest skies and best outdoor conditions, the dry season from July to September is ideal.
Personally, I’d say the best time to visit is between June and September. It’s when you can make the most of Otavalo’s outdoor activities and enjoy the beautiful scenery under sunny skies.
Travel and Safety Tips in Otavalo, Ecuador
Cash is always the way to go, especially when shopping at the Otavalo market. We made sure to carry plenty of loose change to avoid any hassle.
We found Otavalo to be a safe place, even at night, with friendly and polite locals. Still, it’s wise to stay mindful, particularly on crowded market days. For us, though, safety wasn’t a concern during our visit.
The weather in Ecuador is generally warm, but Otavalo’s mountain surroundings make the heat here a bit milder. It gets noticeably cooler in higher areas, so we were glad we brought an extra layer for those outings into the hills.
Conclusion
For us, Otavalo was absolutely worth the visit. It’s the perfect, easy escape from the hustle and bustle of Quito. The rich culture of the indigenous Otavalos is fascinating and truly deserves to be experienced and documented. If you’re looking for a quick break from fast-paced city life, Otavalo is a wonderful place to unwind and immerse yourself in something special.
