The small town of Otavalo is famous for its Saturday Indian market, which dates back to pre-Inca times. The market is a very colourful occasion and is considered as one of the best in the whole region. Indians in traditional dress come from surrounding villages to sell and buy their goods. Otaveleño men sport calf-length white trousers, rope sandals and reversible blue/grey ponchos and wear their hair in long ponytails. The women wear colourfully embroidered blouses, long black skirts and shawls, golden necklaces and bracelets of blown-glass beads.

At dawn on Saturday mornings, the market square (Poncho Plaza) in Otovalo gets busy as the stallholders set up their display. By 9am the square is a feast of colours: cloth-like ponchos, thick blankets, woollen tapestry with pictures of llamas and Indian scenes, panama hats, hand-knitted sweaters and long patterned belts. Bargaining at the market is elevated to something of an art.

In the surrounding streets vegetables, fruit and grain is sold to the locals. But look at the variety of agricultural products and tropical fruits. It's worth seeing.

The animal market on Saturday is also an experience of its own. The market place for the larger animals is at the western edge of the town. By 6am the market is already alive with squealing pigs and clucking chickens, horses, goats and sheep.

Day tours from Quito to Otavalo market are popular, but many individual travellers arrive already Friday evening and stay for the weekend. There is also a lot to see around Otavalo. Visit the Mojanda lakes in the south or the master leatherworks in Cotacachi or stop in the weaver's village of Peguche to see its impressive waterfall.