Credit: Christopher Scott
Trekking and guide companies lure tourists with tales of Ecuador's outdoor markets for good reason: The country's highland town of Otavalo is home to the most famous market in South America. It's a spectacular site, surrounded by volcanoes and adjacent to one of the country's best-known nature reserves, the huge Ecológica Reserva Cotacachi-Cayapas.
The best time to visit is the weekend, when local artisans converge from outlying farms and villages. The first thing you notice when you enter the chaotic collection of kiosks is the wealth of color: indigo blues, vibrant greens, and blazing reds adorn the fine woolen weavings. Here you can buy the softest alpaca scarf for $10 ($8 if you haggle). There's silver, too -- bracelets, rings, and amulets arranged curbside on bright woolen blankets. If a fine, wide-brimmed hat catches your fancy, it's yours for $20. The famous Panama hat was first Ecuadoran, brought to the Isthmus of Panama by sixteenth-century Spanish traders. The original version is still made in the seaside village of Montecristi, and hatmakers are quick to remind you that they are selling Montecristis, not Panamas!
Shopping has become especially easy since Ecuador adopted the U.S. dollar as its currency in 2000. But make sure you bring plenty of low denominations; sellers won't change anything more than a $5 bill.