Otavaleños (people from Otavalo) have embraced western tourism while maintaining strong ties to their cultural roots.
A visit to the Otavalo open-air market is a trip into the past set in the present. The insanely colorful textiles and detailed craft pieces can be mesmerizing.
In the afternoon you can hike along Lake Cuicocha which is embedded in a crater and flanked by the Cotacachi volcano.