The indigenous Otavalo people are famous for weaving textiles, usually made of wool (that is sometimes as black as a raven), which are sold at the famous Saturday market. Although the largest market is on Saturday, there is a very wide range of wares available throughout the week in the Plaza de los Ponchos, and the many local shops.
The Otavalo market consists of ninety mushroom-shaped concrete umbrellas with benches. The market was designed and built in 1970 by Dutch architect Tonny Zwollo.
During the market's peak, almost one third of the town becomes full of stalls selling textiles, tagua nut jewelry, musical instruments, dream catchers, leather goods, fake shrunken heads, indigenous costumes, hand-painted platters and trays, purses, clothing, spices, raw foods and spools of wool.
Otavalo was an area made up principally of farming communities due to the rich volcanic soils in this area, but with the growth of tourism, the town has begun to focus more on the making of handicrafts which have made the Saturday market a popular stop with visitors to Ecuador. Tourism has become the town's main industry and as a result there are many more hotels, hostels, and tour operators than other similarly sized Ecuadorian towns, such as nearby Cayambe. Further, Otavaleno (people from Otavalo) have had notable success selling their goods abroad.
As Otavalo is famous for its textiles, many of the nearby villages and towns are famous for their own particular crafts. Cotacachi, for example, is the center of Ecuador's leather industry. In San Antonio, where the local specialty is wood carving, the main street prominently displays carved statues, picture frames, and furniture
