Otavalo, Ecuador

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Imbabura province, north of Quito, is famous for its lakes, traditional adobe villages, indigenous communities and native handicrafts. The town of Otavalo is home to one of South America's most famed Indian market -- a definite stop for most visitors. This open-air extravaganza overflows with a wide variety of handicrafts, as well as llamas, hand-woven sweaters and bags of potatoes, all piled high and wide and sold side by side.

Surrounding Otavalo are a handful of well-preserved haciendas, a number of which now operate as B&Bs. Horseback riding programs home-based at these haciendas have recently become a popular way to experience the highlands. Two hours north of Otavalo is the Guandera Reserve, a spectacular sliver of Andean cloudforest and paramo, near the Colombian border.

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