Guano has a small museum (entrance fee $1) that showcases some pre-Columbian pottery, textiles, and the mummy of a monk that was found entombed in the wall of an old church. There is a small beautiful park in the center of town.
One popular activity is to climb the hill located at the end of town near where the bus drops you off. The hill has a large staircase with several stone carvings, and offers a spectacular view of the city and the surrounding mountains. On a clear day one can see El Altar, the erupting volcano Tungurahua, and Chimborazo, the highest peak in Ecaudor.
Guano is known for its shoes- the street where the bus drops you off is lined with stores selling everything from hiking boots to high heels. Beware, though: No one carries anything in a size bigger than 42 (European), which roughly corresponds to a 10 in American sizes.
Guano's other claim to fame is its rugs- myriad shops sell rugs and carpets of all shapes and sizes, and if one haggles you can get a very good price.
Cholas are small rolls filled with a sweet, sticky filling not unlike molasses. They are only made in Guano, so buy some while you are here. You will see signs all over for cholas, they should cost about $0.25 apiece.
Guano is also known for its fritaderias, restaurants that sell plates of pork that has been stewed in juices until it is falling off the bone. A plate, which normally costs about $3-4, also will contain boiled choclo, or corn, and sometimes a fried plantain or banana. Look for the numerous 'Fritaderia' signs.