
The main bus station is a fifteen minute walk from the medina. There are usually a couple of petit taxis waiting for a customer at the entry. Don't pay more than Dh 10 to get to the medina. If it is hot, or, as is very likely, you have just endured a long coach drive to the town, you should seriously consider climbing into one of these taxis. With a heavy backpack, the walk up to the hotels of the town can be fairly strenuous!
There are plenty of petit taxis to ferry you around the outer town (they are not metered, agree on a price before you start your trip), but most of the town is walkable, and the medina can only be traversed on foot.
All the usuals are on offer in the medina — carpets, leatherwares, spices, metal wares, etc. If you're a seasoned bargainer you can probably get better prices in Fes or Marrakech, but Chefchaouen is undoubtedly a more pleasant place to shop. You'll also find plenty of hippie-wear aimed at budget travelers and marijuana tourists.
Chaouen is particularly renowned for leather artisans, and there are 4 or 5 workshops dotted through the town, whose goods you can find at many of the local stores and in the larger northern cities. Many of the craftsmen in Fes and Tetouan served their apprenticeships here. The choice in local stores is often limited to bags and purses, so if you're up for it take advantage of the workshops where you can tweak a standard design or come up with something entirely your own, even moving beyond traditional leather into snake, crocodile, lizard and more. They can make pretty much anything, from guitar straps and tobacco pouches, to handbags and jackets. It can take a couple of days to make the more complex designs, so head there on your first day, or have it shipped home (£6 within Europe).
The local specialty is baissara, but you'll also find the usual staples such as tajines (vegetable stew with goat or sheep) and fish tagras. The region is also well known for olives and olive oil.