Mali Lošinj is located in the Augusta bay, the biggest protected bay on these islands. It has 6,500 inhabitants, which puts it in the first place among all others Adriatic islands. Its beginnings go back to 12. century when twelve Croatian families came to the island and formed a settlement in the bay of St. Martin. The first settlers were farmers who later on turned to fishing, showed interest in maritime business and shipbuilding. Gradually the settlement moved to the actual Mali Lošinj harbour.

The golden years of Mali Lošinj were in 19. century thanks to the sea and shipbuilding. Due to the big changes and crises in shipbuilding in the area ( the invention of the steamship) it seemed that prospects of Mali Lošinj were not great. Thanks to a discovery of the effect of Lošinj's mild climate on people's health and the beginning of the new industry, tourism, the new period in Lošinj's history began.

Today Mali Lošinj is one of the main tourist resorts in the Adriatic, famous and recognized all over Europe by tourists who keep on visiting it again and again.

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