Livestock farming has been one of the foundations of the subsistence economy of a large number of inhabitants of the island over the centuries. Sheep farming predominates, which is now well developed mainly because of the famous and highly valued Pag cheese, which together with the lace has become the most famous product of the island. With a relatively hard texture, mild saltiness and special aroma, this cheese regularly wins prizes in numerous competitions around the world. In addition to cheese, it is Pag lamb that is highly valued for its distinctive flavour, resulting from the specific pasture that Pag sheep graze on, which includes aromatic herbs such as sage.
Production of salt
Salt is also a product for which the island is famous and unique. The salt was produced in various places along the Croatian coast, but on Pag more than elsewhere thanks to the exceptional climatic conditions and favorable clay surface.
The traditional way of producing salt through natural evaporation was abandoned 25 years ago when in the area of Svilno, 5 km south of the town of Pag, the salt factory was built. Today "Solana Pag" is the largest salt production facility in Croatia with the annual production of about 30.000 tonnes.
Production of olives
The olive trees of Lun make it a unique place on the island of Pag, but also in the world. Among 80.000 olive trees in the area of Lun, there are about 1.500 wild olive (lat. Olea Oleaster), with the height of 5-8 m and a diameter of 20-80 cm. Experts have estimated the age of some trees more than 1.500 years! This area of 24 hectares of wild olive is one of its kind on the Adriatic and one of the three in the world and therefore has a great botanical significance. Because of its characteristics, it was protected in 1963 and proclaimed a botanical reserve. Olive oil from Lun has a particular quality and aroma and is considered one of the best in the Adriatic.
Even if there is not a lot of fertile ground, Pag is also known for its viticulture. Because of the extreme summer heat, little rain and lots of wind, the grapes are pronouncedly sweet. Particularly well-known are white wines žutica and gegić, made from the local indigenous varietals. You can taste quality wines either from your hosts or in one of the taverns.
Today, tourism is the most important sector of the economy of Pag. In the beginning of the 20th century, in the Zvonimirova street in the town of Pag, the first hotel was opened and in 1929 the town had its first tourist brochure. However, tourism made a major leap forward in the beginning of the 60s, especially with the construction of the bridge of Pag in 1968, when it became Pag practically a peninsula from the traffic point of you. Today, tourist products and services are broad and rich, numerous hotels and still more numerous private accommodation facilities, and visitors can enjoy cultural events, day trips, sports and recreational activities, can swim on the beaches of this island rugged coastline. However, the best most prominent place in Pag`s tourism is the beach Zrće or "Croatian Ibiza", which became a worldwide phenomenon attracting every year a growing number of young people looking for a hot and fun summer spree.