Karlobag (Italian: Carlopago) is a historic and picturesque seaside municipality on the Adriatic coast in Croatia, located underneath Velebit overlooking the island of Pag, west of Gospić and south of Senj. The Gacka river also runs through the area. The population of the municipality is 1,019, with Croats making up the majority at 92.44%, and with 510 people living in the settlement of Karlobag (2001 census).
Today, chief occupations are fishing and tourism. Main activities include boating and hiking, as Karlobag is known for its excellent trails. The Velebit mountains rising above Karlobag have been declared the a world biosphere reserve, the only one in Croatia.(Wikipedia)