The town of Pag is located in the central part of the island of Pag. It is the center of economic, administrative and cultural life. The most important economic branch is tourism, which stimulated the development of other economic branches, especially hospitality and trade.
The old town center of Pag is a protected cultural monument, in which there are buildings that bear witness to the colorful city life of Pag, as well as to the wealth it had at its disposal, especially in the period from the 15th century to the 17th century. The construction of the town of Pag began in 1443, and the construction plans were drawn up in Venice. The great builder and sculptor Juraj Matejev Dalmatinac also participated in the production. The people of Pazan moved to the new city in 1467. The city they left behind was called Stari grad or Staro mesto, as it is still called today. Pag's noble families played an important role in shaping economic and cultural life in the city. With the intensive development of tourism in the 60s, Pag began to expand urbanally outside the old city center. New suburban settlements were created, such as Blato, Vodice, Murvica, Basaca, Varos, Saint Jelena and Bosana. In 1968, the Bellevue Hotel was opened, beaches, shops, disco clubs, motorhomes, roads and coffee bars were arranged. Pag is known for Pag lace, which is sewn with a needle, and it was created in the Renaissance. The first lacemaking school was opened in 1906, and the tradition of sewing lace has been going on for centuries. The lace is protected and has a certificate of original Croatian product. Of the entire tradition of the city of Pag, the most important to mention are the Pag folk songs, the Pag national costume, the carnival and the story of the Pag slave.
The most important cultural attractions are the Congregational Church of the Assumption of Mary, the Prince's Palace, the Skrivanat Tower, the Renaissance Palace of the Mirkovic Family, the Jadrulic Palace from 1683, the Church of the Holy Cross on the Dominican Square, the Benedictine Monastery of St. Margarita from 1483, the church of St. George, in which mass is held only for the feast of St. George, the saint and protector of Pag, the city administration building in the former Kamerlengo tower and more.