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Karlobag is a small town 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 Croatians making up the majority at 92.44%, and with 510 people living in Karlobag itself (census 2001). The town was founded by the Holy Roman Emperor Charles IV, Holy Roman Emperor in the 14th century, and is thus named after him (Karlo being the Croatian variant of Charles.) The town itself has several historical landmarks, especially the Capuchine Monastery, which is full of old paintings, and other churches, most dating back to the 17th and 18th centuries. On the hill above town are the ruins of a Middle Age fortress called Fortica, and the church of Saint Charles of Borromeo built in 1615. 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.
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