Karlobag is a 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. 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. The town itself has several historical landmarks, especially the 1713 Capuchin Monastery which has many old paintings, the most important monument of culture in the town. A small exhibition of ecclesiastical art, an archive and a library is arranged in the monastery. Also other churches, most dating back to the 17th and 18th centuries. On the hill above town are the ruins of a Middle Ages fortress called Fortica, and the baroque church of Saint Charles of Borromeo (1776), built on the site of a church of 1615.