The healing properties of its mild microclimate were discovered thanks to the meteorological surveys that Ambroz Haračić, a teacher at the Maritime School in Mali Lošinj, published in Vienna, and the efforts put in by the Austrian balneologist and climate-therapist Conrad Clar and the renowned Viennese physician and university professor Leopold Schröter.
Based on their reports, Veli Lošinj and Mali Lošinj were pronounced national climate resorts in 1892, which was an excellent recommendation to the medical public of that period. At the time, Veli Lošinj had already become a meeting point for the aristocracy that was now joined by wealthy residents. They built, renovated and opened not only healthcare and rehabilitation institutions and sanatoriums, but also a number of hotels, guesthouses and villas. The First World War ended this booming development of health tourism.
Between the two world wars, the Italian authorities proclaimed Veli Lošinj and Mali Lošinj “summer resorts for healthy guests”. Winter health tourism was replaced by summer tourism associated with bathing.