In the second half of the 19th century the island of Lošinj was one of the major naval and shipbuilding centers of the Austrian-Hungarian Monarchy with a fleet of over 100 ocean cruising sailboats and many smaller vessels. Rich families of ship-owners, captains and shipbuilders with their ships and skills could measure up to the owners of luxurious yachts and wooden boats from Vienna, Trieste and Venice who used to visit Lošinj or had villas or weekend houses here, and compete with them in organized regattas. To win a sailboat race, same as today, was a matter of honor and social prestige.
The Jugo Sailing Club was founded in July 1949. In November the Lošinj Cup takes place, a very popular regatta for Optimist boats and early in August the traditional Lošinj Sailboat Regatta takes place.