The inner part of the cove south of Cape St. Nicholas, where the port of Pag is situated, is shallow and muddy. A 50 m long and up to 4.5 m deep navigable canal represents the entrance in the port, which has an enclosed small port of a depth up to 2.9 m, and an embankment, along which the sea is between 3.6 and 4 m deep, south of the port. Larger vessels anchor along the eastern coast, at a depth between 24 and 38 m, 850 m far from the ruins of the chapel on Cape St. Nicholas. During fine weather conditions and in the summer months smaller vessels can anchor in front of the entrance in the navigable canal. Ships with a draught of up to 3.5 m land along the northern embankment, and boats land in the small port. Chief occupations include farming, viniculture, livestock breeding, fishing, shipbuilding, salt production and tourism. Situated on the main road (M29) running through the whole island.

Tourism on the island of Pag has seen its boom in the last decades. A large, well-maintained public beach, particularly suitable for families with children, lies not far from the centre of the town. The former storehouses of the old salterns of Pag (one of them was redecorated into a discotheque) and mineral mud of Pag (on a location called Lokunja). The famous lacework of Pag, the best-known national lacework, is produced here, and in the local cheese-monger's shop one of the most famous authentic national sorts of cheese - the cheese of Pag. The prominent national costumes are also categorized as national souvenirs. The present offer of Pag includes hotels, apartments, rooms, sports and recreational facilities (water sports in particular), cultural events, which - along with the impressive landscape - stone lace in the sea - make Pag and the Pag Bay an exquisite tourist resort. The vicinity of Karlobag, and the World Biosphere Reserve on Velebit Mountain, offer mountain enthusiasts and lovers of the mountain panoramic views to experience both a mountainous and a marine recreation in a single day.