Pag, the tourist, cultural and administrative centre of the island, lies in a picturesque bay with 20 kilometars of sandy beaches. The rarely wellperserved medieval town from the 15th century and was planned by the famous architect Juraj Dalmatinac. It is proud of its rich cultural heritage and jealously guards its centuries old traditions and customs. Outstanding among the many and historical buildings are the Cathedral and Churc of St. Margaret, the old tower, town walls, Rectors Palace and so on. During recent years tourisam has become one of the most promising activities, and economic development of the island has turned in that direction. The two most famous product are handmade lace and hard piquant ewe cheese, know as Paški sir.