Mali Losinj is situated in the Augusta Cove, the largest closed cove of this archipelago. With a population of nearly 7,000, it is the largest town of all islands in the Adriatic. The settlement on and development of the island began in 12th century, when, escaping the onslaught of Mongols from Hungary, 12 Croatian families arrived on the island. Some of them inhabited the St. Martin's cove, which was, according to some historical evidence, the first place of contact and landing of these founders. Due to the discovery of miraculous medicinal influences of the island's climate and the fast growth of tourism, Mali Losinj is becoming a widely known and very popular destination of a large number of tourists from all parts of the world.