Cres-Lošinj Archipelago is a single geographical and traffic unit consisting of two bigger islands (Cres and Lošinj) and six smaller islands. The archipelago is administratively divided in two municipalities: Town of Cres and Town of Mali Lošinj (the two pilot areas of the SuSTowns project).
The administrative centres of the municipalities are Cres and Mali Lošinj, both typical small Mediterranean towns (the setlement of Cres has 2.200 inhabitants; Mali Lošinj 6.000 inhabitants/the municipality of Cres has 2.900 inhabitants; Mali Lošinj 8.000 inhabitants).
Both municipalities have long tradition in tourism. The tourism in Cres started in 1845; in Mali Lošinj 1885. Cres is less developed than Mali Lošinj. In 2019 Cres had 909.000 overnights; Mali Lošinj 2.372.000. More than 60% are realised in July and August (summer destinations based on sun and sea). According the Life Cycle Butle'r model Cres is in the phase of stagnation while Mali Lošinj is in the development phase.
Since Cres and Mali Lošinj have, up until now, functioned as two separate destinations, but are part of a single geographic area, the two municipalities have expressed the wiling to initiate a collaboration towards a development of a common destination brand and collaborate in the direction to become a single destination.