In June 1892, Mali and Veli Lošinj were declared health resorts, which came as a result of years of numerous research, as well as experiences and testimonials of people whose health generally improved during their stay on the island.
In the early research, Prof. Ambroz Haračić paid a lot attention to the meteorological and vegetational advantages of the island of Lošinj, and he has greatly contributed to the forestation of the island. He conducted meteorological research from 1881 until 1884 when he published his observations of atmospheric pressure, clouds, and winds. A year later, an Austrian balneologist and climatherapy specialist, Dr Conrad Clar, spent time on Lošinj with his son who completely recovered from a severe throat condition after 3 weeks on the island.
Dr Leopold Schrötter also visited Lošinj for the first time in 1885 and encouraged founding of Tourism Association, which was indeed founded in February 1886 as a subsidiary of Austrian Tourism Association. 1886 also marks the first visit of the Archduke Charles Stephen of Austria who built his winter mansion in Veli Lošinj which he visited until 1915.
With the encouragement of Dr Schrötter and a group of Viennese physicians and university professors, who have all noticed the benefits of the Čikat Bay in Mali Lošinj, they founded the Society for Forestation and Beatification of Mali Lošinj in April 1886. At roughly the same time, Prof. Ambroz Haračić published his famous study on the climate in Mali Lošinj entitled “Sul clima di Lussinpiccolo, Osservazioni e Studi”.
The first in a series of benefits of Lošinj climate was published in July 1886 by Dr Conrad Clar. Hotel Vindobona, the first on the island, opened in 1887, and in March of the same year Rudolf, heir to the Austrian throne, climbed the mountain Osoršćica. The tourist guide “Die Insel Lussin” was published in 1888, and Zum Erzherzogin Renata (Hotel Rudy), named after daughters of the Archduke Charles Stephen opened in October of 1888, making it the first hotel in Veli Lošinj.
Several events took place in 1892 – Mali and Veli Lošinj were declared health resorts, Rules of Health Resort were adopted, and Maria-Amalya Asyl Sea Nursing Home of the City of Vienna for scrofulous and tuberculous girls was opened.
In 1895, an entrepreneur from Graz, Mr. W. Riedel built Villa Adelma, the first villa in Čikat as a place where he could improve his health condition. That same year, the Archduke Franz Ferdinand spent 6 weeks on Lošinj to recover from tuberculosis.
1899 marked the opening of two facilities – Wienerheim, the Sanatorium of Emperor Franz Joseph for the treatment and care of Viennese students, and the completion of works of the most beautiful and the most luxurious villa in Čikat – Villa Carolina.
A few years later, it is assumed that it was in 1902, Restaurant Hoffmannn B&B opened in the most beautiful and biggest building on the waterfront of Mali Lošinj, nowadays Hotel Apoksiomen. At the same time, the cove of Blatina in Čikat saw the beginning of construction of the swimming area Čikat (Seebad Cigale).
The Spa Institute for mildly sick children and adults Kuranstalt Sanatorium Dr Josef Simonitsch opened in 1903 in Veli Lošinj, which was the first medical institution that used natural thalassotherapy factors in treatment.
Spa centre (Kurhaus) at the waterfront of Mali Lošinj (destroyed in WWII) that served as the headquarters of the Spa Committee and the gathering point for foreigners, opened in 1905, followed by the opening of Kurhaus Sanatorium Dr Rudolf Hajós in Čikat in 1906.
In November 1906, Sisters of Mercy of the Holy Cross opened Sanatorium Bethania in Veli Lošinj for the treatment of children and adults (mostly priests). Military sanatorium of the Austrian Society of the White Cross Militär-Kurhaus “Weisse Kreuz” opened in March 1908 and Hotel Alhambra in 1912, both located in Čikat.
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