Residents of Hvar mostly work in the fishing and tourism industries. Hvar has a very mild Mediterranean climate, beautiful beaches and Mediterranean vegetation that make it one of the most attractive tourist centers in Europe. The island promotes itself as "the sunniest spot in Europe", with over 2715 hours of sunlight in an average year.
Hvar town is the main tourist center. It features a large public square (St Stephen's Square/trg Sv. Stjepana) that is open to the sea. During the tourist season, the port is filled with large yachts. All-night discos attract large crowds of young visitors, including Veneranda, one of Europe's leading open-air party venues.
Another major economic activity is the cultivation of lavender, used for aromatic oils and soaps. Hvar is often called the "island of lavender".
Hvar is also one of the two most famous wine making zones in Croatia. Vineyards on the southern side of the island are famous for red wines produced from the Plavac Mali grape. The central plain between Stari Grad and Jelsa is famous for its white wines