The villagers of Ilovik are engaged in fishing, sheepfarming and tourism.
The location of Ilovik is ideal, situated in a small bay and protected from the north by the uninhabited islet of St. Peter where the local cemetary is located.
The coast is easily accessible from all sides with numerous safe gentle coves. The largest cove with a sandy beach is Paržine on the south eastern side of the island.
There are shops, a post office, bakery, patisserie and several catering establishments on the island.