Originally, the town began as a fishing village with a successful shipping trade; today it is a popular tourist and vacationing destination.

The station had a crew of twelve men who would row a small boat out to sea while their captain operated its rudder.

The station building, which was designed by Sylvius Knutzen and expanded in 1944, has been preserved on south-eastern end of the town since the railway's closure.

During the occupation of Denmark in the Second World War, the railway was used extensively to transport materials for the fortification of Jutland's west coast.

A large number of concrete bunkers built during the occupation remain along the beach to this day, though they are in severe disrepair.

Because the railway made it possible for vacationers from larger cities, such as Aalborg, to visit the beach at Løkken on day trips, it greatly benefited the town's tourism industry.

The Badehotel brought money and business to Løkken and tourism began to phase out the fishing and shipping industries that originally established the town.

Today, Løkken has a total of three camping locations and three bed and breakfasts, as well as many vacation homes and apartments which are rented out.

[9] Løkken is located on the southern end of Lønstrup Klint, a series of cliffs on the western peninsula of Jutland.

[10] To the south, the Løkken beach stretches for 19 km to Rødhus, past the villages of Blokhus, Grønhøj, and Saltum.

Several of the dune and meadow areas inland from the beach between Løkken and Rødhus have been protected since 1962 in order to prevent vacation houses from being built.