Hamr na jezeře is surrounded by several hills - Hamerský špičák with Děvín Castle, Mlýnský vrch and Chrástenský vrch. The highest point of the area is Ralsko with a ruin of an old castle. At the end of the 19th century Hamr became a popular holiday resort. Various holiday houses and villas were built there and the small town acquired the look of a spa. Further development of the small town started after 1989. Nowadays Hamr na Jezeře is a popular resort for an active family holiday. There are good conditions for various sports, hiking and cycle touring in the surroundings.