This is typical Mediterranean habbit, drying cloths outdoors at the fresh air. Shouldn't be too sunny but also not too windy and then it's ideal for fast drying. Fresh and slightly salted air gives to a cloths very special smell. Coastal people use this method all year long because winter isn't that cold and rarely snowing. The only problem is sudden rain if cloths already dry, but if living here one gets use on it.
For a glimpse of the local customs, a walk on the walls would do. The best way to dry up laundry in this dry climate is to hang them outside. On the contrary, a bunch of hospitality sheets cramped in a stone/cement house are bound to inflict a mould attack on the premises with unpredictable consequences. In short, it looks cute, authentic and fresh!
Like in other Dalmatians, Dubrovnikians hang their clothes outside on the street to dry ;) Looks funny and is efficient!