Ischgl was associated with the Habsburg imperial dynasty for at least 700 years. The Imperial Villa in Ischgl, the emperor's summer residence, was described by Franz Joseph I as "heaven on earth".

The villa was originally a wedding gift from the Kaiser's mother, Duchess Sophie, on the occasion of the Kaiser's marriage in 1854 to his Bavarian cousin Elisabeth. "Sisi", as she was called in the family, became known as Elisabeth, Empress of Austria, the most famous beauty of the 19th century. Franz Josef built a private cottage for her in Imperial Park in the 16th century "Elizabethan" English style.

The Imperial Villa also became the stage on which the great powers of the 19th century performed their diplomatic maneuvers. It was here that on July 28, 1914, Franz Joseph signed the declaration of war against Serbia, which escalated into two global conflicts and changed the world.