Belize City owes its existence to the harbor at the mouth of Haulover Creek, a branch of the Belize River, down which the Baymen (early British woodcutters) floated lumber from their inland camps. It had little significance until the Spanish were defeated at St George's Caye, the Baymen's first main settlement, in 1798. 'Belize Town' then became and remained the British headquarters in Belize. Popular lore has it that the settlement - a few huts surrounded by mosquito-ridden swamps - grew on a landfill of mahogany chips and rum bottles deposited by the Baymen. They would come to the coast after the rainy season to dispatch their lumber overseas and spend most of the proceeds on rum.
During the 19th century, the town grew on both sides of Haulover Creek. The British merchants' homes and the key buildings of the ruling elite were clustered along and near the southern seafront. African slaves and their descendants lived in cabins inland of here. By the 1880s, the town had a population of around 5000, the great majority being Creoles descended from the British and their slaves - though whites still held all the power and wealth.
Belize City witnessed most of the significant events on the long road to Belizean independence, including riots in 1894, 1919 and 1950. The city was devastated by hurricanes in 1931 and 1961. It was Hurricane Hattie in 1961 that spurred the government to build a new capital at Belmopan, 84km (52mi) inland. This left Belize City, and the Creole population in general, feeling rather neglected, and residents started emigrating to the USA to seek an escape from overcrowding, unemployment and poor sanitation.
Drug-related gangsterism kicked off during the 1980s and '90s, keeping conditions pretty tough for the city's underemployed working class. Middle-class residential areas have developed on the northern and northwestern fringes of the city, while the central areas either side of Haulover Creek remain the country's cultural and commercial hub.
The biggest change to the city's face in the 21st century has been the invasion of cruise-ship tourists, bringing hundreds of thousands of passengers each year. During 2004, 850,000 tourists came ashore at the city's Tourism Village at the mouth of Haulover Creek - up from almost zero in 1999. Generally, passengers wander around the downtown area for a few hours or head off on excursions to inland attractions.
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