The first Europeans to explore what is now Punta del Este were the Spanish in the early 16th century. However, the region's first inhabitants, the Charrúa, prevented settlement, killing most of the expedition. Hostilities had calmed by the 17th century as trade between the two became common. For almost 200 years, the area around the Río de la Plata was occupied by the Spanish, Portuguese and British, who all fought to get a foothold. The territory changed hands several times, but ultimately it was Portuguese expansionism at the end of the 18th century that was responsible for the colonization of Punta del Este.
Argentine troops helped liberate the area in 1828, establishing Uruguay as a buffer between the emerging continental powers of Argentina and Brazil. Post-independence, immigrants from Italy and Spain entered through Montevideo and settled along the coast.
Punta del Este achieved international prominence when it was chosen as the meeting point of the Inter-American Economic and Social Council in 1961. The council drafted the Alliance for Progress - a series of failed reforms initiated by the US which focused on economic and social development. A year later, Punta del Este hosted the Eighth Meeting of Consultation, where foreign ministers from the Organization of American States voted to suspend Cuba's membership. Since then, Punta del Este has played convention host to the United Nations and South American republics. Add to that an international film festival and beauty pageant and it's hardly surprising that Punta del Este has gained a reputation as a leading international playground.
Expensive hotels and restaurants combine with a hyperactive nightlife to give Punta del Este a feel of exclusivity and glamour. The list of famous visitors to the town is extensive and includes literary luminaries such as Pablo Neruda and Jorge Luis Borges, as well as members of the British royal family and Hollywood film stars.
No secret to Argentines, whose beachside holiday houses sit alongside top-end hotels and add to the region's charm, Punta del Este's appeal extends beyond that of its neighbors, attracting visitors throughout most of the year. An increasing source of foreign exchange, tourism to Punta del Este and other resort towns along the coast now contributes around a quarter of Uruguay's total economy.
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