The period from 1830 to the end of the twentieth century saw five main phases in the development of the Isle of Man's economy. The first, from 1830 to 1863, was a period in which most of the population lived in the countryside and struggled to feed and clothe themselves through the traditional occupations of agriculture, fishing and mining, though it was beginning to be apparent that the Island had its attractions as a holiday resort and, as is underlined in an earlier chapter, as a suitable residence for the genteel poor. A number of factors combined from 1863 onwards (the year of the appointment of Governor Loch) to make the period up to 1914 one of unprecedented growth, expansion and prosperity for the Island which during these years became one of the leading holiday resorts in the British Isles, with Douglas, in particular, expanding to meet the needs of hundreds of thousands of annual visitors. The third period, from 1914 to 1945, was one in which the Island's career as a holiday resort was drastically interrupted by two long wars during which it was used for the internment of enemy aliens and also for military training. From 1945 to 1970 tourism re-established itself as the mainstay of the economy, with manufacturing growing in importance and the traditional industries becoming far less significant. The fifth period, from 1970, was one in which the Island used its unique constitutional position to develop as an international offshore financial centre whose vigorous growth in the 1980s and 1990s replaced the ailing tourist trade as the main source of economic prosperity.

Towns, Agriculture, Fishing and Mining

Towns

In 1831 the census revealed that the Isle of Man, some 30 miles long and 10 miles wide, had a population of 41,751. There were four towns, Douglas, Castletown, Peel and Ramsey, but more than 70 per cent of the population lived in the countryside. Douglas, with 6,776 inhabitants, was the largest and most prosperous town. It had been the centre of the profitable smuggling trade in the eighteenth century and had a reasonably good harbour at the mouth of the combined rivers Dhoo and Glass. The town was concentrated on the North Quay, with few significant buildings in the vast sweep of Douglas Bay except for Castle Mona, the Duke of Atholl's magnificent seaside residence, built in 1804.