Luganville, the second largest city in the Republic of Vanuatu, is located on the island of Espiritu Santo and is one of Vanuatu's busiest ports. The main street contains the port at one end, markets and municipal buildings at the other with tourist shops and all-in-one stores in between. The population of Luganville represents mostly indigenous Ni-Vanuatu, but there is also a small population of Chinese and European descendants. After the Japanese attack on Pearl Harbor during World War II, Allied forces used the island as a military supply and support base, naval harbor, and airfield. James Michener's Tales of the South Pacific and the Rodgers and Hammerstein musical, South Pacific are loosely inspired by this isolated island nation. When first visiting, tourists usually remark on the extra wide lanes of the main street running through Luganville. The American base commander there insisted that 4 trucks could be driven along the road side by side. The presence of the Allies on the island inadvertently contributed to the island's diving tourism. The United States dumped most of their equipment and refuse at what is now known as 'Million Dollar Point', an underwater area now a popular dive spot, as is the wreck of the SS President Coolidge, a converted luxury liner that hit a mine during the war. While approximately 40,000 United States military personnel were stationed in Luganville during World War II, it is estimated that between 400,000 and 500,000 military personnel took R & R on the island. Military-constructed Quonset huts still dot the area around town as a reminder of this part of Luganville’s history.
A busy port, Luganville is a transshipment point for copra and cacao. Segond Channel, the body of water off the coast of Luganville behind Aore Island, provides the town with an excellent sheltered harbor.
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