In the first half of the 19th century Pula was a neglected, malaria-ridden and scarcely populated town. Mid-century years brought a change in the modern history of Pula with the construction of the Arsenal and Pula being chosen as the new main navy harbour of Austro-Hungarian Empire. New buildings were being built, a grid of streets and squares was developed, water-supply was set up, overall health and sanitary conditions were improved. The city offered more jobs, which motivated people from different parts of the Empire, and especially from the near-by regions, to inhabit Pula. All in all, it was the time of economic and demographic revival. A defensive system of fortifications was erected, and new city districts were popping up. New steamboat lines were also introduced, and in the second half of the 19th century a railroad connected Pula to Divača. On top of all this, the city got a gasometer, while electricity was also gradually being installed. At the beginning of the 20th century trams were introduced as the new means of public transport. From the moment Pula was named the main navy harbour of the Empire, it was being populated by a great number of marines, sailors and officers. This led to opening of cafes, taverns, restaurants, and hotels. Since the officers were primarily members of Austrian nobility, it was necessary to organize new activities in a city of an otherwise underwhelming social and cultural life. This was why the Navy Casino was built. Also, a city theater was opened. Social and economic development as well as better transport connections would bring along first tourism activities. From the daily press we find out tourists were attracted to the rich Roman history and ancient monuments of the city. At the turn of the 20th century hotel and service industry was on the rise as the city welcomed organized groups of tourists and visitors. First public beaches with facilities were established, and Šijana forest became a favourite place where locals could have a picnic. In 1909 the biggest and most exquisite Palast Hotel Riviera was opened, which was a turning point in the history of Pula’s hospitality sector. Finally, urban life was enriched as many sport clubs and communities were founded.