Port Vila is the capital and largest city of Vanuatu. Situated on the south coast of the island of Efate, in Shefa Province, the city population at last census (1999) was 29,356, an increase of 55% on the previous census result (1989). This suggests a 2007 population of about 40,000 or around 65% of the province's population. Port Vila is the economic and commercial centre of Vanuatu. The area occupied by Port Vila has been inhabited by Melanesian people for thousands of years. In 1606, the first Europeans arrived at the island, led by Pedro Fernández de Quirós and Luis Váez de Torres.