Pattaya was simply a small fishing village until it was discovered as a beach resort by Bangkok residents in the 1960s. Soon thereafter, American servicemen from all over Southeast Asia, including the United States Air Force base at U-Tapao in neighbouring Rayong province began using the area for "rest and recuperation" (R&R), causing a huge boom in prostitution. When the Americans left following the end of the Vietnam War, the city fell into a crisis. However, modern mass tourism, particularly single men looking for companionship, from Europe and America, brought a new lease of life to Pattaya.
The rapid growth of tourism brought about many negative consequences, such as pollution and petty crime. In 1976, the Pattaya City Act was passed by the Thai legislature, making Pattaya a self-administrating municipality governed by a Council-manager government. However, many argue that this administration system has drawbacks (for example, the mayor may disagree with the city manager). Critics have recommended abolishing the system.
In recent years the city has pushed hard to clean up its image, and family-focused entertainment is increasingly available; however, the core sex-industry has ensured that Pattaya retains its position as one of the world's most renowned party destinations. In 2005, more than 35,000 hotel rooms were available in Pattaya and it has seen a large increase in family tourism in recent years, thanks to efforts to present a more wholesome image. Despite these efforts, Pattaya's sex industry is the city's raison d' etre. Pattaya is an especially popular vacation destination for families from Russia, Eastern Europe and Scandinavia. Pattaya also has a large international expatriate population, especially British and Russian residents.
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