Free State of Galveston made these businesses increasingly difficult to sustain. By the end of the 1950s, this era of Galveston's history had ended. The island of Galveston, which lies on the Gulf of Mexico, held one of the first major settlements in the eastern part of what is now Texas. During the mid-to-late-19th century, it became the largest city in the state. Galveston was also an important national commercial center and one of the busiest seaports in the United States, as the Port of Galveston was able to capitalize on Texas' rapid rise in the cotton trade. Its downtown was known as the
Port of Galveston and two Royal Caribbean ships call the port home year-round, while Disney operates one ship for limited sailings. An estimated 946,000 cruise passengers will sail from the port in 2017, a ten percent increase over 2016. A 2015 economic analysis estimated that cruise passengers injected $56 million per year into the local Galveston economy, an average of $62 per passenger. There are two dedicated cruise terminals. Unlike many other ports, the cruise terminals are not used for other activities, such as conferences or corporate events. Terminal 1 was expanded and improved in 2010, as a condition of Carnival placing their