Sydney, first permanent European settlement in Australia and today the country's largest metropolitan area, with about 4 million residents. Sydney is the seat of state government as the capital of New South Wales (NSW), Australia's most populous and economically important state. The city is a dynamic cultural center with a diversified economy focused on service industries, tourism, manufacturing, and international commerce. Its port is one of the leading centers of intercontinental trade in the Asia-Pacific region. Sydney is located on Australia's southeastern coast at Port Jackson, a large, sheltered, deep-water inlet of the Tasman Sea (part of the South Pacific Ocean).
Sydney was founded as a British penal colony on January 26, 1788. The British government sent ships of convicts from overcrowded British jails to Sydney until the mid-1800s. Today, the stunning natural harbor forms the centerpiece of a modern, cosmopolitan city. Sydney's diverse population, a result of immigration from many other countries, is reflected in the city's vibrant cultural life. Sydney is the top Australian destination for tourists from abroad, and tourism is a leading industry in the city. Sydney hosted the 2000 Summer Olympic Games, which boosted its image worldwide as the gateway to Australia.
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