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The British Virgin Islands, as it is known today, has had a checkered history. Island was fancied by major empires and was under occupations of many. The Virgin Islands were initially inhabited by the South American Arawak around 100 BC (though there is an evidence of Amerindian presence on the islands as far back as 1500 BC). The Arawaks stayed in the islands till the fifteenth century, when they were displaced by Caribs, a tribe from the Lesser Antilles islands, after whom the Caribbean Sea is named.
The first European sighting of the Virgin Islands was by Christopher Columbus in 1493 on his second voyage to the America. Columbus gave them the fanciful name Santa Ursula y las Once Mil Vírgenes (Saint Ursula and her 11,000 Virgins), rechristened to Las Vírgenes (The Virgins), after the legend of Saint Ursula.
The Spanish Empire captured the islands via discovery in the early sixteenth century, but never settled there, and subsequent years saw the English, Dutch, French, Spanish and Danish all jostling for control of the region, which became a notorious haunt for pirates.
The Dutch established a permanent settlement on the island of Tortola by 1648. In 1672, the English captured Tortola from the Dutch, and the British annexation of Anegada and Virgin Gorda followed in 1680. Meanwhile, over the period 1672-1733, the Danish gained control of the nearby islands of St. Thomas, St. John and St. Croix.
The British islands were considered principally a strategic possession, but were planted when economic conditions were particularly favourable. The British introduced sugar cane which was to become the main crop and source of foreign trade, and slaves were brought from Africa to work on the sugar cane plantations. The islands prospered economically until the middle of the 1800s, when a combination of the abolition of slavery in the Territory, a series of disastrous hurricanes, and the growth in the sugar beet crop in Europe and the United States significantly reduced sugar cane production and led to a period of economic decline.
In 1917, the United States purchased St. John, St. Thomas and St. Croix from Denmark for US$25 million, renaming them the United States Virgin Islands. The British Virgin Islands were administered variously as part of the British Leeward Islands or with St. Kitts and Nevis, with an Administrator representing the British Government on the Islands. Separate colony status was gained for the Islands in 1960 and the Islands became autonomous in 1967. Since the 1960s, the islands have diversified away from their traditionally agriculture-based economy towards tourism and financial services, becoming one of the wealthiest areas in the Caribbean.
