Saint Peter Port

Saint Peter Port is where the Channel Islands' two great exports—offshore finance and literary exile—concentrated their influence. The harbor, protected by Castle Cornet since the 13th century, developed into Guernsey's commercial nucleus when the Anglo-Gascon wine trade made protected anchorage valuable. Today, financial services account for 37% of GDP, with banks, fund managers, and insurers clustered in the town where 20% income tax and zero capital gains tax create regulatory arbitrage with the UK mainland. Victor Hugo arrived in October 1855, exiled for opposing Napoleon III, and spent fifteen years in Hauteville House writing Les Misérables, Toilers of the Sea, and other masterworks while overlooking the harbor from his study. The house, donated to the City of Paris by his descendants in 1927, operates as a museum and literary pilgrimage site. Castle Cornet's 1672 lightning strike destroyed the magazine and keep, transforming military stronghold into heritage attraction now housing multiple museums. The present harbor, constructed 1853-1874, handles ferries and cruise ships disgorging day-trippers into cobblestone streets designed for foot traffic. With Guernsey's population at 64,781 (December 2023), St Peter Port contains the highest density while remaining the island's only town. By 2026, the parish faces familiar tensions: rising property prices driven by tax-advantaged finance professionals, heritage preservation against commercial development, and questions about whether literary tourism can compete with banking's economic gravity.