It is the most populous Portuguese city, outside mainland Portugal. The Funchal urban conurbation includes the cities of Funchal, Câmara de Lobos, Caniço and Santa Cruz, all on the south side of Madeira. Funchal is located in a unique area on the island; the natural geological features form an "amphitheatre" surrounding the city, which begins at the harbour and rises almost 1200 metres high on gentle slopes.
This provides a natural shelter and was what attracted the first settlers. Funchal is a cosmopolitan and very panoramic city with several parks. There are many hotels, including deluxe properties. Funchal has been Madeira's capital for more than five centuries, and is said to have been so named because of the abundance of fennel (funcho - in Portuguese) growing there.