New Orleans had discovered the Gulf Coast. With the construction of the Pass Christian and Cat Island lighthouses, the Pass Christian Hotel was built followed by small family-owned hotels and boarding houses that sprang up. Dual resident summer homes were built at Pass Christian, Ocean Springs, and Bay St. Louis. Steamboats plied the coast from Mobile to New Orleans, making scheduled stops at the small towns. Tourism was born!

When Pass Christian was incorporated in 1848, it was already famous for its gallant and gracious charm and the courteous service given to its summer guests and residents. That was the era when the "Pass" had nearly a hundred private piers jutting out a thousand feet into the Sound. The Pass Christian Hotel, had its start in 1831, having expanded its structural growth through the years; and when taken over by the affable hotelier R. H. Montgomery, further embellishments and renovations were made.

Montgomery was its host from 1847 to 1855 and through whose adroit maneuvering the early formation of the Southern Yacht Club was organized within its portals in 1849.

Yachting in the South was born at Pass Christian. The first regatta was promoted at the Pass Christian Hotel, being held on July 21, 1849. Citing a New Orleans' newspaper article from the "Crescent" on that date, "It was a gala day at the Pass. The quiet harbor was thronged with boats, gay with streamers, and manned by athletic crews..."

Responding to the challenge were a dozen contestants. The Stingaree Social Club of New Orleans had acquired a new cabin sloop, resulting in their qualifying for the 25 mile race. Twelve sailboats, representing as many towns, had lined up at the start of the triangular course. Although the Stingarees lost, coming in third, the Eliza Riddle was christened.

The Flirt of Biloxi won the silver pitcher, and the Anna of the "Pass" finished second. All had a wonderful time, and they ended the evening by organizing the Southern Regatta Club with Pass Christian as its headquarters. The enthusiasm resulted in its officers being elected the following summer, with Tom S. Dabney as its first president — thus, Pass Christian became home base for the second official yacht club in the United States which was likened to that of New York City.