Dragon City was the closest City to the Dragon Isles, under the direct control of the Dragon Clan, and thus Damon needed to pass through Dragon City to get to his initial destination.
The City could be called a massive tourist attraction. This was due to the fact that the entire City was situated on a gigantic island, which allowed tourists to see and experience the beautiful clear beaches and incredible sight-seeing nearby.
The City could be called a tourist metropolis, as it had every tourist attraction known to man, from the aforementioned beaches, to daily plays, cinemas, a vast array of restaurants, gladiator arenas and many more.
Due to the fact Dragon City was located directly next to the Dragon Isles, it was a strategic location that allowed for the Dragon Clan to exert their influence on the world without using their combat power.