São Martinho, initially a sparsely populated agricultural area, gained importance in the 16th century as Madeira's sugar industry flourished, requiring more land for cultivation.

Geographically, São Martinho is characterized by its coastal location, rising hillsides, and fertile valleys, contributing to its suitability for agriculture and residential development.

The parish of São Martinho, encompassing various localities, has experienced substantial population growth in recent decades, driven by urbanization and tourism development.

Traditionally, São Martinho's economy was based on agriculture, particularly sugar cane and bananas, but tourism and service industries have become increasingly dominant since the late 20th century.

The local economy benefits significantly from the presence of hotels, restaurants, and other tourist-oriented businesses, which contribute substantially to employment and revenue generation.

São Martinho is renowned for its proximity to the city center of Funchal, Madeira's capital, offering convenient access to essential services and cultural attractions.

Culturally, São Martinho retains some traditional practices, including religious festivities honoring its patron saint, Saint Martin, albeit influenced by modern lifestyle changes.

The local gastronomy features typical Madeiran dishes, heavily influenced by seafood, tropical fruits, and locally produced wines, reflecting the island's rich agricultural heritage.

Formosa Beach, located within São Martinho, is the largest free public beach in Madeira, drawing significant numbers of tourists and locals alike.

The Lido area in São Martinho offers swimming pools, promenades, and leisure facilities, establishing it as a popular tourist destination in Madeira.

Although not a UNESCO World Heritage Site itself, São Martinho is geographically close to Funchal, which is part of the Laurissilva Forest UNESCO site, boosting tourism in the wider region.

São Martinho is directly connected to Funchal through modern road networks and public transportation, facilitating movement and economic integration.

The area’s political significance lies in its role as a key urban and economic center within the municipality of Funchal, influencing local government and development policies.

São Martinho hosts numerous residential complexes and apartment buildings, indicating its transition from a predominantly agricultural area to a more urbanized environment catering to a growing population.

Local festivals, particularly those associated with religious celebrations, showcase traditional music, dance, and culinary delights, preserving elements of Madeiran folklore within São Martinho.