In the 18th century, with the battles lost, the Ottoman Empire continued to lose reputation and power. At the beginning of the 19th century, industrialization in Europe fasten the downfall in Ottoman trade, and the Ottoman Empire was unable to find the center to develop its industry. When the world was renewing and developing in the industry, the Ottoman economy wasn’t able to keep up with the process and try to keep its existence with a closed economy based on agriculture. Compromises given to other countries caused administrative, financial, social problems inside the Ottoman Empire and this situation caused the Ottoman Empire to become a free open bazaar for Europe. When the Ottoman Empire started to regress, beautiful days were waiting for Smyrna on the horizon.

In the 19th century, to stop the bad going, Ottoman Empire forms a movement for westernization which is called ‘’ The Rescript of Gülhane’’. By this, in fact, religion and moral compass were provided for non-muslims, also to live more easily and safely. This progress was like invitations that the Ottoman Empire gave to non-Muslims and foreigners. In those times Izmir became the most favorite place for non-Muslims and foreigners. The cosmopolitan structure of the city, kept Izmir distinguished from the period’s Ottoman Empire who was using pressure and authorization. Even Abdülhamit The Second’s harsh regime over the government couldn’t enter Izmir. Unfortunately, even though Izmir was sparkling, each day passing the Ottoman Empire became dependent on Europe and exploited by many countries.

With the opening of Izmir port in 1875, the commerce in Izmir got to liven up and it became the 2nd city that has the biggest economical volume in the Ottoman Empire. Izmir staying out of the Ottoman’s closed economy, cultural and social system, embracing people from different cultures, religions, and socio-cultural groups, continued its art and commerce activities at its ultimate level. Also, Ottoman Inns showed in those times because of need originated from intense commerce in Izmir.

However, with the filling of the docks, Kemeraltı Bazaar started to lose its importance for Levantines, and they carried their working places to the Alsancak area. In those times although Turkish merchants tried to make work the places which Levantines had left, Kemeraltı started to fall out of favor. Just after the salvation of Izmir on 13 September 1922, during the big Izmir fire, Kemeraltı lost most of its important historical structures and entered the period of regression.