London may have just decided to join the qualifying race for the Olympic Games 2012, but Athens, host to the world's largest sporting event in 2004, is now facing the last sprint to the finish line.
While the Olympic Games are essentially a celebration of humanity and a showcase for human endurance, the two-week event has become an opportunity not only for cities to attract significant investment for urban regeneration and local infrastructure, but also to market the destination's tourist and convention attractions to a global audience. For the host city, the legacy of the games is almost as vital as the event itself.
Athens's ability to fulfil the requirements of the games, let alone maximise this potential, has been called into question, however. The Greek government delayed the beginning of preparations while it focused on converting to the euro, a decision that caused some alarm on the International Olympic Committee. Athens is too polluted and the traffic overwhelming, said some, while others claimed the city's size and infrastructure could never support the demands of such a vast event.
The city itself, however, is confident that the pain of the present, including the web of scaffolding that currently shrouds the city, is well worth it for what will be unveiled next summer. "Everybody is complaining at the moment," says Michael Koth, general manager at the five-star InterContinental hotel. "It is a frustrating time, but the city will be ready in the end. It might be a close call, but the Greeks are tremendously committed."
In 2001 the city opened a new airport, which is now used by 16 million passengers a year and which will be linked to the new light-rail and significantly extended metro system - both as yet unfinished. Some 120km of new motorways and 90km of upgraded motorways are also planned to be completed in 2004.
One source of concern has been over the ability of Athens to accommodate the 10,500 athletes, 5,500 team officials, 199 national Olympic committees, 45,000 volunteers, 21,600 media representatives, and 5.3 million ticketed spectators who will attend the two-week event.
Athens is restricted in size and development by the presence of mountains on one side and the sea on the other. The government has also historically prevented, rather than encouraged, the development of new hotel stock, while bureaucracy and the local hotel association have also created barriers to unwanted competition.
A ban on new hotels, enforced in the mid-1980s, was lifted only in December 2000 when it became apparent there were not nearly enough beds to fulfil the contractual requirements of the games - 65,000 beds for the Olympic family (athletes and their support teams) alone. Even when licences were granted to developers, however, the prohibitive price of land meant hotel development remained limited.
The last-minute nature of Athens's realisation has led to creative solutions when it comes to housing all those who will attend the games. About 18,000 beds are expected to be provided in private homes, while another 18,150 will be housed in apartments and private rooms up to 160km away from Athens - including on the islands.
More spectacularly, however, 10,000 beds, including 2,500 for the Olympic family, will be provided by 11 cruise ships - including the brand-new
Queen Mary II - which will dock in Piraeus harbour for the duration of the games. The development of the port for this purpose means that Athens will be the first city in the Mediterranean with a centralised system of sewage treatment, water supply and rubbish recycling. This, the city hopes, will not only work as a model for other Mediterranean ports, but will act as a magnet for lucrative cruise business long after the games are finished.
"Before 11 September we filled 30,000 roomnights with US cruise business," says Koth. "People's experience of the ships during the games may help encourage the growth of a greater European cruise market."
When it comes to housing people in hotels, Greece's ministry of development has been more reserved, however. The Olympic Organising Committee has booked, with a deposit, 85% of the city's rooms for the needs of the Olympic family. Rates have been agreed to avoid unreasonable price inflation.
The emphasis overall, however, has been on upgrading and extending existing stock rather than expanding the market - a strategy that has met with mixed reactions.
A report by hotel consultants PKF pointed out that "while major additions to a city's hotel supply need to be proven to be sustainable, long-term vision can be clouded by short-term protectionism. And the lack of new supply, which normally acts as a catalyst for acceleration in demand, will leave Athens constrained in terms of future tourism."
This opinion is reinforced by the experience of Barcelona, where graded hotel room supply increased by about 30% between 1990 and 1992. While occupancy dropped initially during and after the games, it rose again steeply in line with the city's new popularity after the event.
Others believe that creating new rooms for a one-off event is short-sighted. "Never build a hotel for a special event," says Chris Rouse, of hotel consultants Insignia. Local hoteliers are also more pragmatic. "One swallow doesn't make a summer," says Koth at the InterContinental. "I'm sorry to put it so bluntly, but it's only two weeks of the year."
Spending on refurbishment
To encourage midmarket and budget hotels to improve the quality of their properties, the government has offered €300 (£214) per room for refurbishment. At the top end, the Grande Bretagne, perhaps Athens's most renowned hotel, has spent $70m (£42.8m) on a total refurbishment, including the addition of a spa and rooftop restaurant. The five-star Hilton was closed for 15 months for a $96m (£58.7m) extension and refurbishment, while the 543-bedroom InterContinental has also carried out extensive renovation, including the refurbishment of all public areas.
Athens is fighting an uphill battle, however. The city is not a traditional tourist destination, with most visitors just passing through on their way to the islands. Greece has also suffered the same malaise as the rest of the world due to recent global events. The war in Iraq and consequent anti-war protests in Athens reduced tourism even more after the USA issued a warning against visits to the country.
Many of the city's hoteliers feel that Athens has a potential for tourism as yet unrecognised, and indeed unsupported, by the government. A long-awaited convention centre has been promised post-games, which should provide a boost to the local hotel market. "The Greek individual market does not sustain five-star hotels," says Koth at the InterContinental. "Only 23% of our clientele are Greek, while more than 75% are international or groups."
Currently, the meetings market provides only about 3% of total roomnight demand in the city. Most feel it's an undeveloped opportunity, as is the short-break market. Traditionally, the Greek islands dominate the country's tourism, but many hoteliers in the city feel that with budget airlines and the new airport, short breaks are a frustrated opportunity that needs to be satisfied.
Whether Athens will harness the potential of the games and create a legacy that will build both the city's reputation and tourism for the future remains to be seen, but whatever the outcome, the world will be watching.
Vital statistics
The Olympic Games 2004
The first documented Olympic Games were in 776BC. They were held in Olympia, after which they were named. The Modern Olympic Games were revived in Athens in 1896.
When: 13-29 August
What: 28 sports and 301 medal ceremonies
Where: 38 Olympic venues
Who: 10,500 athletes and 5,500 team officials, 199 national Olympic committees, 45,000 volunteers, 21,600 media representatives, four billion TV viewers, 5.3 million ticketed spectators and more than 45,000 security personnel
How much: 68% of tickets (3.6 million) will cost up to €30 (£21.60). The average ticket price of €35 (£25.20) is 34% cheaper than at the Sydney Olympics in 2000.
The Paralympic Games 2004
When: 17-28 September
What: 19 sports and about 500 medal ceremonies
Where: 21 Olympic venues
Who: 4,000 athletes, 2,000 team officials, 128 national Paralympic committees, 15,000 volunteers and 3,000 media representatives.
The Grande Bretagne
Constitution Square, 105 63 Athens, Greece
Tel: 00 30 21 0333 0000
Web: www.hotelgrandebretagne-ath.gr The Grande Bretagne is the grande dame of Athens hotels, but it's only this year that it has retaken its place among the world's most prestigious and well-respected properties.
Following some years of neglect by previous operators, the now 327-bedroom hotel was closed from November 2001 to March 2003 for a $70m (£42.8m) restoration and refurbishment.
The transformation is dramatic. After gutting the entire building, the hotel is now a shrine to the kind of opulent luxury London's Dorchester would envy. Curtains are heavy, tables gilted and doorways are as high and wide as one would expect from a former palace. The interiors don't shy away from dramatic patterns and bold colours - particularly red and gold.
On entering the hotel, guests are confronted with a slick reception desk, huge vases of fresh flowers and elegant and accommodating waitresses in black cocktail dresses slashed to the thigh. A pianist plays every night to the kind of crowd who like to be seen, and while the hotel's spa and rooftop restaurant have yet to open, the extent of media attention (three television crews covered the opening) and local patronage to date indicate demand will be high.
A new management contract has been agreed by owners Lampsa Greek Hotels Company and CIGA Hotels Greece, a subsidiary of Starwood Hotels & Resorts Worldwide. The Grande Bretagne will be marketed as part of Starwood's Luxury Collection brand for the next 25 years.