But don't expect to have the suite in September. That's when Sydney will host an Apec conference, and the suite - which costs a tidy A$4,400 (HK$28,500) a night - was booked months ago.

The Asia-Pacific Economic Co-operation forum meeting will bring together 21 of the world's most powerful leaders, and the hotel is keeping quiet about the suite's occupant. 'It will be a head of state,' said public relations manager Elizabeth Masselos. 'But I can't tell you which one.'

Hotels, restaurants and tourist operators are gearing up for what they hope will be a business bonanza fuelled by the 6,000 Apec delegates preparing to descend on Sydney.

But that's not how the deputy premier of New South Wales sees it. John Watkins invited a comprehensive clobbering by saying that the event would bring only traffic chaos and disruption, and should be held elsewhere.

Mr Watkins, who is also transport minister, said the inconvenience caused by the meeting would be akin to that of a visit in February by US Vice-President Dick Cheney, 'multiplied by 50'.

The event should instead have gone to the national capital, Canberra, he huffed. The words were barely out of his mouth before his Nimby [Not In My Back Yard] opinions were howled down as parochial and short-sighted.

New South Wales is run by the Labor Party, and Prime Minister John Howard, of the Liberal Party, wasted no time in scoring a point against his political foes.

'I am just amazed that anybody could say he doesn't want the most prestigious gathering of international leaders Australia has ever seen,' he said.

The state Liberals also stuck the boot in. Shadow transport minister Gladys Berejiklian said Apec was an opportunity for Sydney to showcase its ability to handle big events and that Mr Watkins' comments had embarrassed the city.

'It is little wonder NSW is losing major events to Victoria and Queensland when our own transport minister is whingeing about the logistics of hosting a meeting of global significance,' she said.

Her fears appeared well founded - it wasn't long before Melbourne chirped up that it would be happy to host the event if its historic rival was not up to the task.

The furore shows how Sydney has changed since hosting the Olympic Games in 2000. The Games were a spectacular success but, seven years on, Sydney has lost its mojo: its 4 million inhabitants are worried about a flagging economy, falling property prices, water shortages and crumbling roads.

Apec will undoubtedly bring road closures, protests and heightened security, but it will last for only three days and raise Sydney's international profile. More than 60 per cent of New South Wales' overseas visitors come from Apec countries.

Sydney has long claimed to be Australia's only world city. For that boast to hold true, it needs to start behaving like one.