Valencia has been chosen to host the 32nd America’s cup. It is the first time the blue ribbon event of yachting has been held in Europe and, in a further break with tradition, it will be held over a three years leading up to the final race off in 2007. This is a tremendous accolade for Spain’s third largest city and raises the question: will the America’s cup have the same impact on Valencia as the Olympics had for Barcelona?

The early signs are good; there is over €1.5 billion worth of infrastructure investment scheduled over the next few years including a high speed train link from Madrid to Valencia planned for completion in early 2007. Several projects have already been completed, in time to accommodate the first America’s Cup teams that start to arrive in 2005.

Here are opportunities to cash in on the tourist bonus expected during the three year build up to the final race-off in 2007, through lettings and property price rises. However, many of the town planners see the America’s cup as merely part of the beginning of a long-term process to raise the profile of Valencia and bring it in line with Barcelona as a tourist and cosmopolitan city. With better climate, a longer stretch of coastline and more diversity inland the goal is to supersede Barcelona as Spain’s second city.