By Debbie Mason

updated 11:09 a.m. ET July 17, 2008

Even if it weren't hosting the 2008 Olympics—which will begin on August 8 at precisely 8:08 p.m. local time—China would still be making headlines this summer. The latest setback is a massive algae bloom that's choking the coastline of Qingdao, which will host the Olympic's sailing events. All eyes are on the Chinese government as it works feverishly to clear the water in time for the first race, on August 9.

Regardless of the algae invasion, visitors will find that this city of 2.7 million retains its charms. Long before it was named the Olympics' sailing city, Qingdao was a popular, and strategically important, port town. But it was the Germans, who took over after the Boxer Rebellion of 1897, who lent Qingdao a remarkable European style, particularly in the Badaguan area west of the city that is now a favorite with Communist Party officials.

There's more than just 19th-century European charm in Qingdao. Modernity has arrived in a big way, and it has its share of straight, wide boulevards and concrete blocks that are typical of most Chinese cities. The differences here, though, are the unmistakable whiff of sea air wherever you go and the distinct lack of traffic jams—though how long that lasts is surely just a matter of development.

Just over an hour away by plane from Beijing, the coastal city makes a welcome getaway from the capital's chaos and smog, even if it's not on your Olympic agenda. Spread around a large natural bay, the seven-million-strong population is almost blasé about the upcoming international regatta.

"Oh, sure we're excited about it, but our city would do fine even without the Olympic Games," says Wang Hui, Yinhai International Yacht Club’s chief liaison officer. "Ours is a beautiful city, and it would develop anyway."

From April on, Olympic teams began arriving to begin practice rounds, "to get themselves familiar" with the conditions in Qingdao before they return in August for the tournament proper.

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Assuming the algae is cleared away in time, there's yet another issue that concerns some sailors: the stagnancy of the air. Will the lack of a reliable summer wind pose problems for the teams?

"Well yes," says Wang, completely unfazed by the question. "The lack of wind is a problem, in fact I don't really know why Qingdao was chosen to host the sailing!"

With just seven large five-star hotels in the city (including the Sea View Garden Hotel), it will be a a challenge to accommodate the sailing teams, staff and spectators, especially with the concurrent hosting of Qingdao’s annual international beer festival. The festival also opens one day after the Olympic opening ceremony.

"We are always really busy during the beer festival, and in fact half of our rooms have gone already to people coming for that," says one receptionist at the Shangri-La Hotel, which opened a whole new wing in March because of the Olympics. She adds, with equal candor, "We haven't even decided what our prices are going to be for that period, but they will be at least four times what they are now."

Though hotels we checked with say there are plenty of rooms free at the moment, it's likely visitors to Qingdao this August may have to look for cheaper options if they leave booking too late.

Jerry Driendl / Getty Images Surrounded by mountains, Qingdao's most famous is Laoshan (old mountain). Just 20 miles or so out of town and facing the Yellow Sea, the Taoist mountain produces spring water that can be found all round China. Tourist brochures will tell you that wherever you go on Laoshan, you can see water. The mountain can be seen in half a day, but it's best to take some time to enjoy it.

There is plenty to do in and around Qingdao, whether it’s to wander and marvel at the old streets or get out of the city and take to the mountains, which include the tallest of China’s entire coast, Laoshan. Or, you can just sit by the road eating the heaps of cheap, fresh seafood and drinking Qingdao’s most famous asset, Tsingtao Beer, on Yunxiao Lu.

Every Qingdao-an you speak to, beer drinker or not, has a quiet pride in their city's homegrown beer. It is available poured from the tap straight into plastic bags on every street in the old town. The bottles available in Chinese restaurants overseas, while perfectly drinkable, can't hold a candle to the fresh stuff. A tour of the Tsingtao Brewery is an evocative trip back to its early days, when German colonists founded it in 1903

Even in the face of crisis, most Qingdao-ans seem optimistic that the Games will go on. Then again, they're a famously relaxed people. There’s no staring at foreigners, or approaching strangers to practice their English or ask for photographs. Although minimal English is spoken, there’s no surprise or laughter when the odd foreigner does manage to produce a bit of third-rate Mandarin, just a willingness to help that isn’t forced.

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