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a charter on behalf of a wealthy fashion magnate who planned to use the 112-passenger vessel to provide accommodation for friends and business associates during the Games.

When luxury cruise ship SeaDream I was berthed alongside HMS Belfast at Tower Bridge a few weeks ago, there were hopes that its sister, SeaDream II, would be in the Thames next year for the London Olympics.

A yacht broker I spoke to was confident he would be able to agree a charter on behalf of a wealthy fashion magnate who planned to use the 112-passenger vessel to provide accommodation for friends and business associates during the Games.

The deal appears to have fallen through, because Travel Weekly reports today that SeaDream's planned visits to the UK and the Norwegian fjords next year, before and after the Olympics, have been cancelled.

Company president Bob Lepisto is reported as saying that failure to secure an Olympic charter was a key factor in the decision. "We will now have two Black Sea itineraries, as well as multiple Croatia and Greek island cruises," he said - adding that the company has more demand for charters in the Mediterranean than they can meet.

Travel Weekly claims that fees for berthing ships in the Thames during the Olympics have "sky-rocketed, making it uncommercial for lines to base ships in the Thames as had been hoped." They say Azamara Club Cruises have yet to confirm that one of their ships will be brought to London.

The German ship MS Deutschland, operated by Peter Deilmann, will be based in West India Docks and is offering three nights' accommodation for £4,336 per person.

However, Port of London Authority spokesman Martin Garside told me they expect a number of ships in London for the Games, with berths at Tower Bridge, Greenwich, Tilbury and Northfleet, and also in the Royal Docks and West India Docks.

He denied fees were being raised. "All PLA charges on the tidal Thames - ie pilotage and conservancy charges, berthing fees, use of the 'Welcome' floating passenger terminal - will be the same as normal."

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