Zhu Rongjing (R) and and her little brother Zhu Youyi paste a paper-cut on a window at their home, an "Olympic Homestay" household, in Shishahai, downtown Beijing, July 11, 2008. [Xinhua]

"The accommodations don't have the luxury of a hotel, but they are sure part of genuine Beijing life," said Ron Rice, from Washington D.C..

Beijing's tourism authority said travel agencies from Japan, the United States, Canada, Chile and Singapore had considered renting rooms from these families during the Games.

But due to the short marketing time, visa problems and transportation, most of the homestay guests would probably be Asians, said Zhao Xin, director of the Olympic Program of the China International Travel Service.

Those interested could apply at their home travel agencies, he added.

The city expects to see more than 500,000 overseas visitors over the Olympics, and hotels prices are up to four times higher than usual for the time of year.

The city has a total of 660,000 visitor beds. By Friday, about 78 percent of the five-star hotels were booked, but less than half of hotels with four stars or fewer were reserved, said the tourism administration.

Staff with the www.Chinahomestay.org, which plans to recruit 350 host families for a four-week period surrounding the Olympics, said they had been seeing an increase in demand.

"Many visitors who come to China don't want to live alone, and they want to communicate with the local people," said a woman at Chinahomestay.org who gave her name as Chen.