If anyone's looking for cheap accommodation through the Olympics, just pick a host city. Weymouth hoteliers are reporting a downturn of 95% in bookings for 2012, compared to the same period 2011. Want a hotel in London? Take your pick, they're hardly bursting at the seams either.
I am aware of some of the contigencies in place for the sailing events at Portland & Weymouth: All private boats currently berthed (by contract) in Portland have to move, at their own expense, to another location. Boats that have been chartered for duty during the Olympics will have at least one armed member of the security forces on-board throughout. Those charter skippers that have jumped through the hoops to be retained, although they will be paid up to £2k per day, will be subject to a £10k perday penalty for non-availability. The Olympic Organisers have also commissioned a fleet of brand new RIBs (Rigid Inflatable Boats), so that they can zip around Weymouth bay at taxpayer's expense. No doubt the RIBs will be available on eBay afterwards.
There are also contingencies in place for a complete lock-down of the whole county of Dorset, if a threat is detected. This is not a proposed, targeted lock-down, it will be county-wide