MADRID (AP) - Tens of thousands of Spaniards were devastated after Madrid lost its bid to host the 2020 Olympics on Saturday amid fears about the country's economy and unemployment rate.
It was the third straight time the capital failed in attempts to win the Summer Games. The International Olympic Committee meeting in Buenos Aires eliminated the city in the first round of voting, with Istanbul and Tokyo left for the final round.
"I am in shock," said 42-year-old Marta Castro, a housewife with three children. "I thought that it was a tiebreaker to see which city won and it turns out that it was to see which lost, and Madrid went out first. How sad! I hadn't imagined it."
Once considered a long shot because of Spain's deep financial crisis, Madrid's bid gained momentum in the run-up to the IOC's vote by arguing the games would stimulate economic growth.
But the crowd watching on large TV screens at Madrid's Puerta de Alcala square was disheartened when the news was announced at 9 p.m. (1900 GMT, 3 p.m. EDT), just when the streets of the city, known for its late dinners and even later night life, began to fill with nocturnal revelers.
The timing helped swell the large crowd already in place next to Retiro park, where Madrid had planned to hold beach volley matches during the Games.
But as a dark cloud appeared in time to dampen the spirits of the crowd with a light shower, the party-like atmosphere was thoroughly ruined when IOC President Jacques Rogge announced that Madrid had been eliminated after a run-off vote with Istanbul following their tie in the first round.
A deathly hush descended on the crowd and the music came to a halt. The presenters on the stage thanked the crowd for coming and bade everyone good night. People immediately fell silent and started drifting away.
Madrid has now lost in its bids to host the Summer Games in 1972, 2012, 2016 and 2020.
Madrid was aspiring to become the second Spanish city to hold the Olympics. Barcelona was able to transform itself from a postindustrial town into one of Europe's biggest tourist destinations through the interest generated by the 1992 Summer Games.
The Madrid bid had linked the economic recovery of the capital and the rest of the struggling country suffering from a double-dip recession and 27 percent unemployment to winning the right to hold the Games, saying it would attract much-needed investment.
Many Spaniards hoped the chance to host the world's biggest sporting event would have created jobs and encouraged investment after the economy had been in recession for most of the past four years.
But Madrid's "responsible," thrifty bid based on having 80 percent of its venues already built wasn't enough to convince the IOC members.
The economy wasn't the only problem. Questions over its shaky anti-doping record hurt its past bids, and even a new anti-doping law passed recently apparently didn't assuage all the lingering concerns.
"There's little to say, we didn't expect the tie. This has been horrible to go through," women's water polo world champion, Jennifer Pareja, who had accompanied the Spanish delegation to Argentina, told Spanish television. "Nobody imagined this. After all this work. I can't even talk about it."
Joseph Wilson contributed from Barcelona.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)