By Jill McGivering BBC correspondent in Savannah, Georgia

Savannah residents are barricading their homes against demonstrators

The downtown squares of Savannah, close to the riverfront, have a picturesque Southern American charm - the paved precincts set about with cafes, art galleries and restaurants.

But as the start of the G8 summit approached, local businessmen in this upmarket, usually sleepy tourist town seemed dismayed.

Despite the fact it is still tourist season, shops and businesses which would normally be alive with tourist trade were closed or almost deserted.

Some were even boarded up, just in case.

'Paranoia'

Rusty May is a local artist who supplements his income by cycling tourists around Savannah.

I found him and a fellow rickshaw rider sitting idle, waiting in vain for customers in a silent square.

"People are scared off," he told me.

"The regular tourism that would be here at this time is scared away, mostly by paranoia."

The actual venue of the meeting, Sea Island, is completely sealed off

Part of the concern is about potential violence and the damage to business caused by possible anti-globalisation protests.

But the anti-terrorism security crackdown is making people anxious too.

The police presence is heavy and visible. As we talked, helicopters buzzed overhead.

Local caf� owner Joe Clifford said his revenues were down about 40%.

He was gloomy about the impact of G8.

"I don't think it's good for Savannah," he said.

"It just cuts into the tourist season. A lot of people are closing up. They think the only people who are coming in are security personnel and protesters."

The exclusive venue for the actual summit is Sea Island, more than 100km from Savannah and almost totally sealed off.

The US has given this event a top security rating and the area is saturated with police and counter-terrorism personnel.

Security will also be a key theme of the closed door meetings in the next few days. Enhanced co-operation, for example, in the fight against terrorism and the more specific debate about instability in Iraq and plans for reconstruction once the transfer of sovereignty is complete.

UN resolution

That, against the backdrop of the forthcoming vote on a new UN resolution on Iraq.

A Methodist church tries to make G8 summit visitors feel at home

President Bush is also expected to present a revised US plan for political reform in the Middle East.

In the aftermath of the US-led invasion of Iraq and at a time of growing cynicism about US motives in the region, the Bush administration is thought to have scaled back an earlier plan - the Greater Middle East Initiative - to a more modest proposal.

The emphasis has shifted from imposing mechanisms from outside the region to a more palatable attempt to foster democracy from the ground up, including proposals for supporting non-government democracy groups, for literacy programmes and funding small businesses.

But reaction to the plan from within the region is still uncertain.

Saudi Arabia and Egypt, for example, refused invitations to attend this week.

Priorities

Other topics and other regions will struggle to compete with the Middle East for the G8's attention.

African leaders meet delegates on Thursday to press their concerns, from debt relief to peacekeeping and support for the on-going fight against the spread of HIV/Aids.

There was some disappointment at the end of last year's summit that pledges on Africa were too vague and ill-defined.

One complaint was that the pressing concerns of the developing world were being eclipsed by political wrangling over Iraq.