MADRID: Spain revelled in World Cup glory Monday as its conquering football team headed home with the trophy having inspired a red and gold fiesta with their victory in the final over the Netherlands.

As the South African hosts gave themselves a pat on the back for defying pessimistic predictions, the victors savoured the latest chapter in a fairytale of sporting successes.

The squad headed back to Madrid where more than a million fans were expected to line the streets of the capital Madrid for a victory parade on a open top bus.

But the party began immediately after Barcelona`s Andres Iniesta scored the final`s only goal, three minutes before the end of extra time after a match watched by an estimated 700 million people worldwide.

"Iniesta Presidente! Iniesta Presidente!" chanted one group of fans as they marched along the centre of the Gran Via, Madrid`s main thoroughfare in the early hours.

Others imitated bullfighters and waved Spanish flags over passing cars while chanting "Ole!" to celebrate Spain`s first win World Cup triumph.

Prime Minister Jose Luis Rodriguez Zapatero, who will host a reception for the team, said he had "suffered like never before" as he watched the game in Johannesburg`s Soccer City staudium.

The victory came exactly a week after the Spaniard Rafael Nadal lifted the Wimbledon tennis trophy and caps a series of major sporting achievements, including a European title for the nation`s basketball team.

The victories have brought a sliver of joy to a country with here around 20 percent of the active population is unemployed and the economy is forecast to contract by 0.3 percent over 2010 as a whole.

While Zapatero`s administration is keeping its fingers crossed that the feel-good factor will linger, the South African government is also hoping the tournament will bring long-term benefits.

Ever since it became the first African nation to win the right to stage the world`s biggest sporting event, South Africa has had to fend off accusations that rampant crime and lack of infrastructure made it an unsuitable choice.

While there were robberies of journalists and thefts from team hotels, a massive police deployment helped ensure the nightmare vision of fans being gunned down did not come to pass.

The crowning glory for the organisers came on Sunday night when South Africa`s first black president, the now 91-year-old Nelson Mandela, rode onto the field in a golf car, bringing rapturous cheers.

President Jacob Zuma said the World Cup brought "priceless" benefits for bringing South Africans of all races into the stands. He said South Africa could now think about staging the Olympics.

But while the World Cup was marked by a show of unity, massive challenges now lurk in a country still struggling to bridge a racial divide some 16 years after the end of apartheid and a gaping chasm between rich and poor.

In a sign of the tensions bubbling below the surface, immigrants fearing anti-foreigner attacks sought refuge in several South African police stations in Cape Town and surrounding areas on Monday after looting at the weekend.

"The challenge, now, is to ensure that the infrastructure that has been developed, particularly the transport infrastructure, benefits all South Africans, especially the poor," the Nobel Prize-winning archbishop Desmond Tutu.

"We must roll up our sleeves and build homes and classrooms and clinics like never before."

The Dutch won over few neutrals on Sunday with their sometimes brutal approach towards their opponents. Centreback Johnny Heitinga was sent off and seven other players booked by English referee Howard Webb.

The team however will be given a heroes` welcome on their return home with a parade along the canals of Amsterdam planned for Tuesday and a reception with Queen Beatrix.

"We have to be very proud of the team. They had us in raptures for a month," Crown Prince Willem-Alexander told Dutch television.

"They will get the tribute next Tuesday that they deserve (in Amsterdam), and we will all see that it is also quite special to have come second here in South Africa."

BDST: 1816hrs, July 12, 2010