By Katie Hunt

http://www.bbc.co.uk/ It took Mamoun Al-Halabi almost four years to transform a damp and dilapidated Ottoman house on a narrow lane in Damascus's old city into a chic, five-star hotel.

To prevent damage to the ornate 17th Century wall paintings he made his workers use toothbrushes.

His wife scoured Syria to find antique furniture and fittings and commissioned local craftsmen to replicate centuries-old woodwork and chandeliers.

Once finished, he spent six months sleeping in each of the 10 rooms to iron out any problems guests might have encountered.

"It was like a tunnel. You didn't know when you would come out," he says, gesturing at the tranquil sun-dappled courtyard, babbling fountain and the opulently decorated rooms beyond.  But his efforts paid off.  He says the hotel has been almost fully booked since it opened a year ago.

Beit Al-Joury is one of 10 boutique hotels to have opened in Damascus's old city in the past two years. Many more are in the pipeline as upwardly-mobile Syrians, such as Mr Al-Halabi, take advantage of the country's newly liberalising economy.

Long-isolated, the country has embarked on Chinese-style market reforms in recent years to improve its economic position.

The oil reserves that the socialist state had relied upon are dwindling and the economy's other mainstay, agriculture, has been hit by drought.

The government is encouraging investment in tourism to diversify its economy and if the European tour groups thronging the old city are anything to go by, it is having some success.

Certainly, Damascus has much to offer visitors. It claims to be the world's oldest continuously inhabited city as the Roman columns, church spires and minarets dotted throughout the old town bear witness. At its heart, is the 8th Century Umayyad mosque.

Built on top of a Roman temple dedicated to Jupiter and Byzantine church, it is home to the tombs of John the Baptist and Islamic warrior Saladin.

The mosque is flanked by a beguiling maze of narrow lanes where craftsmen make parquetry woodwork boxes inlaid with camel bone and weave gold-threaded brocade on hand-operated looms.

Tired wanderers can sip freshly-squeezed pomegranate juice or enjoy a cone of pistachio-encrusted ice cream from the nearby souk.

Damascus is also less conservative than many might imagine for a country so often at odds with the West.

On a Saturday night in October, the old city is abuzz with young Syrians descending on the old city's bars, restaurants and internet cafes to smoke shisha water pipes, play cards and check their Facebook profiles.

 The rebirth of the old city allows younger Syrians, as well as tourists, to appreciate Damascus's rich heritage.

From 1995 to 2005, more than 20,000 inhabitants left the historic centre as they sought modern housing and facilities.

"There's a new generation of Syrians who don't know anything about [these beautiful buildings]," says Arabi Shaher, who works at Beit Zamen, the largest boutique hotel to open in the old city. Other ramshackle buildings have been turned into elegant restaurants and art galleries. However, there are fears that the traditional character of the old city could be lost.

Along Straight Street, the city's main artery since Biblical times, pavements are being dug up and trees planted as part of a beautification drive. Stalls in the souk have new wooden shutters and new lamp posts have been erected. But mostly, the renovation of the ancient houses has been welcome.