Round the world sailor Jessica Watson arrives back in Sydney

As she entered Sydney Harbour, escorted by a cloud of small craft and larger vessels, she knew she was leaving behind her the arduous months of solitude behind her and embarking on a life of celebrity - in Australia and beyond.

After fighting a strong southerly wind and 12-foot seas, which added an unexpected two extra hours to her journey, she steered the 30-foot Ella's Pink Lady across the finish line at 1.50pm, becoming the youngest person to sail solo, non-stop and unassisted around the world.

"As a little girl people don't think you're capable of these things, they don't realise what young people, 16-year-olds and girls are capable of," she told the waiting crowds. "But it's amazing what you can do."

Her homecoming, under sunny autumn skies, was watched by thousands of spectators on the water's edge and thousands more in their living rooms, as the event was broadcast live across the country. Helicopters buzzed overhead, a sign writer spelled out "Jessica" on the sky, and a flotilla of supporters took to the water in everything from catamarans to kayaks to accompany Miss Watson to her journey's end, at the Man O War steps next to the Opera House.

After more than 200 days and 23,000 nautical miles without seeing a fellow human being, an obviously overwhelmed Miss Watson fell into the arms of her family, who were clearly relieved to see her back.

The physical effect of the gruelling journey was evident as she took her first steps onto the dock near the Opera House. Miss Watson, who is expected to take at least one week recovering her land legs, shunned a waiting golf cart, and walked gingerly down the pink carpet that had been laid out for her return, aided by her father Roger and brother Tom.

Waiting to welcome her home was and the prime minister Kevin Rudd and premier of New South Wales, Kristina Keneally.

In front of a huge crowd gathered on the Opera House steps, Mr Rudd paid tribute to Miss Watson, calling her "Australia's newest hero".

But the teenager, unfazed by the prospect of disagreeing with the most powerful man in the country, would not accept the compliment.

"I'm an ordinary girl who believed in her dream, you don't have to be someone special to achieve something big," she said. "You just have to have a dream, believe in it and work hard, anything is possible."

Talking about her voyage, she said the hardest times came when bad weather was forecast, but that her own resilience had surprised her.

"When you're in the middle of the night in a storm you can't fall apart, you have to just keep going."

Miss Watson said she was reluctant to leave her boat, which had become "more than a home", at the end of the journey and had enjoyed every last minute of her sail.

"It was so beautiful out there today, I'm sorry that it took me so long and that I kept you all waiting but I was loving it."

Miss Watson, who has been sailing since she was eight, will now have to adjust to life on land, and the celebrity - and wealth - that comes with it. Her camp has already secured contracts worth an estimated $1m including $700,000 (£430,000) for telling her exclusive story to one of Rupert Murdoch's Australian newspapers and becoming an "ambassador" for his company News Ltd.

Then comes a whirlwind nationwide "Meet Jessica" tour. Her book True Spirit: The Aussie Girl who Took on the World, is due out in July and there is also a documentary in the works. Her bank account will also be swelled by the Jessica Watson brand baseball cap, posters and souvenir packs for sale on her website. The local media has already declared her a shoe-in for the Young Australian of the Year Award, an accolade that will further propel her rising star.

Her fame, which has been slowly building during the course of her voyage, has reached fever pitch in Australia, a nation that loves a successful sportsperson.

But the trip had not always been such smooth sailing. The teenager from Buderim in Queensland set off on October 18 under a cloud of controversy after her boat collided with a tanker on a trial run to Sydney from Mooloolaba.

Critics questioned whether she was experienced enough to take on the treacherous journey and whether her parents were wise to let her go, but she told naysayers: "The one thing I won't accept is when someone calls this reckless. This is years and years of planning and preparation. We haven't just jumped into this."

The first few months of the trip went well, although the lack of human contact took its toll. At times, Miss Watson admitted to being "pretty moody and a little homesick" and in April wrote on her blog: " I think I am ready to come home now. "Love it out here still but I think enough is enough."

But harder times were to come. After passing Cape Horn and the notorious Cape of Good Hope without incident, Australian waters presented her biggest test. Swells as large as a four-storey building and towering "like liquid mountains" pounded Ella's Pink Lady, knocking the boat onto its side more than six times. Miss Watson had to strap herself into her bunk and put on a crash helmet to prevent being injured in the wild seas, which slowed her progress for more than a week.

Sailing experts announced that Miss Watson had not sailed far enough above the equator to beat the existing record set by Jesse Martin, a fellow Australian, who sailed around the world in 1999 when he was 18.

Her feat was remarkable, but it would not be officially recognised by the World Speed Sailing Record Council, they said.

Miss Watson's team shrugged off the argument, saying that since the WSSRC abolished its under 18 category after Mr Martin's journey, Miss Watson knew she would not be considered to have broken the world record.

The sailor, not one to dwell on the negative during her time at sea, responded on her blog: "Call me immature but I've actually been having a bit of a giggle over the whole thing.

"If I haven't been sailing around the world, then it beats me what I've been doing out here all this time!"

But the criticisms kept coming. Callers to Australian talkback radio called her trip "pointless and masochistic" and complained that the outpouring of adulation directed at Miss Watson, for completing a reckless journey, was over the top.

Then, in the final days of her voyage, the wind picked up again, her generator engine started playing up and her toilet broke. With her mind fixed solely on her return, she patched up the engine with a bit of wire but gave up on the toilet.

Writing in her final blog, Miss Watson, who arrived home three days before her 17th birthday, reflected on what she would miss about life at sea.

"I'm going to miss the kick I get from overcoming challenges by myself, flying along in the dark. A new sunset every night and the time I always take to watch it. I'm going to miss watching the waves and sea. I know it's ¨been nearly seven months and I'm still not bored by it."

Now back on dry land she is desperate to get home to the Sunshine Coast and have a jog on the beach.

After so long subsisting on prepackaged meals, the occasional freshly caught fish and a steady supply of chocolate, Miss Watson said she was craving fresh fruit, salad, a chicken burrito and her mum's pavlova.

She also plans to get her driving license, finish school and spend some time "being a normal teenager".

Trip by Numbers

Days at sea: 210
Litres of water: 150
Cartons of juice: 160
Tins of Spam: 32
Tins of tuna: 64
Tins of pineapple: 32
Chocolate bars: 576
Freeze dried ready meals: 290
Servings of porridge: 96
Jars of bacon bits: 20
Bottles of dishwashing liquid: 6
Hits per day on her blog: 400,000
Pressure cooker: 1
Books: 30
Blue whales spotted: 1