QE2 may leave Dubai and open as hotel

Iconic cruise ship Queen Elizabeth 2 may leave Dubai and take to the high seas again in order to operate as a floating hotel in other ports, the luxury liner's cash-strapped owners said.

Giant property developer Nakheel, which had planned to tug QE2 to a special pier on its man-made Palm Island, said it "has been investigating opening QE2 to visitors as a stationary hotel before work on her refurbishment begins".

"In addition to alternative locations in Dubai, other ports in the Middle East and Africa have also expressed an interest in hosting this impressive maritime icon," remarked Nakheel.

Dubai was scheduled to be the final stop for the QE2 which received a royal welcome when it arrived in the city state in November. Nakheel then said that the boat would be refitted within three years as a luxury hotel.

South African media reported last week that Nakheel's parent firm Dubai World is looking into moving QE2 to South Africa to berth it as a floating hotel at Cape Town's V&A Waterfront.

Dubai World bought the QE2 for about €58 million from US cruise operator Cunard in 2007, when the economy of Dubai and the rest of the United Arab Emirates was growing at a breakneck speed.

But Dubai was hit hard as the global financial crisis brought the rapid growth in its property sector to a standstill, forcing the government to help the debt-ridden Nakheel.

The company cut 500 jobs, or 15 per cent of its workforce, only a few days after taking control of the QE2 in November. It has reportedly cut 400 more jobs recently.