Many of London’s most iconic hotels could be snapped up by Middle East investors in the coming years, as a weak pound and favourable taxation makes the UK an attractive market to invest.
The pound’s current weakness against the US dollar, coupled with the fact that Middle Eastern organisations are exempt from paying Stamp Duty and Capital Gains Tax, means that Middle East investors are predicted to flood into London: said the ‘WTM Global Travel Trends’ report unveiled at World Travel Market in London.
Following the recent sale of Harrods to the Qatari royal family for US$2.4 billion,
luxury British brands such as Claridge’s, Grosvenor House and the Savoy are all up for grabs.
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London is seeking to position itself as a new ‘luxury hotspot’ enticing Middle East cash, as domestic demand has hit the rocks thanks to the impact of the recession.
In 2009, Middle East visitors spent US$1.3billion in the UK, and 2010 is expected to see a substantial increase on that figure.
Caroline Bremner, head of global travel and tourism research, Euromonitor International said: ‘The UK is ripe for investment from the Middle East with attractive property prices and the value of the pound. We anticipate visitors from Saudi Arabia and the United Arab Emirates to the UK to increase significantly in the next four years.”
With Middle East investors predicted to snap up London hotels, the UK can expect to see more travellers from the region in the future as hotels cater increasingly to their cultural and religious demands; and Shari’a compliant and non-alcohol hotels could been seen in London in the near future.
The UK Border Agency is currently expanding its Visa Application Centres in Abu Dhabi, Dubai, Riyadh and Jeddah to cope with increased demand.
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