European tourists were enjoying the sights of The Dubai Mall yesterday but not all of them were carrying shopping bags.
A strong dollar has made shopping in the emirate expensive for visitors from the euro zone and other countries where the currencies have depreciated this year.
That may become more pronounced following the latest move by the US Federal Reserve to raise interest rates.
“With sterling being hammered by the US dollar we haven’t considered Dubai as a shopping destination,” said Mr and Mrs Hill from Carlisle in the UK.
They said they were staying at the Zabeel Saray on Palm Jumeirah, which was an all-inclusive package so they avoided the high price F& B options.
“It’s nice to see shops like Bloomingdale’s that aren’t in the UK, but the prices are eye watering. We looked at an Omega watch and it was nearly a third more expensive than if we bought it at home.”
Another European tourist agreed that Dubai was now more of a sightseeing destination that a shopping stop.
“I’m on a cruise so only here for two days,” said Sabine Mueller from Cologne in Germany.
“The shops are beautiful so I expect to pay a little more because of the environment, however, I stopped for lunch yesterday and regretted it after getting the bill. It’s back to the cruise liner today for our food.”
While UK and European visitors are being hit hard by the UAE’s peg to the dollar, retailers are looking to Asia and the GCC for customers who are still prepared to splash the cash.
“Dubai is still cheaper than China for many products,” said a sales assistant in Louis Vuitton.
“We see many tourists from Asia and the GCC spending on goods that are not available in their home countries or are far more expensive because of tax.”
ascott@thenational.ae
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