Five jewelry retailers reported that gold jewelry sales in Dubai dropped 30% this year due to higher prices and fewer tourists because of the economic slowdown. Many of the 8 million tourists visiting Dubai last year were attracted by the tax free gold. However the retailer Reuters say there are far fewer tourists visiting the emirate known as “the City of Gold”. A shop keeper from Al Khaledyah Jewelry said they have seen a 30% drop in sales this June.
Another Souk salesman said buyers have also been deterred by the higher price of gold which increased 26% to about $921.75 an ounce on Wednesday – compared to a low of $680 in October. The Dubai Department of Tourism and Commerce Marketing said last year 7.7 million tourists visited Dubai, but no figures are yet available for 2009.
