QE2, icon of cruise world, may be on the move again

[mercedes]

A Dubai company's grand plans to open the historic QE2 as a floating luxury hotel in the city may be falling apart -- a victim of the economic downturn.

The Associated Press today reports the cash-strapped owner of the retired Cunard Line ocean liner is weighing plans to send the vessel as far away as South Africa as an alternative to financially struggling Dubai.

"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," a spokesperson for Nakheel tells the news service in an email confirming the ship could move.

The 40-year-old, 1,777-passenger vessel, which retired in November, currently is languishing at Dubai's downtown Port Rashid.

South Africa's Business Day newspaper reports financially struggling Nakheel has applied to anchor the ship in Cape Town. Nakheel, one of main developers responsible for Dubai's rapid growth in recent years, has been laying off employees and canceling projects as the economic downturn takes a toll on the once highflying city.

Nakheel bought the retiring QE2 from Cunard for about $100 million.