CITY workers are expected to spend tens of millions of pounds on luxury boats over the next week as they seek a mooring for their bonuses.

Merrill Lynch and Morgan Stanley are among City firms poised to pay generous bonuses to staff this month after a bumper year.

Exhibitors at the London Boat Show, which opened yesterday at the ExCeL Centre in Docklands, began receiving calls in mid-November from City staff interested in buying boats with their bonuses.

Stung by a drop in attendance last year, the organisers have tried to target City staff by opening late on Thursday nights — when bankers tend to socialise. They also expect to benefit from the show’s proximity to Canary Wharf.

Yacht brokers, such as Richard Lambert, managing director of Oceanstyle Yachting, say they have not seen such strong demand for years. Mr Lambert expects to sell at least three or four yachts at $3 million (£1.7 million) to $10 million. “The interest we’re getting is for yachts in the 80ft to 110ft bracket,” he added.

Bankers of more modest means could settle for a £100,000 boat, says Brian Peters, the show’s chairman.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts