‘We’ve been hurt’ – but McGettigan’s owner to expand

• War halved revenue earlier in year
• Three new UAE venues, says CEO
• Government measures a ‘huge help’

Dubai’s Vision Hospitality is expanding its portfolio with three new venues in the UAE, even though trading fell by as much as a quarter in September after the regional conflict hit demand, its chief executive has said.

The company, which runs the McGettigan’s Irish pub brand, will open venues in Abu Dhabi, Reem Mall and Dubai in the fourth quarter, taking the number of owner-operated outlets to seven alongside seven franchises.

Revenue fell by roughly half in March and April, CEO Dennis McGettigan told AGBI, as hostilities between the US and Iran spilled into the Gulf. He expects trading to improve in the coming months, but said he would be “very, very happy” if the decline narrowed to 10-15 percent by the end of the year.

“We have been exceptionally hurt, like everybody in our industry has been,” McGettigan said.

Vision Hospitality opened its latest outlet, Bla Bla by McGettigan’s, on October 1. McGettigan said the deal was finalised on March 1, one day after the Iran war began.

“The timing was not ideal to say the least,” he said.

The expansion includes an eight-figure dirham refurbishment of the Jumeirah Beach Residences premises, including a new bar, restaurant and wine bar concept. Another outlet, Jump Street, is expected to open in October, followed by an Abu Dhabi venue and an opening at Reem Mall in November.

Dubai’s wider tourism sector is still trying to recover from the disruption caused by the conflict. Hotel occupancy rose from 36 percent in March to 66 percent in August, according to government figures, while the city recorded 869,000 international overnight visitors in August, its highest monthly figure since February. Dubai had nearly 7 million international overnight visitors in the first eight months of the year.

For restaurants and bars, however, the recovery has coincided with higher costs and increased consumer price sensitivity.

Food prices have risen by at least 5 percent and drinks by a similar amount, while group revenue remains below pre-conflict levels, McGettigan said.

“If your costs are going up and you’re still working off lower revenue figures, then it does become tough,” he said.

The company has received some relief from government measures introduced during the downturn. Dubai announced two economic support packages worth a combined AED2.5 billion, including exemptions from the collection of the Tourism Dirham and sales fees on hotel rooms and restaurants, as well as relief on event permits and other tourism-related charges.

McGettigan said the measures had provided significant breathing space. “We got a holiday for about six months. That was a huge help, a massive benefit,” he said.

Further reading:

• McGettigan’s buys Dubai’s Bla Bla beach club
• Dubai restaurants warn of closure as Iran war hits tourism
• Dubai offers further support for businesses hit by Iran war

The group also has ambitions to return to markets including the US and UK, where it previously ran outlets that closed during the Covid-19 pandemic.

Vision Hospitality is not pursuing major acquisitions in Dubai, although McGettigan said he has been looking at potential opportunities in Ras Al Khaimah for about five years.

“Ras Al Khaimah is certainly one on my radar,” he said.