Rural areas worst hit as more than 2,000 pubs have shut since 2005
More than 2,000 pubs have closed in Ireland since 2005, with an average of 114 calling time on trading annually, according to the Drinks Industry Group of Ireland (DIGI), an industry lobby group.
It says there are 2,054 fewer pubs today than in 2005, with Limerick (35.6pc), Roscommon (31.9pc), Cork (31.4pc), Tipperary (31.2pc) and Laois (30.6pc) the counties with the highest declines.
Across the country as a whole 24pc of pubs have shut in the period, the report says.
In Dublin, however, the decline was just 3pc. Other counties with lower closures rates include Meath (6.7pc), Wicklow (8.9pc), Kildare (12pc) and Carlow (14.2pc).
DIGI has stepped up a campaign for a cut to the excise rates charged on alcoholic drinks ahead of the budget. It commissioned the report ‘Support Growth: A Sustainable Future for Ireland’s Drinks and Hospitality Sector’, by economist Tony Foley, Associate Professor Emeritus at DCU.
He said the continuing decline of the pub trade is taking place against a backdrop of societal change and cost of business strains.
The figures are for licensed premises that are pubs only, and does not include other licensed premises such as hotels.
“Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products,” Prof Foley said.
“We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder. Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever rising. Energy, insurance, and other cost line items continue to rise, many by double digits. The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe,” he added.
Drinks Industry Group Ireland chair, and Communications and Corporate Affairs Director at Irish Distillers, Kathryn D’Arcy, said the decline reflects the real change and challenges the sector is dealing with.
“Pubs, restaurants, and hotels employ over 207,000 people which is 8.3pc of all employees in the country. These people and the businesses they work for are part of the economic and social fabric of their communities. Running such businesses in a climate where the cost of doing business is squeezing more and more is difficult,” she added.
“Punitive taxes like excise duty which are in some instances 12 times higher here than in other countries, are one such cost item. Ireland’s excise on spirits and beer is the third highest in Europe, while our excise on wine is the second highest in Europe. We have some of the highest excise duties in the world and the second highest in Europe overall.
“We are calling on Government to deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to the hundreds of small businesses in our sector struggling to stay open. We have costed, considered plans on how to do this and welcome engaging with government and others on our proposals,” she added.