Pub Closures Rise: 2,100 Losses in 20 Years
Ireland‘s pubs Face Crisis: Over 2,100 Closures Since 2005, Urgent Government Action Demanded
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Dublin, Ireland – A stark new report reveals that more than 2,100 pubs across Ireland have shut their doors since 2005, painting a grim picture for the future of these vital community and tourism hubs. The study, commissioned by the Drinks Industry Group of Ireland (DIGI), highlights a sustained decline in the sector, with an average of 112 pubs ceasing operations annually over the past two decades.
The scale of the Crisis: A Quarter of Pubs Gone
The comprehensive report, compiled by economist and Associate Professor Emeritus at Dublin City University, Anthony Foley, concludes that the number of pubs in Ireland continues to dwindle. Since 2005,a staggering 2,119 pubs,representing one in every four,have closed. This translates to a nearly 25% decline in publican licences between 2005 and 2024, dropping from 8,617 to 6,498.
Rural Ireland Hit Hardest by Closures
The research indicates a widespread pattern of pub closures affecting 26 counties. The rate of closure has been most acute in rural areas, underscoring the disproportionate impact on these communities.
Co Limerick experienced the highest decrease at 37.2%.
Co Offaly followed with a 34.1% decline.
* Co Cork saw a reduction of 32.7%.
In contrast, urban centres like Dublin recorded the lowest decrease at just 1.7%, with Co Meath (9.5%) and Co Wicklow (10.8%) also showing more resilient figures.
Future Outlook: A Looming Threat of Further Closures
DIGI has issued a dire warning, suggesting that between 600 and 1,000 additional pubs could close within the next decade if current trends persist and no government intervention is forthcoming.Professor Foley echoed these concerns, identifying a clear pattern of closures, particularly in rural Ireland in recent years.
Economic Uncertainty and Tourism Impact
Professor Foley pointed to “profound economic uncertainty,” including the impact of US trade tariffs and reduced inbound tourism, as significant threats to the financial stability of family-owned pubs. He stressed that without decisive government action,the sector faces a continued and significant contraction.
The Industry’s Plea: A 10% Excise Duty Cut
In response to the crisis, DIGI is urgently calling on the Government to implement a 10% cut in excise duty in the upcoming Budget. Donall O’Keeffe, Chief Executive of the Licensed Vintners Association and Secretary of DIGI, stated that the high costs imposed by the State are a primary driver behind the annual closures.
Justification for Tax Relief
O’Keeffe argued that with Irish alcohol consumption having fallen to average EU levels and projected to continue declining, the current excise rates – the second-highest in europe - are no longer justifiable. This burden is compounded by a substantial 23% VAT rate, further squeezing the commercial viability of pubs.
“Without immediate intervention, up to 1,000 more pubs will close for the last time, leaving their communities without a vital community and tourism hub,” O’Keeffe warned. He emphasized that a 10% excise duty cut could “improve commercial viability overnight.”
Data Integrity and Methodology
The DIGI report was meticulously prepared using data sourced from the register of alcohol licences compiled by the Revenue Commissioners. The Vintners Federation of ireland played a crucial role in analysing this data, specifically to exclude other licensed enterprises such as hotels, ensuring the accuracy of the pub closure figures.