100 Kerry pubs close since 2005 with US tariffs likely to cause further decline
DIGI say the high cost of doing business was a major contributory factor to the alarming rate of closures with research showing a further 1,000 pubs could close over the coming decade.
It added that without immediate action, many villages and small towns will soon lose their last remaining pub, dealing a devastating blow to the economic and social fabric of communities.
DIGI has called on the government to use the upcoming budget to introduce a 10 per cent cut in excise. Ireland currently has the second highest rate in the European Union.
The report, compiled by Economist and Associate Professor Emeritus at DCU, Anthony Foley, shows that an average of 112 pubs stopped trading every year, with a further 600 to 1,000 closures estimated over the next decade.
All 26 counties experienced declines in pub numbers between 2005 to 2024. The highest decrease was in Limerick (-37.2 per cent), followed by Offaly (-34.1 per cent) Cork (-32.7 per cent), Roscommon (-32.3 per cent), Tipperary (-32.0 per cent), Laois (-30.6 per cent), Longford (-30.1 per cent) and Westmeath (-30.0 per cent).
The lowest decrease was in Dublin with a drop of -1.7 per cent, followed by Meath with a decrease of -9.5 per cent. Wicklow had a decrease of 10.8 per cent and all other counties saw a 13 per cent or greater decrease.
'The addition of profound economic uncertainty through US trade tariffs and reduced levels of inbound tourism further threaten the financial foundations of family-owned pubs across the country. In the absence of government intervention, we are likely to see a further 600 to 1,000 pubs close over the coming decade,' said report author, Professor Tony Foley.
DIGI secretary, Donall O'Keeffe said government could improve commercial viability overnight by cutting excise.
'With Irish consumption of alcohol having fallen to average EU levels, and likely to continue dropping, it is no longer justifiable that pubs should be faced with the second-highest excise rates in Europe. This is on top of a hefty 23 per cent VAT rate. The time for the Government to act is now before it is too late,' said Mr O'Keeffe.
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