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Irish Post
4 days ago
- Business
- Irish Post
Two pubs closing each week in Ireland
OVER 2000 pubs have closed in Ireland in the last twenty years, according to a new report commissioned by the Drinks Industry Group of Ireland (DIGI). The study, by economist and DCU associate professor Anthony Foley, paints a bleak picture for the future of Irish pubs, especially in rural areas. From 2005 to 2024, the number of licensed pubs in Ireland dropped from 8,617 to 6,498, amounting to a decline of more than 25%. While closures have been widespread across all 26 counties, rural areas have been hit hardest. Counties like Limerick, Offaly, and Cork experienced the steepest drops, with decreases of 37%, 34%, and 32%, respectively. Meanwhile, Dublin saw the smallest decline at just 1.7%. The report underscores a troubling trend: the erosion of pubs in rural communities, where they often act as much more than just a place to drink. 'There has been a pattern of pub closures across Ireland, particularly in rural Ireland, in recent years,' said Professor Foley in the report. These pubs are frequently the heart of their communities, offering a vital social and cultural hub as well as a key attraction for tourism. According to DIGI Secretary Donall O'Keeffe, the primary reason behind these closures is the high costs imposed by the state, including taxes and regulatory burdens. Ireland currently has the second-highest tax rate on alcohol in the European Union, alongside a 23% VAT rate. These costs, coupled with rising operating expenses and falling rural populations, are making it harder for family-owned pubs to stay afloat. '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,' said Foley. DIGI is calling for a 10% cut in excise duty in the upcoming budget to help ease the financial burden on pub owners. '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,' said O'Keeffe. The report projects that between 600 and 1,000 more pubs could close over the next decade if nothing changes. See More: Anthony Foley, DIGI, Donall O'Keefe, Irish Pubs
BreakingNews.ie
6 days ago
- Business
- BreakingNews.ie
Concerns EU-US trade war could affect tourist visitors to Irish pubs
Concerns have been raised that an EU-US trade war could add to the decline in pubs in Ireland by affecting US tourist numbers. The industry has warned that Irish consumers could also be more cautious about discretionary spending in pubs if the economy takes a hit due to mooted US tariffs of 30 per cent. Advertisement A study released by a lobby group indicates that one in four pubs in Ireland have closed in the past 20 years. This is because of a combination of factors including lifestyle changes and an increase in operating costs. Although Ireland remains 'extremely densely pubbed', with around 6,200 premises across the country, the 'slow, steady, inexorable' decline is expected to continue, an industry representative said. Donall O'Keeffe, secretary of the Drinks Industry Group of Ireland and chief executive of the Licensed Vintners Association, said 'a huge amount of challenges' were 'landing simultaneously' for Irish pubs. Advertisement 'The sector is genuinely under pressure and the proof positive is the closures,' he told the PA news agency. A report published on Monday indicates that 2,119 closed their doors since 2005, and a further 600 to 1,000 are expected to close over the next decade. The report was compiled by Associate Professor Emeritus at DCU, economist Anthony Foley, on behalf of the Drinks Industry Group of Ireland (Digi). Mr Foley said there was a particular pattern of pub closures across rural Ireland, but all 26 counties have experienced declines in pub numbers from 2005 to 2024. Advertisement The highest falls were in counties Limerick (-37 per cent), Offaly (-34 per cent) Cork (-33 per cent), Roscommon (-32 per cent), Tipperary (-32 per cent), Laois (-31 per cent), Longford (-30 per cent) and Westmeath (-30 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. The trend of pub closures was accelerated during the Covid-19 pandemic lockdowns when operations were restricted or prevented, Mr O'Keeffe said. Since then, there has been a series of 'extraordinary and incessant' cost increases for food, drink, electricity, insurance and labour. Advertisement Added to the changes that have contributed to less drinking in pubs are a clamp down on drink driving, work pressures and commuting times meaning people get up earlier in the morning, and lifestyle changes. The average Irish person's alcohol consumption has dropped by a third since 2001 and figures suggest alcohol consumption in Ireland may now be in line with the European average. He added: 'Lifestyles are changing fast, and the next generation are certainly consuming much less alcohol than previous generations. 'The pub is still part of their social repertoire. They go to a pub for events, particularly, whether it's before or after a match or a concert or an office party or 21st or 30th, so pubs fit in their social lives, but certainly not with the same frequency as previous generations.' Advertisement Mr O'Keeffe said the cost of doing business was one factor in the closure of pubs and called on excise to be cut by 10% in the upcoming budget. 'In simple terms, in round figures, 30 per cent of the price of every drink that's sold goes on tax to the Government. 'Changes in lifestyle and costs of energy and some other costs are outside of the scope of the government control, but excise is certainly within the Government's gift to control, and we're calling on the Government to cut excise by 10% in the budget in October to aid the viability of these businesses, to give them a better chance of staying open.' He also said in the context of US President Donald Trump's threat of a 30 per cent tariff on EU goods, boosting the local pubs trade will help with the Irish drinks industry. 'By cutting excise, you help pubs keep their doors open, and we obviously buy lots of products from local craft brewers, local distillers, and they'll need domestic sales more,' he said. 'It's going to be a nightmare environment if tariffs end up at 30 per cent so supporting the domestic economy becomes really important.' He said that if that 30 per cent tariff were to be enforced from August 1st, it may cause both Irish consumers and US tourists to become more cautious, which would impact on pubs decline even further. 'You would worry about discretionary spending if consumer confidence takes a heavy hit,' he said. 'If there's a trade war between the EU and US, what'll that do to American tourists' willingness to travel to Ireland? 'So we would be concerned that US tourist numbers could be hit in that context. 'We don't have any clarity on next year's tourist performance, but you would be worried about it, for sure.'
Extra.ie
6 days ago
- Business
- Extra.ie
Revealed: This is how many Irish pubs closed in the last 20 years
Over a quarter of Irish pubs have closed their doors since 2005, according to a report by the Drinks Industry Group of Ireland (DIGI). The research found that from 2005 to 2024, the number of publican licenses went from 8,617 to 6,498, with over 2,100 pubs having closed in total. DIGI has predicted up to 1,000 pubs to potentially close in the next 10 years. 'We are likely to see a further 600 to 1,000 pubs close over the coming decade,' said the report's author, Professor Foley. 'The addition of profound economic uncertainty through US trade tariffs and reduced levels of inbound tourism further threatens the financial foundations of family-owned pubs across the country.' The report, along with Economist and Associate Professor Emeritus at DCU, Anthony Foley, has found that an average of 112 pubs have stopped trading each year. The largest rate of closure was in rural countries, with the highest decreases at 37.2% in Co. Limerick, followed by 34.1% in Co. Offaly and 32.7% in Co. Cork. Limerick has experienced pub numbers dropping from 478 to 300 since 2005. The lowest decrease was in Co. Dublin at 1.7%, followed by 9.5% in Co. Meath and 10.8% in Co. Wicklow. DIGI secretary Donall O'Keefe has called on the government to cut excise duty by 10% in the upcoming budget, stating that the Irish consumption of alcohol has fallen to average EU levels, meaning there is no justification for the high rate. '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,' he said.
The Journal
6 days ago
- Business
- The Journal
Ireland has lost a quarter of its pubs since 2005
OVER 2100 PUBS – or 24.6% of public houses in Ireland – have closed since 2005, a new report has found. It comes as research indicated a further 1,000 pubs could close over the coming decade. The Drinks Industry Group of Ireland's report shows a continuing decline of the number of publican licenses and the amount of pubs closing its doors. Between 2005 and 2024, the number of publican licenses went from 8,617 to 6,498. 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. The average number of pub closures per year rose to 128 when measuring between 2019 and 2024. Advertisement Rural counties had the highest rates of closure. Limerick, Offaly, Roscommon, Tipperary, Laois, Longford, and Mayo all recorded closure rates of over 30% in the time period measured. Limerick had the largest amount of pubs close their doors. Over 37% of pubs in the county ceased business over the 19 years accounted for, Having had 478 pubs in 2005, it now has 300. The lowest decrease was in Dublin with a drop of -1.7%, going from 786 pubs in 2005 to 773. Meath had a decrease of -9.5%. Wicklow had a decrease of 10.8% and all other counties saw a 13% or greater decrease. According to DIGI, the high cost of doing of business was a major contributory factor to the alarming rate of closures recorded by the report. It said that without immediate action by the Government, 'many villages and small towns will soon lose their last remaining pub which would deal a devastating blow to the economic and social fabric of that community.' Commenting on the report, author Professor Tony Foley said that the addition of 'profound economic uncertainty through US trade tariffs' and reduced levels of tourism 'further threaten the financial conditions 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.' DIGI secretary Donall O'Keeffe said that the government should cut the excise rate in the upcoming budget, saying that the Irish consumption of alcohol has fallen to average EU levels and there is no justification for the high rate. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Irish Sun
6 days ago
- Business
- The Irish Sun
Inside Ireland's pub industry's devastating decline as 2,100 boozers pull final pints amid VAT rate ‘act now' cut call
OVER 2,100 pubs have shut their doors permanently in the past 20 years, according to a shock new report. One in four have closed down since 2005 as the 2 Professor Anthony Foley found that an average of 112 pubs stopped trading every year The study, commissioned by the Drinks Industry Group of Ireland, found that a massive 2,119 have pulled their final pints in that period. Compiled by Economist and Associate Professor Emeritus at DCU, Professor Anthony Foley, the research found 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 and 2024. The highest decrease was in Limerick, which has seen the numbers fall by 37.2 per cent, followed by READ MORE IN MONEY The lowest decrease was in DIGI said the high cost of doing business was a major factor to the alarming rate of closures recorded by the report. The group pleaded with the Government for help, warning that many villages and small towns will lose their remaining pubs, dealing a 'devastating blow to the economic and social fabric of that community'. MOST READ ON THE IRISH SUN DIGI has urged the policy makers to use the upcoming Budget to introduce a 10 per cent cut in excise, which currently stands as the second highest in the Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down Commenting on the report, Professor Foley said: 'This report reveals a pattern of pub closures across Ireland, particularly in rural Ireland in recent years. 'The addition of profound economic uncertainty through 'In the absence of government intervention, we are likely to see a further 600 to 1,000 pubs close over the coming decade.' 'ACT BEFORE IT'S TOO LATE' DIGI secretary Donall O'Keeffe, who is also the CEO of the Licensed Vintner's Federation warned that the high VAT was also crippling pubs and urged the Government to act now. He said: 'More than 100 pubs are closing every year in Ireland, due in large part to the high costs imposed by the State. '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. Once closed, such pubs rarely re-open. 'The Government could improve commercial viability overnight by cutting excise by 10 per cent. "With Irish consumption of alcohol having fallen to average '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.' 2 All 26 counties experienced declines in pub numbers between 2005 and 2024 Credit: Getty
