ALMOST 400 pubs have closed in Cork since 2005 with rural areas worst hit according to a new report commissioned by the Drinks Industry Group of Ireland (DIGI).
All 26 counties experienced declines in pub numbers over the 2005 to 2024 period with 2,119 - or one in four - closing their doors in that period.
The highest decrease was in Limerick (-37.2%), followed by Offaly (-34.1%) Cork (-32.7% or 399 pubs), Roscommon (-32.3%), Tipperary (-32.0%), Laois (-30.6%), Longford (-30.1%) and Westmeath (-30.0%).
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 lowest decrease was in Dublin with a drop of -1.7%, followed by Meath with a decrease of -9.5%. Wicklow had a decrease of 10.8% and all other counties saw a 13% or greater decrease.
DIGI said 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.
DIGI has called for the Government to use the upcoming Budget to introduce a 10% cut in excise, which currently stands as the second highest in the European Union.
‘This report reveals a pattern of pub closures across Ireland, particularly in rural Ireland in recent years. 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 Professor Tony Foley.
DIGI secretary, Donall O’Keeffe added that ‘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%. 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% VAT rate. The time for the Government to act is now before it is too late,’ he added.
Independent Ireland TD Micheal Collins also issued a stark warning to the Government, claiming: ‘The heartbeat of rural Ireland is slipping away before our eyes.’
