2,054 pubs have closed down across the country since 2005, according to a new report from the Drinks Industry Group of Ireland (DIGI).
The study shows that shows that an average of 114 pubs have closed annually over the past 18 years.
The rate of closures has risen in the last five years to an average 144 annual closures.
The report shows that between 2005 and 2023, the number of pubs has reduced by 23.8% to 6,563.
Pubs
The report shows that all 26 counties have experienced a decline in pub numbers since 2005, with higher closure rates recorded in more rural counties.
Limerick is the county with the largest decrease in pubs, with a drop of 35.6% since 2005.
This is followed by Roscommon (31.9%), Cork (31.4%), Tipperary (31.2%) and Laois (30.6%) which all exceeded the national closure average of 24%.
The lowest number of pub closures over the period was reported in Dublin which has seen a decline of 3% in pub numbers.
Other counties with lower closures rates include Meath (6.7%), Wicklow (8.9%), Kildare (12%) and Carlow (14.2%).
Professor Anthony Foley, economist and associate professor emeritus at Dublin City Univerity (DCU), who carried out the analysis for DIGI said the report “verifies the consistent trend we have been seeing with pub numbers in every part of the country”.
“There is clearly a variation on closures between counties which broadly sees rural areas adversely impacted.
“The continuing decline is taking place against a backdrop of societal change and cost of business strains.
“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,” he said.
Costs
A recent survey of almost 600 pubs and restaurants, conducted as part of the new report found that almost one in four had seen their business costs increase by 20-30% in the last two years.
An additional 15% found that their business costs had increased by over 40% in the last two years.
Kathryn D’Arcy, chairperson of DIGI, called on the government to “deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to hundreds of small businesses”.
“Pubs, restaurants, and hotels employ over 207,000 people which is 8.3% 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.
“DIGI’s research shows that when government responds, particularly on heavy cost items like taxation, the sector responds.
“Punitive taxes like excise duty which are in some instances 12 times higher here than in other countries, are one such cost item,” she said.
DIGI said that Ireland’s excise on spirits and beer is the third highest in Europe, while our excise on wine is the second highest in Europe.