Almost 2,000 pubs closed since 2005, 'alarming' report finds

The analysis found that 1,937 pubs have closed  in Ireland since 2002. File picture: Denis Scannell

Almost 2000 pubs have shut their doors since 2005 with Limerick suffering the highest decrease across Ireland, according to a “stark” and “alarming” report.

The analysis, which has prompted calls to reduce the “extremely high” alcohol excise tax, found that 1,937 pubs closed since 2002, with 108 pubs closing in 2022 alone.

The analysis carried out by the Drinks Industry Group of Ireland (DIGI) also found a “disproportionate” impact in rural communities with areas in Limerick most impacted after a 32% decline in numbers since 2005, losing 153.

Cork was the third worst-hit county by the percentage of lost pubs after Roscommon, declining by 30%. However, it lost the highest number of pubs nationwide at 365 in the same period. More than a quarter of pubs in Tipperary, Waterford, and Clare closed since 2005.

Although all counties saw a decrease, Dublin remained relatively unscathed when compared with others, suffering a decline of 3.4% (27) since 2002.

The rate of decline of pubs has accelerated since the covid-19 pandemic, with an average of 114 pubs shutting their doors across the country each year before jumping to 152 per year since 2019. Some 450 pubs have closed since the onset of the pandemic.

The analysis has prompted calls on Government to ease the cost burden on regional small and family-run businesses to ensure their sustainability by reducing Ireland’s “extremely high” alcohol excise tax over the next two years.

DIGI Chair Kathryn D’Arcy said the report paints a stark picture of a sector that is fighting against a continued decline due to external pressures outside its control.

"The majority of the almost 2,000 pubs cited in the report which have closed represent the closure of a small or family-run business, the loss of a livelihood and the disappearance of a high-street landmark,” she said.

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Ms D’Arcy said Ireland’s excise on wine is the highest in Europe and our excise on beer is the second highest while the excise on spirits is the third highest.

She said a reduction in Ireland’s “extremely high” excise duties would make an immediate, positive difference to the hundreds of small businesses in the sector struggling to stay open.

Economist and Associate Professor Emeritus at DCU, Anthony Foley, said although there are both economic and social reasons for the decline, the issue requires “full consideration” given the knock-on impact it has on local communities.

“The Irish pub is a significant component of the tourism infrastructure and the tourism experience which is based on hospitality and service provision. There are now 1,937 less locations for visitors to find and benefit from services such as food and entertainment.

Mr Foley said addressing the “excessively high” excise duty in Ireland compared to other countries would have a positive effect on the viability of small pubs.