Over 21% decline in Irish pubs since 2005, new report shows


Over 21% decline in Irish pubs since 2005, new report shows

Thursday, August 04, 2022.

Over 21% decline in Irish pubs since 2005, new report shows

1,829 less pubs in Ireland over 16-year period, while 349 closed during Covid period

  • Drinks Industry Group of Ireland analysis shows 21.2% (1,829) of pubs closed between 2005 and 2021
  • Decrease in pubs in every county in Ireland, while 4.9% (349) of pubs closed throughout pandemic period 2019 – 2021
  • Laois most affected reporting a 30.6% decline, while Meath suffered the least with a mere 1.4% decline
  • 23 counties had decreases in the number of pubs of greater than 10%
  • DIGI calls on Government to ease the cost burden on rural drinks businesses to ensure their sustainability by reducing Ireland’s high alcohol excise tax over the next two years

A new report from the Drinks Industry Group of Ireland (DIGI) has shown a stark decline in the number of pubs doing business throughout the country since 2005. The Irish Pub: Stopping the Decline report, based on the group’s analysis of Revenue license data and including an economic and social analysis by Dublin City University (DCU) Associate Professor Emeritus and economist Anthony Foley, shows a 21.2% decline in the number of pubs in Ireland from 2005 to 2021.

THE DATA

All 26 counties experienced declines in pub numbers through the 16-year period. The largest decrease was seen in Laois with 30.6% less pubs since 2005. This was the only county with a decrease of 30% or more. The lowest decrease was in Meath with 1.4% less. Meath was followed by Dublin, reporting a decrease of only 4.3%. All the remaining 23 counties had decreases greater than 10%.

Three counties, Carlow (10.4%), Kildare (13.6%), and Wicklow (10.1%) showed decreases between 10% and 14.9% while Cavan (17.2%), Kerry (15.3), Kilkenny (18.1%), Monaghan (19.8%), and Wexford (17.2%) were in the 15% to 19.9% decrease bracket. All the remaining counties had decreases of more than 20%. Six counties, Clare (24.7%), Galway (20.6%), Louth (20.3%), Sligo (24%), Waterford (23.5%), and Westmeath (24.4%) were in the 20% to 24.9% decrease band, while nine counties Cork (28.5%), Donegal (26.3%), Leitrim (26.4%), Limerick (29.1%), Longford (25.7%), Mayo (25.1%), Offaly (29.9%), Roscommon (28.3%), and Tipperary (26.3%) saw decreases between 25% and 29.9%.

ECONOMIC AND SOCIAL ANALYSIS

According to an economic and social analysis of the numbers, economist Anthony Foley notes that public houses contribute to the culture and vibrancy of villages, small towns, and rural areas in many ways. They contribute to tourism and provide an extensive network of physical facilities and services needed by tourists and locals.

Foley cites concerns for the impact of the decline on rural Ireland, when taken in the context of wider challenges facing areas outside Dublin. When you consider decreases in the number of post offices, full bank branches, Garda stations, local retail enterprises and a wide range of other services and facilities, there are concerns about the commercial capability of small towns and villages with large levels of commercial building vacancy.

According to the analysis, Foley suggests there is likely to be a negative social impact arising from the trend and extent of closures, especially in rural and remote areas in Ireland.

Foley cites a number of reasons for the decline including non-replacement of pub operators on retirement or death, low levels of business volume and economic sustainability, regulatory changes such as tighter drink driving laws and enforcement allied with weak or non-existent public transport and population change and distribution, among others.

COMMENT

Paul Clancy, DIGI member and CEO of the Vintners Federation of Ireland, described the report as ‘alarming.’

“1,829 rural pub closures represent businesses that provide jobs, a hub in the local community for socialising and community integration and a cultural centre which has long been documented as among the main attractions for tourists visiting Ireland. The pace of decline increased as a result of the Covid-19 pandemic which saw the drinks and hospitality industry suffer the worst of all, with one of the longest lockdowns recorded globally.

“Considering this sharp decline and trend we’re witnessing; we need to monitor this industry carefully and ensure all the necessary supports are in place to contribute to stopping this trend. Our high alcohol excise tax is a cost and slows the growth of these businesses and impacts their day-to-day operations and bottom line. Exasperated currently with inflation and the cost of living. We are calling on the Government to reduce excise tax to support the industry with meaningful measures that will be felt immediately and reduce costs over night for tens of thousands of business owners.”

Commenting today, Kathryn D’Arcy, recently appointed Chair of DIGI and Communications and Corporate Affairs Director at Irish Distillers said:

“The Irish pub has been in a steady decline for years, and these stark figures once again highlight the need to secure the sustainable future of our pubs. Central to this is introducing policy measures which can make both an immediate difference and a long-term impact in terms of delivering sustainable policy to support these businesses. DIGI is seeking a reduction in Ireland’s high excise tax rate which would deliver on this.” 

Commenting on DIGI’s report, economist and Associate Professor Emeritus, DCU Anthony Foley notes that:

“There is likely to be a negative social impact arising from the closure of the 1,829 public houses between 2005 and 2021. Pubs serve as a vital social outlet for many people, particularly in rural Ireland. With people living there faced by the spectre of rural decline, preserving the cultural heritage of the Irish pub in Ireland is arguably a progressive course of action. Economic and business sustainability is one of the several determining factors of closures of small public houses. Addressing high excise would have a positive effect on the commercial sustainability of small public houses and would be a strong element in the wider policy strategy to support rural areas. It is a measure which is completely within the scope of Government.”

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