Mammoth Decline In Pub Trade Blamed On High Taxes And Change In Lifestyle

Abandoned pub

The Drinks Industry Group of Ireland reports a stark decline in the number of pubs doing business 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 DCU Associate Professor Emeritus and economist Anthony Foley, shows a 21.2% decline in the number of pubs in Ireland from 2005 to 2021.  

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%. 

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 

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 centrewhich 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 fortens 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.”