OVER 2000 pubs have closed in Ireland in the last twenty years, according to a new report commissioned by the Drinks Industry Group of Ireland (DIGI).
The study, by economist and DCU associate professor Anthony Foley, paints a bleak picture for the future of Irish pubs, especially in rural areas.
From 2005 to 2024, the number of licensed pubs in Ireland dropped from 8,617 to 6,498, amounting to a decline of more than 25%.
While closures have been widespread across all 26 counties, rural areas have been hit hardest.
Counties like Limerick, Offaly, and Cork experienced the steepest drops, with decreases of 37%, 34%, and 32%, respectively.
Meanwhile, Dublin saw the smallest decline at just 1.7%.
The report underscores a troubling trend: the erosion of pubs in rural communities, where they often act as much more than just a place to drink.
“There has been a pattern of pub closures across Ireland, particularly in rural Ireland, in recent years,” said Professor Foley in the report.
These pubs are frequently the heart of their communities, offering a vital social and cultural hub as well as a key attraction for tourism.
According to DIGI Secretary Donall O’Keeffe, the primary reason behind these closures is the high costs imposed by the state, including taxes and regulatory burdens.
Ireland currently has the second-highest tax rate on alcohol in the European Union, alongside a 23% VAT rate.
These costs, coupled with rising operating expenses and falling rural populations, are making it harder for family-owned pubs to stay afloat.
“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,” said Foley.
DIGI is calling for a 10% cut in excise duty in the upcoming budget to help ease the financial burden on pub owners.
“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,” said O’Keeffe.
The report projects that between 600 and 1,000 more pubs could close over the next decade if nothing changes.