More than 2,000 pubs have closed in Ireland in past 20 years, report says

The traditional Irish pub could become a thing of the past for many rural communities after a new report revealed that well over 2,000 bars have closed in the last two decades.

And it could get a lot worse as the same study has predicted that up to a 1,000 more pubs could close in the years ahead if action is not taken now.

Pub closures were on average running at around 112 a year but between 2019 and 2024 this rate increased to 128 annually.

Overall in the years from 2005 and 2024 the number of publican licenses declined from 8,617 to 6,498, a drop of 24.6%, the report commissioned by the Drinks Industry Group of Ireland (DIGI) found.

The rate of closure is highest in rural counties, with Limerick, Offaly, Roscommon, Tipperary, Laois, Longford and Mayo recording closure rates of over 30% between 2005 and 2024.

The report, compiled by Dublin City University economics professor Anthony Foley warns that more closures are imminent, especially in rural areas. He said: “This report reveals a pattern of pub closures across Ireland, particularly in rural Ireland in recent years.

“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.

“In the absence of government intervention, we are likely to see a further 600 to 1,000 pubs close over the coming decade.”

The study found that all 26 counties experienced declines in pub numbers in the two decades to up until last year.

The highest decrease was in Limerick (-37.2%), followed by Offaly (-34.1%) Cork (-32.7%), Roscommon (-32.3%), Tipperary (-32.0%), Laois (-30.6%), Longford (-30.1%) and Westmeath (-30.0%).

The lowest decrease was in Dublin with a drop of -1.7%, followed by Meath with a decrease of -9.5%.

Wicklow had a decrease of 10.8% and all other counties saw a 13% or greater decrease.

One of the reasons for the dramatic rise in pub closures in recent years could be down to Covid-19 when the hospitality sector was devastated.

This led to an increased number of publicans calling time on their business with some selling their licences for up to €50,000.

The deregulation of pub licences over two decades ago opened up the market as licences could then be transferred for use anywhere in the state.

Some of these were snapped up by supermarket multiples eager to sell alcohol and were willing to pay over the odds for them. Other licences were sold to individuals and businesses intending to open an off-licence but the downside of these sales was that many small villages were left without a pub.

DIGI also claims the high cost of doing business is a major contributory factor to the rising rate of closures recorded by the report.

The organisation said that without immediate action by the Government many villages and small towns will soon lose their last remaining pub which would deal a devastating blow to the economic and social fabric of that community.

The Drinks Industry Group is now calling on the Government to use the upcoming Budget to introduce a 10% cut in excise, which they say is the second highest in the European Union.

“More than 100 pubs are closing every year in Ireland, due in large part to the high costs imposed by the State. Without immediate intervention, up to 1,000 more pubs will close for the last time, leaving their communities without a vital community and tourism hub. Once closed, such pubs rarely re-open.

DIGI secretary, Donall O’Keeffe, said: “The Government could improve commercial viability overnight by cutting excise by 10%.

“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.

“This is on top of a hefty 23% VAT rate. The time for the Government to act is now before it is too late.”

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