Report shows that 135 pubs have closed in Mayo since 2005

A NEW report has found that there are 135 less pubs trading in Co Mayo since 2005 which is a decline of 29 percent.

A new report from the Drinks Industry Group of Ireland (DIGI) shows that 2,054 pubs have closed down in Ireland within the past 20 years with 135 of them in Co Mayo.

The report, 'Support Growth: A Sustainable Future for Ireland’s Drinks and Hospitality Sector', includes a county-by-county breakdown of the number of pubs shuttered. The report, which also includes economic analysis from Economist and Associate Professor Emeritus at DCU, Anthony Foley, shows that an average of 114 pubs have closed annually over the past 18 years. The number of closures has risen in the last five years to 144 annual closures.

The survey showed that all counties in Ireland suffered a decline with a national average decline of 24 percent. The decline in pubs in Mayo since 2005 is at 28.9 percent while seven counties including Co Roscommon saw a decline at over 30 percent. The county with the lowest rate of decline is Co Dublin which saw a 3 percent decline in pub numbers during the same period.

Commenting on the report, DIGI Chair and Communications and Corporate Affairs Director at Irish Distillers, Kathryn D’Arcy, called on the Government to 'deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to hundreds of small businesses'.

“The decline of over 2,000 pubs since 2005 reflects the real change and challenges this sector is dealing with. Pubs, restaurants, and hotels employ over 207,000 people which is 8.3 percent of all employees in the country. These people and the businesses they work for are part of the economic and social fabric of their communities. Running such businesses in a climate where the cost of doing business is squeezing more and more is difficult. DIGI’s research shows that when the Government responds, particularly on heavy cost items like taxation, the sector responds. Punitive taxes like excise duty which are in some instances 12 times higher here than in other countries, are one such cost item.

“Ireland’s excise on spirits and beer is the third highest in Europe, while our excise on wine is the second highest in Europe. We have some of the highest excise duties in the world and the second highest in Europe overall.

“These businesses are integral to Ireland’s tourism offering. We need to take that consideration into account too. We are calling on the Government to deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to the hundreds of small businesses in our sector struggling to stay open. We have costed, considered plans on how to do this and welcome engaging with the Government and others on our proposals,” she said.

This latest analysis comes on top of recently published data by the Restaurants Association of Ireland which found that 283 food-led businesses such as restaurants, cafés and gastro pubs closed in the last six months of 2023, with a further 212 such businesses shuttered so far this year.

Commenting, author of the report, Professor Foley said: “This analysis verifies the consistent trend we have been seeing with pub numbers in every part of the country. There is clearly a variation on closures between counties which broadly sees rural areas adversely impacted. The continuing decline is taking place against a backdrop of societal change and cost of business strains. Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products.

“We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder. Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever rising. Energy, insurance, and other cost line items continue to rise, many by double digits.

“The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe,” he said.