117 pubs closed in Mayo in last 16 years
DRINKS Industry Group of Ireland analysis shows 1,829 pubs closed in Ireland between 2005 and 2021, with a decline of 25.1% (117) in Mayo, including 22 closures in the county over the pandemic period.
A new report from the DIGI shows the stark decline in the number of pubs doing business throughout the country since '05, with a 21.2% decline.
The report highlights that many public houses operate at relatively low levels of sales volume. One of the factors which influence business sustainability at these low sales volumes, which is within the control of the government, is the high Irish alcohol excise level which represents a significant cost on the business.
Paul Clancy, DIGI member and CEO of the Vintners Federation of Ireland, described the report as ‘alarming’.
He commented: “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 on DIGI’s report, economist and Associate Professor Emeritus, DCU, Anthony Foley, noted: “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.”