Mayo at risk of losing one of its greatest economic drivers

by Cathal Sheridan

Anyone who has spent time in the west knows there is nowhere quite like it.

Our beautiful scenery, our communities, our culture, and the warmth of the welcome we give to visitors are recognised all over the world.

Every year, millions of people travel here because they want to experience something they simply can't find anywhere else, and in doing so they support local businesses, create jobs and help drive the economy of the entire region.

Among those experiences sits one institution that is recognised across the world as uniquely Irish.

The traditional Irish pub.

Few things are more closely associated with Ireland than the traditional pub. It has become one of the defining features of our tourism offering, with research showing that overseas visitors regularly cite it as one of the main reasons they choose to come here.

Ireland rightly invests millions promoting itself overseas, and that investment has paid off. But at the very same time, we're quietly allowing one of our greatest economic assets to underpinning this to disappear.

That should concern far more than publicans.

It should concern everyone whose livelihood depends on the long-term success of the western economy.

The pub is where visitors experience traditional music for the first time. It's where they meet local people, hear local stories, and enjoy the kind of welcome that leaves a lasting impression long after they've returned home.

That experience is authentically Irish.

It exists because generations of publicans have invested in businesses that are deeply rooted in their communities.

Once those pubs disappear, they are rarely replaced.

For context, Dublin has lost just over 1% of its pubs since 2005. Across the rest of Ireland, the figure is almost 28%.

Some of the steepest declines have been in counties that are central to the west's economy.

Clare has lost almost 31% of its pubs since 2005, followed by Mayo (30%), Donegal (29%), Leitrim (29%) and Galway (26%) - all above the national average decline of almost one in every four pubs.

Every closure means another family business lost, another employer gone and another empty premises on the main street.

But the impact stretches far beyond the pub door.

It affects accommodation providers, local musicians, food producers, drinks suppliers, taxi operators, and countless other businesses.

Most importantly, it chips away at a key pillar of our social fabric.

Labour costs, electricity, insurance, commercial rates and water charges have all risen sharply in recent years.

While the price of a pint has increased, publicans now retain a smaller margin on every sale than they did a decade ago because those rising costs have eaten away at profitability.

Traditional pubs cannot continue to absorb this relentless increase in operating costs.

Government's decision to restore the 9% VAT rate for food services was a welcome recognition that hospitality businesses needed support.

However, around two-thirds of rural pubs do not serve hot food and therefore receive little or no benefit from that measure.

That is why the Vintners' Federation of Ireland has proposed an On-Trade Sustainability Scheme as part of Budget 2027.

The proposal would provide targeted support through a refundable tax credit linked to verified supply chain costs of eligible draught products, helping those traditional pubs facing the greatest commercial pressures while continuing to serve their communities.

Governments routinely recognise the strategic importance of sectors that generate wider economic value through targeted tax measures.

We provide tax credits for film production, digital gaming and unscripted television production.

A production company can film in a pub and receive financial incentives to do so. The pub receives nothing.

If we continue to allow them to disappear, we won't simply lose another business on the main street.

We'll lose family businesses that have served communities for generations. We'll lose local employers. We'll lose places where visitors experience the very best of Ireland and where communities come together.

The Government now has an opportunity in Budget 2027 to recognise that value and act before more of these businesses are lost.

If they don't, the situation in 12 months' time will be much more sobering.

(Colin Sheridan is president-elect of the Vintners' Federation of Ireland)