Donegal’s pub population has taken a hit in recent years with 91 premises closing down since 2005.
The number of pubs in the county has fallen by 20.1% between 2005 and 2018, according to industry analysis by the Drinks Industry Group of Ireland (DIGI).
362 licenses were renewed in Donegal in 2018, compared to 453 in 2005.
DIGI say the decline in pub numbers is a stark reminder of the pub’s continued decline in rural Ireland, while many pubs were forced to shut up shop during the recession.
The latest study of Donegal’s drinks and hospitality sector in 2017 showed that the industry enables 7,443 jobs and €168 million in tourism spend in the constituency.
DIGI is calling on the Government to reduce alcohol excise tax by 15% over the next two years to ease the pressures on the pub industry.
They say that pubs are a significant part of regional Ireland and play a crucial role as community meeting points in rural and isolated parts of the country.
Padraig Cribben, DIGI member and CEO at Vintners’ Federation of Ireland said:
“The number of rural pubs are down 20% in the period from 2005 to 2018 which is hugely worrying. This equates to 1,535 rural pubs which are businesses that provide jobs, a hub in the local community for socialising and community integration and a cultural powerhouse which is among the main attractions for tourists visiting Ireland.
Mr Cribben added: “Considering this sharp decline in the number of pubs, we need to monitor this industry and ensure the necessary supports are in place to reverse this trend. While the Government committed to assist small rural businesses recover during the recession, business owners in the drinks industry were challenged by two increases in alcohol excise tax in Budget 2012 and Budget 2013.
“Our high alcohol excise tax slows the growth of these businesses and impacts their day-to-day operations and bottom line. We are calling on the Government to reduce excise tax to encourage the growth of our drinks and hospitality sector, return money to Irish consumers and make Ireland more competitive internationally, particularly ahead of a no-deal deal Brexit.”
