Report shows decline in pubs, clubs

More than 1,500 pubs, clubs, hotels and restaurants have shut their doors in the past five years according to a new report by the Drinks Industry Group of Ireland.

Read the full report

The report published today points to falling employment and revenues in the industry, alongside rising costs.

This is the biggest survey of licensed premises in this country, according to the Irish Independent, and was carried out by Dublin City University Business School.

The Drinks Industry Group of Ireland says the evident decline in the industry began before 2004, when the last industry-wide survey was conducted.

Since that time, four fifths of licensed premises surveyed say they have undertaken measures to improve business.

However, today's report reveals that the decline has accelerated in the past 18 months.

In seeking to identify the causes of the closures, the report points to a combination of factors including tougher drink-driving laws, and the smoking ban.

Pubs and other licensed premises outside Dublin face the most uncertain future, with one in three rural pubs predicting that they will struggle to survive.

Over half of those surveyed said that they had started advertising for custom, with many also now providing entertainment.

Calls for excise duty & VAT reduction

Separately, Food and Drink Industry Ireland has called on the Government to reduce excise duty by 20% and the VAT level to 18% in advance of Christmas.

The group, which represents food and beverage companies, believes these reductions will help reduce prices to consumers and stop the expected exodus of Irish shoppers to Northern over the Christmas period.

FDII Head of Consumer Foods Shane Dempsey said the recent TNS World Panel research showed that 250,000 Irish people travel to Northern Ireland to shop.

It is estimated that this has cost the Exchequer in the region of €430m.

Mr Dempsey said retailers and suppliers alike are depending on the Christmas period to alleviate the pressure of the economic downturn and stave off further job losses in 2010.