Pub Closures

Tadg O’Sullivan, Chief Executive of the Vintners’ Federation of Ireland, which represents licensees outside Co. Dublin, estimates that 600 pubs have closed since the ban (out of a total of c. 8,500). No closures have been reported in Co. Dublin. This appears to be due to the different economic conditions and specifically Irish factors, including the restricted number of licenses in Dublin.

The fixed number of Dublin licenses, and its sharply rising population (500,000 in 1920, 1 million in 2004) has created a market with a relative undersupply of licensed premises – with hence high incomes and values. The converse is true in country areas where the number of licenses is relatively high versus the population, as the population has shifted to the cities and especially Dublin. In this situation many pub operators are undercapitalised and therefore lack resources to survive a down turn in their trade. It is likely that for many the smoking ban was the ‘last straw’ that sent them out of business.