More than 1,500 pubs, hotels and restaurants have shut in the past five years, a survey has revealed.

And thousands of people have lost their jobs as licensed premises struggle to bring in business.

According to the survey, which was conducted by the Drinks Industry Group of Ireland (DIGI), it is pubs outside of the capital that are facing the bleakest future with one-in-three rural pubs saying they are struggling to survive.

The pessimistic outlook comes despite moves within the industry to woo customers.

The study, which was published today, revealed that licensed premises have suffered significant falls in revenue over the past five year.

It found the decline in business began in 2004. However, this rate has accelerated in the past 18 months.

The survey is the largest ever undertaken of the sector, and found that the 1,500 pubs, hotels, nightclubs and restaurants closed due to a combination of factors such as tighter drink-driving laws, the smoking ban and the shift to drinking at home.

The report also highlights the dramatic fall in employment and revenue in the drinks industry as well as the mounting toll of costs to the sector.

Most of the licensed premises surveyed are independent or family-run businesses, with pubs outside Dublin facing the bleakest future.

Entertainment

Since 2004 more than 80pc of licensed premises say they have taken measures to try and improve business, ranging from major refurbishments to adding a separate smoking area in two-thirds of cases.

Some 57pc have begun advertising for custom, while 44pc have introduced catering and 43pc have begun providing entertainment.

More than half of all licensed premises now serve food to try and diversify their business, the survey shows.

The Vintners Federation of Ireland and the Licensed Vintners' Association are to meet to highlight their concerns over the findings of the report, which was carried out by Dublin City University Business School.

Meanwhile, the Irish Hotels Federation has called for urgent budget measures to support tourism.

They want Finance Minister Brian Lenihan to abolish the €10 air travel tax which they said was putting off overseas tourists.

"As an island destination we need to do everything we can to attract visitors here, not create unnecessary barriers that make routes to and from Ireland less attractive," said IHF chief executive John Power.

They also called for local authority rates to be reduced by 30pc.

- Jane Last