Letterkenny: Encyclopedia II - Letterkenny - History and economy

Letterkenny - History and economy

Letterkenny began as a market in the 17th century (thus starting before the Great Famine) and was the first crossing point of the River Swilly. Letterkenny achieved town status in the early 1920s following the partition of Ireland, when the Irish punt replaced the British Pound Sterling as the national currency of Ireland. This led to many Irish banks that had been previously located in the closest city, Derry (now in Northern Ireland), being forced to open branches in Co. Donegal, including in Letterkenny. Public services and industry followed the banks and led to Letterkenny being the fastest growing town in the European Union for many years.

The town's major employers include the General Hospital (which grew from St. Conal's Psychiatric hospital, Pramerica, and the Department of Social and Family Affairs. There has been a significant decline in the manufacturing base, however employment has grown in the service sector. Since 2002 there has been a significant expanision in the retail sector. Allied to this growth has been the development of the cultural infrastructure. This includes the opening of An Grianan theatre and the development of a new arts centre. The town also draws in significant numbers of people to its pubs, restaurants and nightclubs. Its proximity to the border with Northern Ireland, along with its geographic isolation from the rest of the Republic of Ireland, has led to Letterkenny (and indeed, the rest of Co. Donegal) diverging in attitude substantially from that of either side of the border. The economy in the town is strongly dependent on cross-border trade, and times of economic boom are determined mostly by the currency exchange rate between the Euro and the British Pound.

Having a number of pubs and nightclubs, there is a very significant social scene especially at the weekends. It is a very popular hen and stag destination though the numbers are less than during the 80's when many buses brought revellers from many parts of Northern Ireland.

Adapted from the Wikipedia article "History and economy", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki