The cliffs of Dooneen are indeed between Ballybunion and Beale in North Kerry. The song was written by a man by the name of Mc Auliffe, he was from Lixnaw, Co. Kerry but wrote the song when he was a laborour with a family named Joy, who lived close to Dooneen point.
In the old version of the song there is a verse that goes.
The sand hills of Beale are glorious and grand
and the old castle ruins stands out on the strand
It is there you will see every lad an colleen
moving round to the slopes by the cliffs of Duneen.
There was a copy of the original song in the Shannon side annuals around the 60s.
Enjoy the song,