BUSINESS AND ECONOMIC EVIDENCE 

The biggest stumbling block to all workplaces becoming genuinely smokefree is the hospitality-gambling lobby - which works to delay and weaken these laws by raising fears that they hurt businesses and cost jobs.

In their media statements and approaches to governments, these interests routinely:

THE FACTS:

1. Smokefree laws do NOT harm general hospitality trade or jobs.  All available independent studies of smoke bans have shown that their impact on hospitality businesses generally is either neutral or beneficial. Overall trade in pubs, clubs, cafes and restaurants does not suffer - see worldwide evidence below. Well, it makes sense, doesn’t it – almost 80% of the population are non-smokers; many people avoid smoky venues altogether - including many people with heart, respiratory or other conditions – not to mention pregnant women. All these people are barred by smoky places; they and many others would be attracted to smokefree venues.  The only revenue "glitch" associated with smokefree laws has been in gambling revenue...

2. Impact of smokefree laws on gaming revenue is fairly small and mostly temporary.  Tighter smokefree laws have sometimes been associated with a "hiccup" in revenue caused by breaking the link between the twin addictions of smoking and gambling. This revenue is based on exploiting what the gaming industry calls "the trance-inducing ritual" of simultaneously smoking and gambling. Can such revenue be justified?

3. Any loss of gaming revenue is more than offset by massive health savings to the community and governments. Smoking rates fall as a consequence of smokefree laws (see effectiveness) and harm from secondhand smoke exposure is also reduced. Result: huge savings in health costs, insurance and much more.

Below is some of the AUSTRALIAN and WORLDWIDE ECONOMIC EVIDENCE  (more on our effectiveness page).   
For more on the tobacco industry's misleading arguments worldwide, see the (US) TobaccoScam website  

 

AUSTRALIAN ECONOMIC EVIDENCE

National:
Pubs and clubs demand "licence to kill" by keeping workers in the smoke
 10/12/08: SmokeFree Australia has hit back against an aggressive hospitality industry scare campaign that seeks to block safely smokefree workplaces by whingeing about "lost" gaming revenue. The industry claims are misleading, making wrong assumptions and ignoring other factors.   See  SmokeFree Australia media release 10/12/08


Report shows minimal revenue impact from smoking bans
June 2007:  A report by Allen Consulting to the NSW government shows little or no impact of smoke bans on hospitality trade revenue in Queensland, WA and Tasmania; and minimal impact on gaming revenue likely in NSW (around 5.4%, disappearing in two years).  See the Allens report, June 2006  pp. 21-26


Turnover healthy in Australian pubs and clubs after indoor smoke bans 
9/2/07: Figures from the Australian Bureau of Statistics quoted in an ABC TV news report show claims by the hotel/gambling lobby of harm to pub and club trade from smoke bans are unfounded. The report says turnover in WA venues has gone up by 8.9% since their indoor ban in July 2006; Tasmanian venues have been steady since their indoor ban in January 2006; and Queensland trade has fallen a very slight 2.3% since their July 2006 ban. These are seasonally adjusted figures and are consistent with worldwide experience.    See  ABS details  Go to Table 20 and look at figs for Hotels and Licensed Clubs in various states month by month.


Pokie-smokers on the road to ruin: Australian research
 Australian research says smokers who play poker machines are more likely to face financial hardship - many finding themselves unable to pay bills or having to ask family , friends or charities for help. The study, from the National Institute of Economics and Industry Research, was presented to the recent National Tobacco Control Conference.   See the Quit media release...  See the study on slideshow


NSW:  Manly's diners embrace smokefree al frescoes
22/9/09: A survey of dining businesses in the northern Sydney beachside suburb of Manly show strong support for the smokefree outdoor dining policy introduced over the past four years. The survey of 36 businesses showed: 
- over 85% of businesses thought introducing the policy was not difficult;
- two-thirds of businesses felt customers were were happy with the change, only 8% feeling they were not; and
- two-thirds felt the change had had no impact on their trade, less than 14% feeling there was an ongoing impact (not specified whether positive or negative).

See  Manly Council media release 22/9/09    and  survey summary table 


People attracted to smokefree dining by more than 7:1
Sept 2009: NSW government report on Adult Health in NSW 2008 shows people attracted to smokefree dining outnumber those deterred by more than 7 to 1.   See  report   

Tasmania:  Smokefree laws have "no impact" on Tasmanian bar trade
16/7/09: A study of hospitality trade in Tasmanian pubs and clubs from 2002 to 2007 shows that smokefree licensed venue laws introduced in January 2006 "protects hospitality workers and patrons from exposure to second-hand smoke and has had no adverse effect on sales turnover."  See study in Tobacco Control journal 

Queensland: Minister says gaming hiccup outweighed by health gains 
5/8/07: Queensland's Deputy Premier and Treasurer Anna Bligh has said in a refreshing change from usual pollies' bleating about gambling losses from smoke bans, acknowledging a revenue hiccup: "We are in no way disappointed with any revenue drop. Every dollar we miss here is more than made up by what we won't have to spend on smoking-related health matters now and in the future."  See extract of her  media release    Smokefree bars help quitting, attract custom: see 2006 government report    

WA: Smokefree pubs and clubs popular with patrons and help quitters
 17/1/07: A Curtin University survey in Western Australia shows smokefree licensed venue laws introduced in July 2006 have attracted patrons, and have deterred few smokers from going out.  See Cancer Council WA media release 17/1/07    See survey backgrounder and summary    

SA: No harm to restaurants from smoke bans.
11/8/02: See South Australian dining study  

 

WORLDWIDE ECONOMIC EVIDENCE
World:  Smoking bans help health and quitting - and don't hurt business: WHO report 
29/6/08: New reports from scientists at the World Health Organisation say smokefree legislation prevents heart disease, helps quitting and protects children - and without harming business.  See  Reuters report 29/6/08 

UK: There'll always be an England... despite the pro-smoking lobby's predictions
 October 2007: As smoke bans in totally enclosed areas of English pubs approached, the opposition circulated the usual scare stories. So what really happened after July 1, 2007? Are England's pubs empty but for the armies of under-cover smoke police? Check out this review of how things have really turned out for health, quitting, and business.  See  ASH UK report, 10/07     Staff smoke exposure falls 95% with minimal trade impact:  See  UK Guardian report 1/10/07 

Business booms in smokefree Scots pubs
 3/11/06: leading Scottish pub chain J.D. Wetherspoon reports a sales increase of 5% in the three months since Scotland's total indoor smoke ban, compared with the same period last year. Once again the predictions of economic ruin have proved utterly groundless - the worldwide experience.   See  report 3/11/06 in The Scotsman 

But smokefree workplaces DO hit tobacco industry profits...
Ay, there's the rub: February 2005 study in British Medical Journal  shows smokefree workplaces will hurt one business: the tobacco business.  So now we know why there's been such a ferocious battle by tobacco-friendly interests to delay and weaken smokefree pubs and clubs.  See report 12/2/05 with links to study extract

USA:  No job losses from smokefree policies in Minnesota cities
29/1/09: Study of bar and restaurant employment in ten cities in US state of Minnesota finds "no significant differential economic effects" between cities with comprehensive, partial or no (beyond state law) smokefree workplace policies. Authors conclude that their findings "support the adoption of comprehensive [clean indoor air] policies to provide all employees protection from environmental tobacco smoke exposure."  See  Prevention Science journal  abstract

Lives saved, no trade loss: NY Mayor lashes "scare campaign"
 14/6/06: New York City Mayor Bloomberg has told health leaders the city's smokefree bars and restaurants policy has saved lives with no loss of business, despite what he calls a "massive and well-funded scare campaign" predicting doom for tourism and hospitality trade.   See  excerpts from Bloomberg speech 14/6/06    See  NY Clean Air Act impact report July 2006   Smokefree laws lead to more trade in Rhode Island:  see  report 4/10/05   Massachusetts: sales and employment in restaurants and bars rise within 6 months of new laws - see globe.com report 4/4/05   Florida: trade unharmed, jobs increased - see  report 29/6/04   Texas: El Paso bars and restaurants not harmed by smokefree law - see study    See Tobacco Scam ads  with reports from from successfully smokefree US venues

NZ:  Smoke bans do no harm to bars and clubs trade
8/12/05: A year after New Zealand bars went indoor-smokefree, its Ministry of Health has released an amalgam of results of studies about public attitudes, second-hand smoke exposure in workplaces/ bars, economic data and patronage trends since the changes took effect on 10 December 2004. The findings show, as they have everywhere: health benefits, community support and no harm to business.  Download pdf of the report (under 10 December) at  www.smokefreelaw.co.nz . See health groups' assessment (under 8 December) at  www.asthmanz.co.nz.  Figures from NZ's Retail Trade Survey (August 2005) also show smoke bans have done no harm to bar and club trade. See  NZ retail trade survey  Go to the Excel tables, particularly tables 1 and 8 (which give seasonally adjusted figures)

Europe/World:  Smokefree places haven't hurt profits worldwide
 2/6/05: A new European report shows smokefree places have not harmed business anywhere in the world.  See Smokefree Europe statement 2/6/05     See full report 

International study: Smoke bans do no harm, even good for business
2003: Going smokefree will NOT hurt hospitality businesses - more likely, help them. An international review of 106* studies on economic impact of smoke bans shows that all objective, credible studies point to no harm, some even positive good.
See the Smokefree '03 media release...     See the Scollo review     More from co-author, the Victorian Centre for Tobacco Control.
* New studies have been added to this summary table since the original 98 - it now contains 106 studies assessing the economic impact of smoke-free policies in the hospitality industry. 

Ireland: Pub trade healthy after indoor ban
 14/9/05: Pub sales in the Republic of Ireland have recovered from their pre-smoke ban slump, say latest figures. Trade was falling across Europe before the indoor ban was introduced, with more choosing to drink at home; now the figures are picking up. See  Irish update, Sept 2005

Canada: Ottawa bars, restaurants suffer no harm to food or drink sales
 June 2003 study shows no negative impact from total indoor smoke bans in Ottawa, Canada.   See media release 6/03     See the study  

 

ECONOMIC ARTICLES AND RESOURCES

AND WHO IS BEHIND THE HOTELS ASSOCIATION?  
Easy to see why the AHA has lobbied so hard against smokefree laws when we see this:

Tobacco sponsorship of hotels conference "offensive"
15/7/09: Tobacco company sponsorship of the national Australian Hotels Association convention is offensive to workers threatened by secondhand smoke daily in their workplaces, says the LHMU hospitality union. The LHMU, a member of SmokeFree Australia, says the AHA's acceptance of British American Tobacco sponsorship of the event is a "slap in the face" for workers facing secondhand smoke harm in pubs.  See  LHMU media release 15/7/09 

No butts best for business
Excellent opinion piece by Australian lawyer and management consultant Sarah Henderson (8/10/03) argues that smoky workplaces make bad business and no legal sense.

US smokefree restaurant and bar ads 
Look at these US ads trumpeting the benefits to hospitality businesses of going smokefree.

 

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