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Economic Impact of Smoke-free
By-laws on Businesses
Here are the common misconceptions opponents use to raise concern in
communities where by-laws to restrict or eliminate smoking in public
places are in the works.
Smoking restrictions will threaten jobs and the economy.
Restaurants and bars will lose smoking customers and may go out of
business.
Without exception, every objective study using official sales tax
data shows that smoke-free legislation has no negative impact on
restaurant, bar, hotel and tourism receipts, according to The
Economic Impact of Smoke-Free Workplaces: An Assessment for Nova
Scotia (2001) by Ronald Colman of GPI Atlantic. Also according to
Colman, there can be an initial decline in receipts during the first
one to two months following enactment, but there is no evidence of
any overall or aggregate decline in the longer term. Indeed, several
studies found that restaurant, hotel and tourism receipts increase
following smoke-free legislation.
It may be that smoke-free by-laws are actually good for business.
Non-smokers may frequent eating and drinking establishments more
often and smokers do adjust to the new rules. Money not spent on
tobacco can be spent on other things and help boost the local
economy. As well, studies show that smoke-free by-laws can reduce
the overall smoking rate, thereby freeing up additional money that
was previously spent on tobacco.
Non-smoking by-laws offer other potential benefits: Cleaning and
maintenance costs may decline, and employee absenteeism due to
respiratory illnesses can be reduced.
So, for the record:
Smoking restrictions have not been shown to threaten jobs and the
economy.
Restaurants and bars will probably lose some smoking customers. But
they will probably gain non-smoking customers, and some of their
smoking customers will return.
If some establishments do go out of business (a common occurrence in
the hospitality industry), it is unlikely that a non-smoking by-law
will be to blame.
Colman, Ronald (2001). The Economic Impact of Smoke-Free Workplaces:
An Assessment for Nova Scotia, GPI Atlantic.
US Public Health Service (2000). Reducing Tobacco Use, A Report of
the Surgeon General. US Department of Health and Human Services.
Atlanta, Georgia. 193.
