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Fact Sheet

Smoke-Free Policies Do Not Hurt the Hospitality Industry

(October 2006)

• Evidence from peer-reviewed studies that examine objective measures such as taxable sales revenue and employment levels shows that smoke-free policies and regulations do not have an adverse economic impact on the hospitality industry.¹
• A comprehensive review reported that peer-reviewed studies examining objective indicators such as taxable sales revenue and employment levels have consistently found that smoking restrictions do not have a negative economic impact on restaurants and bars.²
• An in-depth analysis of tax revenue data in California from 1990 to 2002 found that the 1995 state smoke-free restaurant law was associated with an increase in restaurant revenues. The analysis also found that the 1998 state smoke-free bar law was associated with an increase in bar revenues.³
• An evaluation of the New York state tobacco control program found that the state smoke-free law had no impact on sales in full-service restaurants and bars.⁴
• Restaurant and bar revenues in New York City increased by 8.7% from April 2003 through January 2004 following implementation of the city’s smoke-free law. Employment in the city’s restaurants and bars increased by approximately 2,800 seasonally adjusted jobs from March 2003 to December 2003. The number of restaurants and bars in the city remained essentially unchanged between the third quarter of 2002 and the third quarter of 2003.⁵
• No declines in total restaurant, bar, or mixed beverage revenues were observed in El Paso, Texas during the first year after that city adopted a smoking ban in all workplaces and public places, including restaurants and bars.⁶
• One of the earliest economic impact studies found that local smoke-free restaurant laws had no statistically significant effect on restaurant sales as a fraction of total retail sales or on the ratio between sales in 15 cities with smoke-free restaurant laws and sales in 15 matched, similar cities. The study also found that local smoke-free bar laws had no statistically significant effect on bar sales as a fraction of total retail sales, on the ratio between bar sales in seven cities with smoke-free laws and bar sales in seven matched, similar cities, or on the fraction of all eating and drinking place revenues reported by establishments that sell all types of liquor. The study concluded that smoke-free ordinances do not have a negative impact on restaurant or bar sales.⁷
• A study found that Florida’s 2003 smoke-free law did not have significant negative effects on sales and employment in the state’s leisure and hospitality industry.⁸

References

1. U.S. Department of Health and Human Services. The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General. Atlanta, Georgia: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, Coordinating Center for Health Promotion, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2006 [cited 2006 Oct 23]. Available from: http://www.cdc.gov/tobacco/data_statistics/sgr/sgr_2006/index.htm.
2. Scollo M, Lal A, Hyland A, Glantz S. Review of the Quality of Studies on the Economic Effects of Smoke-Free Policies on the Hospitality Industry. Tobacco Control. 2003;12(1):13–20.
3. Cowling DW, Bond P. Smoke-Free Laws and Bar Revenues in California—The Last Call. Health Economics. 2005;14:1273–81 [cited 2006 Oct 23].
4. New York State Department of Health. Second Annual Independent Evaluation of New York’s Tobacco Control Program, 2005. (PDF–294KB) [cited 2006 Oct 23]. Available from: http://www.health.state.ny.us/prevention/tobacco_control/docs/
   2005-09_independent_evalutation.pdf.
5. New York City Department of Finance, New York City Department of Health and Mental Hygiene, New York City Department of Small Business Services, New York City Economic Development Corporation. The State of Smoke-Free New York: A One-Year Review. New York, New York: New York City Department of Health and Mental Hygiene, 2004 [cited 2006 Oct 23].
6. Centers for Disease Control and Prevention. Impact of a Smoking Ban on Restaurant and Bar Revenues—El Paso, Texas, 2002. Morbidity and Mortality Weekly Report [serial online]. 2004;53(7):150–152 [cited 2006 Oct 23].
7. Glantz SA, Smith LRA. The Effect of Ordinances Requiring Smoke-Free Restaurants and Bars on Revenues: A Follow-Up. American Journal of Public Health. 1997;87:1687–1693 [cited 2006 Oct 23].
8. Dai C, Denslow D, Hyland A, Lotfinia B. The Economic Impact of Florida’s Smoke-Free Workplace Law. Gainesville, Florida: Bureau of Economic and Business Research, Warrington College of Business Administration, University of Florida, 2004 [cited 2006 Oct 23].

For Further Information

Centers for Disease Control and Prevention
National Center for Chronic Disease Prevention and Health Promotion
Office on Smoking and Health
E-mail: tobaccoinfo@cdc.gov
Phone: 1-800-CDC-INFO

Media Inquiries: Contact CDC's Office on Smoking and Health press line at 770-488-5493.

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