The Economics
The most frequent argument put forward by those who oppose 100% smoke-free legislation is that there will be a negative economic impact on business, primarily in restaurants and bars. In reality however, smoking bans are actually good for business.
While there is some indication of short-term fluctuations in sales immediately following smoke-free legislation implementation, there is no evidence of any long-term negative impacts in restaurants or other hospitality venues.
In fact, all reliable, peer-reviewed economic impact studies on business show either no economic effect, or a positive one after a smoke-free law goes into effect.
According to a study conducted for Health Canada in 2004, without exception, every objective study using official sales tax data demonstrates that smoke-free legislation has no adverse impact on restaurant, bar, hotel and tourism receipts.
Smoking bans do however have a negative impact on the profit margins of the tobacco industry!
This is a public health issue, and the liberal government should be concerned about protecting the health of all British Columbians. The economic argument has never been a reason to oppose smoke-free environments, and never was a valid argument.
If the discussion were about exposure to asbestos, we would not be discussing the economic impact of removing this toxic compound from buildings.
What Does the Tobacco Industry Say?
The tobacco industry has mobilized opposition to smoke-free policies for years by working through the hospitality industry to confuse the public and deny the truth about second-hand smoke.
In addition to denying scientific evidence that exposure is hazardous to non-smokers, those who oppose restrictions on smoking usually raise the economic and/or ventilation argument to weaken or stop smoke-free policies from being implemented. These arguments are non-starters.
Industry claims of declining revenues after implementation of smoking bans, when checked against objective sales tax receipts, have been proven false. Clearly, the major beneficiary of Designated Smoking Rooms and permissive smoke-free regulations is the tobacco industry.
Important Links
Summary of Studies Assessing the Economic Impact of Smoke-Free Policies in the Hospitality Industry.
By Scollo Michelle and Lal Anita, VicHealth Centre for Tobacco Control. Melbourne, Australia, Updated July 2005
The Economic Impact Of Smoke-Free Workplaces: An Assessment For British Columbia
Prepared by: Jennifer Bridge, M.A.andBill Turpin For Health Canada, March 2004
Economic Impact of Smoke-free Laws: Case Studies 2005
Americans for Non-Smokers Rights
Review of the Quality of Studies on the Economic Effects of Smoke-Free Policies on the Hospitality Industry
By M Scollo, A Lal, A Hyland, S Glantz. Tobacco Control. 2003; 12:13 -20 (Article Citation)
The Economic Impact of a Smoke-Free Bylaw on Restaurant and Bar Sales in Ottawa, Ontario, June 2003
The Economic Impact of Smoke-Free Workplaces: An Assessment for Nova Scotia
By Ronald Coleman, Ph.D., GPI Atlantic, September 2001, Halifax, Nova Scotia.
The Economic Impacts of the Proposed Amendment to the ETS Regulation, Pacific Analytics Inc.
Prepared for the Workers' Compensation Board of British Columbia, February 2001
