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Allowing smoking in workplaces and public places is a drain on the economy. It imposes a heavy ... - page 2 / 2





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smOKe-Free eNVIrONmeNts: smOKe-Free LAWs beNeFIt tHe eCONOmY

  • A 2005 review of 115 studies from Australia, Canada, and United States found that “smoke-free legislation does not have a negative impact on the sales, revenues, profits and employment of restaurants, bars, hotels, and gaming facilities over the long term.”13

  • During the year after Mexico City’s 2008 smoke-free law, there was no significant negative impact on revenues, wages and employment levels in restaurants, nightclubs, bars and taverns. In fact, there were modest increases in wages and employment levels across all venues, and restaurants experienced a modest increase in revenue.14

  • In Argentina, a study of the smoke-free laws in Buenos Aires and four provinces showed that the laws did not negatively affect the sales at bars and restaurants. In the case of Buenos Aires, there is evidence that the smoke- free law led to a 7–10% increase in the sales at bars and restaurants.15

  • In the United States, state-specific studies find no negative impact of smoke-free laws on hospitality venues.

    • In the state of Minnesota, there was no significant change in bar or restaurant employment in both rural and urban regions following local smoke-free laws.16

    • Two years after the smoke-free law was implemented in the state of Washington, sales revenues were US$105.5 million higher than expected for bars and taverns.17

  • Despite concerns that New Zealand’s 2004 smoke-free law would reduce tourism, the country experienced a

    • 1.5

      % increase in overseas visitors and a 3.3% increase in

visitors’ expenditures in 2005.18

key messages

  • Exposure to secondhand smoke increases healthcare and medical costs.

  • Smoke-free laws can help businesses improve their profits by increasing worker productivity and decreasing costs associated with allowing smoking.

  • Smoke-free laws do not harm the hospitality industry. In some cases, smoke-free laws have a positive impact on the hospitality industry.

(1) Ross H. Economics of smoke-free policies. In: Partnership TSE, editor. Smoke free Europe makes economic sense: A report on the economic aspects of smoke free policies. Belgium: The SmokeFree Europe Partnership, 2005:13-17. (2) Behan DF, Eriksen MP, Lin Y. Economic effects of environmental tobacco smoke. Schaumburg: Society of Actuaries, 2005. (3) Royal College of Physicians. Passive Smoking and Children: A report by the Tobacco Advisory Group of the Royal College of Physicians. London: Royal College of Physicians, 2010. (4) Hauri DD, Lieb CM, Rajkumar S, Kooijman C, Sommer HL, Roosli M. Direct health costs of environmental tobacco smoke exposure and indirect health benefits due to smoking ban introduction. Eur J Public Health 2010. (5) McGhee SM, Ho LM, Lapsley HM, Chau J, Cheung WL, Ho SY, et al. Cost of tobacco-related diseases, including passive smoking, in Hong Kong. Tob Control 2006;15(2):125-30. (6) Juster HR, Loomis BR, Hinman TM, Farrelly MC, Hyland A, Bauer UE, et al. Declines in hospital admissions for acute myocardial infarction in New York state after implementation of a comprehensive smoking ban. Am J Public Health 2007;97(11):2035-9. (7) Lundborg P. Does smoking increase sick leave? Evidence using register data on Swedish workers. Tob Control 2007;16(2):114-8. (8) Parrott S, Godfrey C, Raw M. Costs of employee smoking in the workplace in Scotland. Tob Control 2000;9(2):187-92. (9) Javitz HS, Zbikowski SM, Swan GE, Jack LM. Financial burden of tobacco use: an employer’s perspective. Clin Occup Environ Med 2006;5(1):9-29, vii. (10) Centers for Disease Control and Prevention. Save lives, save money: Make your business smoke-free. Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2006. (11) World Health Organization International Agency for Research on Cancer. Evaluating the Effectiveness of Smoke-free Policies. IARC Handbook of Cancer Prevention. Lyon: WHO IARC, 2009. (12) 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. Tob Control 2003;12(1):13-20. (13) Luk R, Ferrence R. The economic impact of smoke-free legislation on the hospitality industry. Special Report Series. Toronto: Ontoario Tobacco Research Unit, 2005. (14) Guerrero Lopez CM, Jimenez Ruiz JA, Reynales Sigematsu LM, Waters HR. The economic impact of Mexico City’s smoke-free law. Tob Control 2011;Published online first. (15) Gonzalez-Rozada M, Molinari M, Virgolini M. The economic impact of smoke-free laws on sales in bars and restaurants in Argentina. CVD Prevention and Control 2008;3(4):197-203. (16) Klein EG, Forster JL, Erickson DJ, Lytle LA, Schillo B. Economic effects of clean indoor air policies on bar and restaurant employment in Minneapolis and St Paul, Minnesota. J Public Health Manag Pract 2010;16(4):285-93. (17) Boles M, Dilley J, Maher JE, Boysun MJ, Reid T. Smoke-free law associated with higher-than-expected taxable retail sales for bars and taverns in Washington State. Prev Chronic Dis 2010;7(4):A79. (18) Edwards R, Thomson G, Wilson N, Waa A, Bullen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of a new national smoke-free law in New Zealand. Tob Control 2008;17(1):e2.


smOKe-Free eNVIrONmeNts: smOKe-Free LAWs beNeFIt tHe eCONOmY

september 2011


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