Tobacco Documents Online

ECONOMIC IMPACT New York City Smoking ban The New York City , in effect since April 1995, is a convincing example of the negative economic impact of smoking bans in the HoReCa business. Materials include an executive summary of the Price Waterhouse Economic Impact study estimating the negative financial impact of the New York City smoking ban, in terms of lost customers, lost sales and lost jobs; results of surveys conducted after the ban took effect and media reactions to the introduction to the ban. All materials can be used with HoReCa officials and the media. 40 40 Econoinic Ianpact t'aue 1

New York City smoking ban in HoReCa establishments 0 40 I. ECONOMIC IMPACT STUDY - PRE-BAN Price Waterhouse economic impact study commissioned by the United Restaurant, Hotel and Tavern Association (ANNEX I): Estimated loss of : - more than 9.000 jobs - $ 410 million in sales in the first year alone. II. SURVEYS - POST BAN Two surveys were conducted with New York City restaurant owners and managers after the ban took effect in April 1995: 1. Results of a New York Tavern and Restaurant Association sponsored survey conducted by Price Waterhouse (ANNEX II) show that : • 5 1 % of business owners/managers said that the NY City smoking regulation had been bad for business. • 41% reported lower gross sales receipts compared to the same period a year ago. • Among those reporting lower gross sales receipts - 83% said that receipts were down more than 5% - 52% said receipts were 15% lower than last year's results. • Among those restaurants which have a bar area where food is served - 52% indicated that more customers asked to be seated in the bar area so they can smoke. 2. In a National Smokers Alliance sponsored survey (ANNEX III) • 68% of restaurateurs stated that the smoking ban had disrupted their business • 56% stated that their sales decreased since the introduction of the regulation • 81 % thought that the ban is an example of "government over- regulation of small business" • 84% of Restaurateurs would choose to have their establishment accommodate both smokers and non - smokers Economic Impact Pa-ge 2

• 91% said that their customers were satisfied under the old policy of separate smoking and non - smoking sections. 3. Another survey for the Tavern and Restaurant Owners Association questioned 2008 residents - three quarters of whom were non-smokers - about their views on the smoking ban. (ANNEX IV) • 70 % of all respondents chose the policy of accommodating smokers and non-smokers. 0 4. Results of a survey by the Cornell University School of Hotel Administration of regular customers in New York restaurants (ANNEX V) conducted seven months after the ban came into effect show that among smokers : • 37 % report dining out less frequently • 40 % spend less time in a restaurant when dining out • 59 % specifically seek out HoReCa establishments that allow for smoking • 40 % avoid even their previously favourite restaurants that do not allow for smoking. III. PRESS COVERAGE: The introduction of the NY City smoking ban has been widely covered in the US and international media. The overwhelming majority of press articles condemned the Ban as excessive legislation and reported customers' opposition • to the ban (ANNEX VI). Economic Impact Page 3