Date: Monday 01, 2007
Organisation: Center for Tobacco Control Research and Education, University of California, San Francisco
Keywords: economics hospitality industry policy smokefree
Effects of Smoke-free Laws on Bar Value and Profits
The tobacco industry has claimed that smoke-free bar laws caused bar revenues to decline by 30%. After we controlled for economic variables, we found that bars located in areas with smoke-free laws sold for prices that were comparable to prices for similar bars in areas with no smoking restrictions. Other studies have reported that sales did not decline, and we also found that neither price nor sales declined. Therefore, bar owners’ concerns that smoke-free laws will reduce the value of their bars are unfounded.