The smoke-free law :economic impact on bars and restaurants -

Abstract

The economy of Tobacco has been a controversial debate recently, especially after the implementation of the smoke-free law in many countries around the world. There are economic impacts regarding these policies on private work places but more particularly on bars and restaurants (hospitality sector). The tobacco industry argued that this smoke free policy will negatively affect the business of bars and restaurants through a reduction in revenues. Other studies conducted in different countries had shown that this law-regulation didn’t harm the profits of the hospitality sector, but instead it can even increase them. This paper presents first, the current literature on this topic comparing different countries around the world and an analysis of the tools used and their applicability. Second, it will show how this type of laws affects the sales and profits of the hospitality sector in many countries through quantitative and qualitative methods used for such an analysis in the US and Europe showing no negative impact on restaurants and bars. And finally, it will expose the new Lebanese legislation about the restriction of smoking in enclosed bars-restaurants and the debate that it has triggered at the national level through opposed studies (some showing positive and others negative economic impact of the ban), the politics, the reactions of the businesses, and how the interest groups theory will be applied in this country, like in other countries, exerting pressures from proponents and opponents of the ban. In the long term, the smoking ban will provoke positive impact on the revenues of bars and restaurant.