Economic Impact

Economic Impact Stats of Significance

Hospitality industry impact nationwide

Numerous careful scientific and economic analyses show that smoke-free laws do not hurt restaurant and bar patronage, employment, sales, or profits.1
A 2010 analysis of economic outcomes of smoke-free laws stated, “There is clear evidence that smoke-free legislation does not hurt restaurant or bar businesses, and in some cases business may improve.” 2
Research studies consistently conclude that smoke-free policies do not have an adverse economic impact on the business activity of restaurants, bars, or establishments catering to tourists, with many studies finding a small positive effect of these policies.3
The Surgeon General’s 2006 Report on The Health Consequences of Involuntary Exposure to Tobacco Smoke concluded, “Evidence from peer-reviewed studies shows that smoke-free policies and regulations do not have an adverse economic impact on the hospitality industry.”4

Tourism industry and South Carolina

In constant dollars, smoke-free policies was associated with significant increase in the rate of change of hotel revenues in 4 localities, no significant change in 4 localities, and a slowing in the rate of increase (but not a decrease) in 1 locality.5
In Orange County, FL (Orlando), smoke-free policies had a positive effect on restaurant profits, and no statistically significant impact on the profits of hotels, motels and theme parks.6
City of Charleston revenues increased 5.9% in 2007 – 2008 after smoke-free policy went into effect.7
City of Mt. Pleasant revenues increased .02% in 2007 – 2008 after smoke-free policy went into effect.8
City of Greenville hospitality tax revenue increased from $5.4 million in 2006 to $6.1 million in 2008, $5.9 million in 2009, and $6.3 million in 2010 after smoke-free policy went into effect.9 Note: 2006 was the last year with no smoke-free policy and 2007 had 3-months of a smoke-free policy
The Myrtle Beach Area Chamber of Commerce has unanimously supported the efforts of Smoke Free Horry.

Tourist and consumer data

Results of the 2008 Zagat Survey of 132,000 Americans noted, “The verdict on smoking is overwhelming with 77% of diners saying they’d eat out less if smoking were permitted in restaurants, and only 2% saying they’d dine out more.”10

Smoking costs to business12

Lost productivity
- From 2001 – 2005 there was $5 billion from lost productivity among non-smokers exposed to tobacco smoke
- Smokers absent from work 7.7 – 10.7 days per year more than non-smokers
- Additional costs from non-smoker absences due to illnesses caused by exposure to tobacco smoke is $1,200 - $1,700 per employee
Insurance premiums and health insurance
- Health insurance premiums are up to 50% higher for smokers
- Fire/Hazard insurance is $11 - $21 higher per smoker
- Life insurances is $90 more per smoker per year for a $75,000 policy
- In South Carolina alone, nearly $73 million is annually spent health care expenditures related to the consequences of secondhand smoke
Cleaning and maintenance costs
- EPA estimates $7 billion in additional cleaning and maintenance costs in buildings that allow smoking
- Businesses that allow smoking indoors annually pays an average of $728 more per 1,000 square feet more in cleaning and maintenance costs compared to businesses that do not allow smoking indoors

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