New York's smoker-free regulations: Effects on employment and sales in the hospitality industry

Abstract

Contrary to claims that smoke-free regulations cause decreases in hospitality-industry sales, this study determined that neither sales nor employment is hurt when smoke-free regulations are put in place. That conclusion is based on an examination of changes in restaurant's and hotel's business levels in five populous New York State jurisdictions that have implemented smoke-free regulations (namely, Erie, Monroe, Suffolk, and Westchester counties, and five boroughs of New York City). Using states sales data and employment data for eating and drinking establishment and for hotels, the study compared those statistics for the year before the regulation was implemented with the same statistics for the first year following implementation. The regulations in the counties being studied require a 100-percent smoke-free dining area unless such an area is separately enclosed and separately ventilated. The study examined trends in per-capita levels of sales and employment, as well as the fraction of restaurant sales to total sales. Additionally, a combined model considered data from all counties in the state to compare sales and employment outcomes. Instead of damaging hospitality sales and employment, the onset of smoke-free regulations was associated with increases in per-capita taxable sales for eating and drinking establishments and hotels (controlling for other economic factors). Employment rose in hotels, while no measurable change was observed for employment in restaurants operating under smoke-free regulations. The study concludes that smoke-free regulations have not been bad for business in New York State restaurants or hotels.