Since its passage in July 2003, a significant amount of anecdotal evidence has suggested that New York’s statewide smoking ban has negatively affected bars, clubs and taverns across New York State. Countless media accounts have described a dramatic drop in customers for bars throughout the state, as well as a steep decline in bar revenue and significant job losses.
To date, the only statistical evidence put forth to gauge the ban’s economic impact has analyzed the combined revenue and job totals from both restaurant and bar industries. The following economic study is the first detailed economic analysis focused exclusively on the economic effects of the state smoking ban on New York State’s bars. This report measures the direct and indirect economic impact of the New York smoking ban on bars, taverns and clubs*.
The major findings are that the passage of the state smoking ban in 2003 has directly resulted in a dramatic loss in revenue and jobs in New York’s bars, taverns and clubs.
Specifically, the following statewide economic losses have occurred in New York’s bar and tavern industry as a direct result of the statewide smoking ban:
* 2,000 jobs (10.7% of actual employment)
* $28.5 million in wages and salary payments
* $37 million in gross state product
In addition, there are indirect losses to other businesses which supply and service the state’s bars and taverns:
* 650 jobs
* $21.5 million in labor earnings
* $34.5 million in gross state product
In summary, the enactment of the New York State smoking ban has had a dramatic negative impact on the bar and tavern business and related businesses. The total economic impact is:
* 2650 jobs
* $50 million in worker earnings
* $71.5 million in gross state product (output)
*This analysis, defines bars, taverns and clubs using the following North American Industry Classification System (NAICS) definition: “This industry comprises establishments known as bars, taverns, nightclubs, or drinking places primarily engaged in preparing and serving alcoholic beverages for immediate consumption. These establishments may also provide limited food services.”