THE ECONOMIC IMPACT MYTH.  Smoke-free opponents will claim that the Freedom to Breathe Act has hurt the bar and restaurant business. While it’s too early to document hospitality industry trends in Minnesota since the Freedom to Breathe Act has been in effect, scientific research that uses actual revenue and jobs data from other smoke-free states and communities show these sky-is-falling claims are more fear than fact. The research shows you can have healthy workers and a healthy business, that successful businesses adapt and not only survive but thrive as smoke-free workplaces.

Smoke-free laws do not hurt business. New York City, Massachusetts, El Paso, and Madison, Wisconsin are just a few of the cities and states where research using tax and revenue data from the bar and restaurant show smoke-free laws do not hurt business.

Smoke-Free Ordinances Do Not Hurt Tourism. Studies it such smoke-free tourist destinations as Florida, New York City, and sunny California have found no change in tourist business and even some instances where tourism business has increased after ordinance passage.

Businesses can actually save money by going smoke-free. A 2005 study found secondhand smoke’s direct medical costs and indirect costs, such as lost wages and costs related to disabilities, amount to nearly $10 billion every year. Additional studies show smoke-free related decreases in absenteeism, maintenance costs, lower insurance and health care costs save businesses money on the estimated $1,300 per smoker per year that employers pay one way or another. Smoke-free ordinances in Minnesota have also been shown to have far less of an economic impact than opponents would have you believe. For example . . .

Twin Cities: A Pioneer Press analysis concluded that the hospitality industry continues to grow despite claims that the new laws were hurting bars and restaurants. Fears that a patchwork of regulations would lead customers to seek smoker-friendly bars and restaurants appear to be unfounded. There was no significant decline in food and liquor sales in any of the counties or cities where smoking is restricted.

Hennepin County: Minneapolis experienced a 10.7 percent increase in food sales – up from 5.8 percent in the previous year.

Duluth: Economic data reported by the Duluth City Treasurer indicates that taxes collected on food and alcohol sales have risen steadily since a limited smoke-free policy was implemented in 2000. Similarly, city data on the number of existing establishments serving food and alcohol indicate that the number of smoke-free establishments has grown at a faster rate than the number of establishments that allow smoking.

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