Korea Journal of Hospital Management (한국병원경영학회지)

Korean Society of Hospital Management (한국병원경영학회)
권호 표지

Assessment of the Economic Impact of the Non-smoking Area Policy on Restaurant Sales

음식점 매출변화를 통해 살펴본 금연구역 정책의 경제적 영향 분석

  • Noh, Jin Won (Department of Healthcare Management, Eulji University) ;
  • Yoo, Ki Bong (Department of Healthcare Management, Eulji University) ;
  • Lee, Yea Jin (Department of Healthcare Management, Eulji University) ;
  • Yoo, Sol (Department of Environmental Health, Soonchunhyang University) ;
  • Kim, Seong Ryeol (Department of Environmental Health, Soonchunhyang University)
  • 노진원 (을지대학교 의료경영학과) ;
  • 유기봉 (을지대학교 의료경영학과) ;
  • 이예진 (을지대학교 의료경영학과) ;
  • 유솔 (순천향대학교 환경보건학과) ;
  • 김성렬 (순천향대학교 환경보건학과)
  • Received : 2017.05.29
  • Accepted : 2017.10.14
  • Published : 2017.12.29
Download PDF
⟨ Previous Next ⟩

Abstract

Purposes: Despite the positive health effects of both smokers and non-smokers, the non-smoking area policy is being negatively evaluated because of the vague fears of declining restaurant sales. The purpose of this study is to analyze the changes in sales of general restaurants(including liquor stores) and other restaurants that are considered to have the most applications of smoking cessation policy among the smoking facilities, and to examine the economic impact of the designation and expansion policies of non-smoking areas. Methodology: This study used the wholesale and retail trade survey data of the Korea National Statistical Office from 2011 to 2014 and analyzed 31,577 restaurants excluding missing values. For statistical analysis, t-test, ANOVA and Difference-in-differences(DID) models were used and the interaction term of area and year was entered. Findings: As the non-smoking area policy had been designated and expanded from December 2012 to December 31 2013, high restaurant sales in 2012 declined sharply in 2013. However, despite the expanding of the no-smoking area from January 1 2014 through December 31 2014, restaurant sales slightly recovered in 2014. In the case of other restaurants, there is no significant change in sales since the start of the policy in 2013. Practical Implications: The decline in restaurant sales due to the designation and expansion of non-smoking areas is temporary and can not be sustained over the long term. This result can be used to positively suggest negative perceptions of the designation and expansion policy of non-smoking areas. Also, this result can contribute to health promotion and smoking cessation policies by protecting non-smokers from the risk of secondhand smoking exposure and inducing smokers to decrease smoking rate and smoking amount.

Keywords

References

  1. WHO. WHO Framework Convention on Tobacco Control (FCTC) [Internet]. Geneva: World Health Organization; 2003 [cited 2003]. Available from http://www.who.int/fctc/en/.
  2. WHO. Guidelines for implementation of the WHO FCTC [Internet]. Geneva: World Health Organization;2013 [cited 2013]. Available from http://www.who.int/fctc/en/.
  3. WHO. WHO report on the global tobacco epidimic 2013; 2013.
  4. National Health Promotion Act, Law No.11142(Dec 31, 2011)
  5. Punishment of Minor Offenses Act, Law No.13813 (Jan 22, 2016)
  6. Jung Y. How to implement policies on non-smoking zones. Health and Welfare Forum 2009;152:15-21.
  7. U.S. Department of Health and Human Services. The health consequences of involuntary smoking:a report of the surgeon general. Atlanta: U.S. Department of Health and Human Services Report;1986.
  8. Korea Ministry of Health and Welfare, Korea Centers for Disease Control and Prevention. 2014 National Health Statistics; 2015.
  9. Invernizzi G, Ruprecht A, Mazza R, Rossetti E, Sasco A, Nardini S et al. Particulate matter from tobacco versus diesel car exhaust: an educational perspective. Tobacco control 2004;13(3):219-21. https://doi.org/10.1136/tc.2003.005975
  10. Schick SF, Glantz SA. Phillip morris toxicological experiments with fresh sidestream smoke: more toxic than mainstream smoke. Tobacco Control 2005;14(6):396-404. https://doi.org/10.1136/tc.2005.011288
  11. WHO. WHO Report on the Global Tobacco Epidemic [Internet]. Geneva: World Health Organization;2008 [cited 2008]. Available from http://www.who.int/fctc/en/.
  12. U.S. Department of Health and Human Services. The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services Report; 2006.
  13. Fiore MC, Bailey WC, Cohen SJ. Treating Tobacco Use and Dependence. Clinical Practice Guideline, HHS Public Health Service, June 2000. ANR, Economic Impact of Clean Indoor Air Policies, January 15, 2000. Internal Philip Morris document that states that the "financial impact of smoking bans will be tremendous ... Three to five fewer cigarettes per day per smoker will reduce annual manufacturers profits a billion dollars plus per year," July 1, 1993, Bates No. 2025771934/1995.
  14. Korea National Statistical Office, the Wholesale and Retail Trade Survey [Internet]. Daejeon:Statistics Korea; 2015 [cited 2015]. Available from http://kostat.go.kr/survey/saler/index.action
  15. Korea National Statistical Office, the Consumer Price Index [Internet]. Daejeon: Statistics Korea;2016 [cited 2016]. Available from http://www.index.go.kr/potal/main/EachDtlPageDetail.do?idx_cd=1060
  16. Insititute S.A.S. SAS 9.4 for Windows. SAS Institue Inc., Cary, NC, USA 2012.
  17. Stolzenberg L, DʼAlessio SJ. Is nonsmoking dangerous to the health of restaurants? The effect of Californiaʼs indoor smoking ban on restaurant revenues. Evaluation Review 2007;31(1):75-92. https://doi.org/10.1177/0193841X06284814
  18. Glantz SA, Smith LRA. The effect of ordinances requiring smoke-free restaurant on restaurant sales. American Journal of Public Health 1994;84(7):1081-5. https://doi.org/10.2105/AJPH.84.7.1081
  19. Huang P, Tobias S, Kohout S, Harris M, Sattertwhite D, Simpson D et al. Assessment of the impact of a 100 percent smoke-free ordinance on restaurant sales, West Lake Hills, Texas, 1992-1994. Morbidity and Mortality Weekly Report 1995;44(19):370-2.
  20. Glantz SA, Smith LRA. The effect of ordinances requiring smoke-free restaurant and bars on revenues: A followup. American Journal of Public Health 1997;87(10):1687-93. https://doi.org/10.2105/AJPH.87.10.1687
  21. Sciacca JP, Ratliff RI. Prohibiting smoking in restaurants: Effects on restaurant sales. American Journal of Health Promotion 1998;12(3):176-84. https://doi.org/10.4278/0890-1171-12.3.176
  22. Hyland AK, Cummings M, Nauenberg, E. Analysis of taxable sales receipts: Was New York City's smoke-free air act bad for business. Journal of Public Health Management and Practice 1999;5(1):14-21. https://doi.org/10.1097/00124784-199901000-00004
  23. Bartosch WJ, Pope GC. Economic effect of restaurant smoking restrictions on restaurant business in Massachusetts, 1992 to 1998. Tobacco Control 2002;2:38-42.
  24. Melberg HO, Lund KE. Do smoke-free laws affect revenues in pubs and restaurants? The European Journal of Health Economics 2012;13(1):93-9. https://doi.org/10.1007/s10198-010-0287-6
  25. Americans for Nonsmokersʼ Rights. Economic Impact of Smokefree Laws: Case Studies [Internet]. California: American Nonsmokersʼ Rights Foundation;2005 [cited 2005]. Available from http://no-smoke.org/document.php?id=210
  26. California State Board of Equalization: California Department of Health Services. Employment Development Department, Labor Force Statistics [Internet]. California: California State Board of Equalization; 2002 [cited 2003 November]
  27. Dai C, Denslow D, Hyland A, Lotfinia B. The economic impact of Floridaʼs smoke-free workplace law. Florida: Bureau of Economic and Business Research; 2004.
  28. Connolly GN, Carpenter C, Alpert HR, Skeer M, Travers M. Evaluation of the Massachusetts Smoke-Free Workplace Law: a preliminary report [Internet]. Boston: Harvard School of Public Health; 2005 [cited 2005 April 4.] Available from http://www.hsph.harvard.edu/php/pri/tcrtp/Smoke-free_Workplace.pdf.
  29. Thomson G, Wilson N. One year of smokefree bars and restaurants in New Zealand: impacts and responses. BMC Public Health 2006;6(1):64. https://doi.org/10.1186/1471-2458-6-64
  30. Food Journal Editorial Department. Food Distribution Yearbook 2012. Seoul: Food Journal: 2012.