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Thursday, October 19, 2006

Back and forth on the butts

Ontario smoking ban may be a thorn in bar owners’ side.

Owners of entertainment venues in and around the Greater Toronto Area are starting to feel the burn of cigarette butts -- or lack thereof -- as the summer comes to a heartbreaking, inevitable close.

The Ontario smoking ban, issued in May of this year, has put a strain on bar and club owners in particular, who have seen significant revenue differences. And between now and the end of August, there is no doubt these owners will try and get as much as they can out of their biggest cash cows.

Take Lauren Reid, for example. The 22-year-old avid partier is also an avid smoker, and yet the smoking ban hasn’t prevented her from going to her favourite bars and clubs in downtown Toronto. In fact, she is probably the ideal consumer for this type of situation -- one who is willing to take her smoke outside, and not let something like the ban get in the way of a good time.

“I much prefer fresh, clean air in a bar or club,” she said. “If I want to have a cigarette, I just step out onto the patio or back door. That way nobody is bothered by a smoky room.”

But those handling the cash may beg to differ. After all, not everyone is like Reid and would prefer the convenience of having a cigarette whenever and wherever they choose.

This is especially true since the fall season is approaching; temperatures will be dropping, and no longer will the outdoor designated smoking areas be a welcoming place to light up.

The Ontario smoking ban, in conjunction with a similar one issued in Quebec, indicates that smoking is no longer allowed in enclosed spaces, particularly in a restaurant or entertainment environment. This also means patios with rooftops and employee break rooms are banned, according to the Canadian Restaurants and Food Services Association (CRFSA).

Michael Ferrabee, Senior Vice President of Government Affairs with the CRFA, said business owners have taken the greatest hit from the smoking ban, and the ban on patios in particular was an anticipated problem long before the ban was finalized.

“It is important to recognize that restaurant and bar owners have made capital expenditures to build patios that comply with municipal bylaws,”he said. “For many, being able to allow their patrons to smoke on outdoor patios will be critical to their business survival.”

So far, the CRFA reported that bars, pubs, and nightclubs in Ontario have plummeted by 17 per cent between 2001 and 2005. The 2006 results are yet to come out, but officials have said previous decline was mainly due to a one-two punch of fewer customers and rising operation costs.

While this may not directly put the blame on the smoking ban, officials of other entertainment venues are certainly assuming it is the reason behind revenue decline.

Almost immediately following the ban issue in May, the city of Windsor has been struggling to keep its business’ doors open. The Bingo City, as it has been nicknamed, suffered a decline from five to 13 per cent in bingo hall revenue after the ban was finalized. Last year, bingo halls across the city earned over $15 million, supporting over 600 local charities.

And most recently, just last month Casino Windsor laid-off over 300 employees in part due to the smoking ban, according to casino officials.

Holly Ward, Director of Communications at the casino, said the smoking ban was partially to blame, although construction, the U.S. exchange rate, and high gas prices were also factors, the Toronto Star reported.

But some are saying the cutbacks are just investments in better healthy lifestyles.

In fact, Francis Thompson of the Non-Smokers Rights Association said revenue should actually be going up, if not breaking even.

“Keep in mind that daily smokers now account for just 15 per cent of the Canadian population,” she noted. “It would be very surprising indeed if this measure will cause some smokers to stay home, but it is almost certain to increase the willingness of non-smokers to spend times in restaurants and bars.

“Finally, even if there was a negative economic impact from smoke-free policies -- for which there is no empirical evidence -- what's more important: Human lives or the profits of some bar and restaurant owners?”

Restaurant and bar officials are now asking the Ontario legislature to issue permits specifically designed for designated smoking rooms, although there has been some negative responses.

The second level of the ban, currently pending, outlines how convenience store owners should hide tobacco products from the consumer’s view, a proposal that has also sparked continuous debate.

For more information on anti-smoking laws in Ontario, please visit Health Canada at www.health.gov.on.ca

Illustration: Trevor Turner

Source: Scene and Heard.ca (www.sceneandheard.ca), Volume 6 Issue 4

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