Pubs 'hit hard' by smoking ban

10th December 2005

One year ago today a new law came in banning smoking in bars and restaurants. EMMA BUTT asks pub owners

how they've coped.

Local bars are rubbishing statistics suggesting their revenue has not been affected by the one-year-old smoking ban.

A survey released by the Asthma and Respiratory Association had found, while there had been an initial downturn, bar retail sales were now on the rise.

However, president of the Bay of Plenty branch of the Hospitality Association, Reg Hennessy, said the survey was "absolute rubbish".

He said while larger city bars might not have been affected, the traditional Kiwi pubs patronised by "blue collar" drinkers had been hit hard.

"I know of bars that are down by as much as 50 per cent," he said.

"I would suggest there has been at least 20 per cent across the board."

Mr Hennessy said with all the other legislation that was targeting the hospitality industry, such as the Holidays Act, many suburban and rural pubs may be forced to close.

"It will change the New Zealand pub as we know it," he said.

O'Malley's Irish Bar in Rotorua has also been feeling the effects of the legislation.

Owner Terry Meagher said the bar's revenue had been down by about 20 per cent and many other bar owners were experiencing the same thing.

He said O'Malley's had been closing earlier during the weeknights because people were simply choosing to go home rather than stand outside and smoke - especially in the winter.

"We even bought a big heater but it hasn't made a difference."

The publican said although the bar was now a nicer place to work most of his bar staff didn't care as they were smokers.

He said he still couldn't get over the irony of being able to sell cigarettes inside a bar to customers who weren't allowed to smoke.

Rotorua clubs have also noticed a downturn in revenue and met with local MP Steve Chadwick on Monday to discuss their loss of profit since the smoking ban was put in place.

Some clubs claim to have lost about $150,000.

However, the Asthma and Respiratory Foundation study paints a more positive picture.

The survey found retail figures for bars, clubs, cafes and restaurant remained strong and there had been an increase in non-smokers visiting bars.

It also stated an increase in employment in bars and taverns and a decrease in socially-cued smoking.

Only two pubs spoken to by the Daily Post agreed with the survey's findings.

Duty manager Jess Smith at Finn Maccuhal's Irish Pub in Taupo said the bar had been busier since the legislation was brought in.

She put it down to the large outside deck they had.

"It has worked really well," said .

She said smokers and non-smokers alike enjoyed the deck where they were able to drink and smoke.

Management at the Red Rock in Whakatane also agreed with the findings.

Day manager Jo Olsen said the smoking ban hadn't really affected the bar and believed the situation was now better.

She said all that was needed now was ashtrays outside to stop people throwing cigarette butts on the footpath.

Mrs Chadwick, who sponsored the law, said the survey's findings were fantastic news.

"I'm so excited to see this important health legislation working so successfully."

While some bars and clubs had been noticing a downturn in revenue, Mrs Chadwick believes things would even out over the years and called this year a "hump year".

"I think you will find it different all across the country," she said.

"The doomsayers' predictions haven't been realised and internationally more and more countries are adopting similar positions on smoking."