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Page 2 The Economic Impact of the New York State Smoking Ban on New York's Bars L Executive Summary 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 throughoutthe state, as well as a steep decline in bar revenue and significant j ob losses. To date, the only statistical evidence put forth to gauge the ban's economic impact has analyzed the combined revenue and j ob 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 fmdings are tl� the passage of the state smokingban 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: • SSOjobs . $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: • 2650jobs . $50 million in worker earnings .$71.5 million in gross state product (output) 'This analysis, defrnes bars, taverns and clubs using the following Narlh Am� icmz Induslry �imy �a � S�s1em (N.lICS) definition: "This industry comprises establishmen&sknown as bars, taverns, nightclubs, or drinking pktces �� engaged �c preparingand servingalcoholicbeverogesfor immediate consumption.These establishmen&smay aLso provide &mited food services. "