When the District’s virtually all-encompassing smoking ban took effect in January, hospitality industry leaders feared the worst: collapsing revenues, lost jobs and shuttered businesses.
But based on the city’s cash collections through June, it appears those fears were unfounded. Alcoholic beverage tax revenues are up slightly, 1.6 percent, for fiscal 2007, while cigarette tax dollars are collapsing, down 19.8 percent in June and 7.5 percent for the year.
So more people are drinking and fewer are smoking, or so it seems.
“This is an indication that things are not as bad as feared by the restaurant and hospitality organizations,” said Leila Abrar, spokeswoman for the D.C. Department of Health. “If you look at other jurisdictions with the law the District has, it shows the same thing.”
The District collected $15.6 million in cigarette tax revenue between Oct. 1, 2006, and June 30, compared with $16.9 million during the same period last year. Abrar said the District soon will launch an advertising campaign to promote its 1-800-QUIT-NOW hotline in hopes “that the trend continues.”
That’s not to say there havebeen no negative effects.
“What we’re hearing is that restaurants/taverns that are more bar-centric are feeling ill effects, but restaurants that are restaurant-centric are not, other than the ancillary consequences like the litter and noise outside,” said Lynne Breaux, executive director of the Restaurant Association of Metropolitan Washington.
Aroma, a cigar bar and tavern in Cleveland Park, is the first District establishment to apply for an economic-hardship waiver under the smoke-free law. Cigar bars are exempt from the ban if at least 10 percent of their revenues come from the sale of tobacco products, and Aroma didn’t make the cut.
Its receipts have crashed since January, co-owner Curt Large said.
“A neighborhood bar like Aroma, it’s always been part of the ambiance,” Large said.
Under the smoke-free law, a hardship waiver is obtainable only if revenues fall at least 15 percent over three consecutive months, compared with the same three months in the previous two years.
