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KMID : 0926620170220040016
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Korean Journal of Hospital Management
2017 Volume.22 No. 4 p.16 ~ p.23
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Assessment of the Economic Impact of the Non-smoking Area Policy on Restaurant Sales
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Noh Jin-Won
Yoo Ki-Bong
Lee Ye-Jin
Yu Sol
Kim Sung-Reol
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Abstract
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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.
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KEYWORD
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Non-smoking Area Policy, Restaurants Sales, Economic Impact, Prevention of Secondhand Smoking
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