Studies on the Economic Effects of Smoking BansAnti-smoking activists argue that smoking bans are good for business. They claim their studies prove it. This page looks at how they come up with their numbers. We will not analyze any studies, instead we will provide you with the tools to select any study funded by anti-smokers. Fact: All bans are not created equal. Nannies often reference the California ban to "prove" that bans are good for business. According to state tax revenue, California's hotel industry saw a 5% increase in revenue the year after the ban passed. The nannies ignore the fact that the ban was imposed at the height of the most successful economic period in our country's history, when most other states were reporting increases of 10-15% at the same locations. California's ban was very different from restrictions passed more recently. The CA ban exempted owner-operated bars. (Some places made all employees co-owners to take advantage of this exemption. Some small taverns laid off all employees so they could take advantage of the exemption) But the biggest difference between CA and other places where bans killed the business is the climate. California's near-perpetual summer, combined with few restrictions on outdoor smoking, has made it fairly easy for most taverns to provide an outdoor smoking area. In contrast, New York state winters feature freezing winds below zero, and New York law limits outdoor smoking to 25 percent of outdoor seating areas. It even makes it illegal to provide any type of awning, umbrella or cover for smokers. (How mean is this?) In areas where bans are not strictly enforced, compliance with the law can drop as low as 50%. Of course, establishments that don't comply don't suffer from the ban. They might even increase their business, as smokers will frequent their business rather than places that enforce the ban. The issue of compliance is ignored in these studies. Fact: Bans affect some businesses much more than others. Of course, a business that already bans smoking won't be affected by a ban at all. These include delis, bakeries, fast food chains and takeaway places. Takeaways usually benefit from the ban, because they are frequented by smokers who decide to stay at home. Anti-smokers usually include these unaffected activities in their studies. Smoking is less common among the wealthy, so bars and restaurants that cater to an upscale crowd are not as affected as places with a working-class clientele..