South-East European Research Centre (SEERC)

Background: As of January 1^st, 2010 Cyprus introduced a new law to ban smoking in public settings, and this may directly impact the financial revenues of the hospitality and tourism industry, namely hotel, bar/club, and restaurant revenues. On the other hand, the smoke-free law will significantly improve the quality of services offered to local customers and tourists, by protecting their right for smoke-free air; thus, making the country’s hospitality and tourism industry more competitive, and bringing it closer to international standards. These two possibilities of the smoking ban raise questions on whether the upcoming law will actually hurt or benefit the local hospitality and tourism business.

Objectives: The proposed project aims to provide scientific evidence to resolve this question by examining the empirical evidence on the actual and perceived financial impact of total smoking bans in the hospitality and tourism industry in Cyprus.

The econometric analysis is expected to indicate whether the implementation of the smoking ban will have an actual significant impact on revenues of restaurants, bars/clubs, and hotels in Cyprus. The survey study will also describe the beliefs and perceived financial costs of hospitality/tourism professionals, and identify predictors of support for the ban.

Anticipated benefit: The findings of the proposed project are expected to generate important knowledge and help policy makers identify foreseeable financial risks and benefits of important public health decisions on the Cypriot economy. It will also help in promoting the realistic and positive economic effects of smoking bans among professionals and stakeholders involved with the hospitality and tourism industry in the country.