International Hotel & Restaurant Association
The Tobacco Products Control Amendment Bill
The International Hotel & Restaurant Association
Chris Cox, Euro Center Communications Group
20th October 1998

Introduction
1. These submissions regarding the Tobacco Products Control Amendment Bill, 1998 ("the Bill") are made by a representative of the International Hotel & Restaurant Association (IH&RA).
2. These submissions constitute an expert opinion on Section 2 of Act 83 of 1993 relating to smoking in public places.
3. The basis for the submission is derived from running the Courtesy of Choice programme in 49 countries worldwide.
4. Courtesy of Choice is the official International Hotel & Restaurant Association programme to accommodate smokers and non-smokers in harmony and as such this submissions deals with public places only in so far as they include segments of the hospitality industry.

Balancing public health concerns with the needs of the Hospitality Industry
When considering the issue of smoking in public places Governments are faced with the challenge of striking a delicate balance between on the one hand the interests of public health and on the other hand the ongoing survival of the entire hospitality industry. Analysis of almost 200 countries shows, that despite widespread calls for smoking restrictions, in fact only a few have legislation prohibiting or severely restricting smoking in hospitality venues. Governments and local authorities are clearly recognizing the significant negative effect that total smoking bans in hospitality venues can have, with knock-on effect on employment.

A lot can be gained from the successes and mistakes that have been experienced in other countries and we would like to assist in the decision-making process by sharing some of our experiences with you.

Negative economic impact of total smoking ban
A study conducted in New York alter the 1995 ban shows that smokers reacted negatively to the ban, 37% reporting that they dined out less often and that they spent 40% less time in restaurants.
In addition to this, NY restaurant owners registered an average decrease of4l% in sales receipts and losses of2 775-restaurant jobs were registered, running counter to a citywide lilt in the economy at the time.
A review of 600 California restaurants reported that 48.2% registered reduced sales alter implementing the smoking ban.
A Price Waterholes study estimated there was a loss of $3.925 billion in sales and of 62 000 jobs as a result of the smoking ban.
$525 million was estimated to have been lost in federal state local taxes as a result of smoking bans.
A national survey by the US National Restaurant Association showed that the food service industry would lose $18.2 billion in sales nation-wide should a smoking ban be implemented.
In Canada, the immediate losses to the hospitality industry in metropolitan Toronto when the City Council bought in a ban were so severe that within four week the council had rescinded the ban.
A Restaurant Association of Great Britain survey showed that a smoking ban would cost the industry GBP346 million in lost revenue and 45,000 jobs. The UK Ministry of Health has accepted that a voluntary system would be much easier for all concerned.

Conference and Incentive.
International tourism has also suffered from bans in certain markets.
During the first few months that the ban was imposed in Los Angeles, the city lost $20 million worth of conference and incentive business and $900,000 worth of income.
A subsequent survey conducted by International Meetings and Planners of the USA with 2,405 professional planners indicated that 94% thought it was important to accommodate the preferences of smokers and non-smokers in hotels, restaurants and conference facilities. 85% wanted information on the facilities that accommodated smokers and non-smokers.

The hospitality Industry's Perspective - Meeting the needs of their customers
As one of the largest service sectors in the world, the hospitality industry has a vital interest in meeting the needs of its patrons.

It makes economic sense for the hospitality industry to satisfy the needs of their customers - in this way they can optimize on profits. Therefore the hospitality industry is best qualified to provide the solutions that will allow smoking and non-smoking patrons to happily enjoy the widest range of venues together.

An Alternative to Total Smoking Ban
The hospitality industry worldwide recommends self-regulation on the issue of smoking in their outlets. It is flexible, and is more responsive to the demands of customers. It also allows for both proprietors and customers have their input and works more effectively because it operates at the individual venue level. Most importantly it is more popular and is hence a more acceptable approach to the issue since it takes into consideration and is tolerant of both smokers and non-smokers.

Self-regulation - The IH&RA Courtesy of Choice programme
The International Hotel and Restaurant Association is the official mouthpiece for the hospitality industry worldwide. It operates in 155 countries and represents 700,000 establishments. In order to address the very problems that the South African hospitality industry is faced with today, they implemented the Courtesy of Choice programme in 1994.

In that year, the IH&RA undertook a research survey in 51 countries that demonstrated that:
90% of the hospitality industry worldwide felt that smokers and non-smokers are important to their business.
80% of the managers surveyed thought that the hospitality industry and their guests should make smoking policy decisions.
89% thought that it was important to accommodated the preferences of both smokers and non-smokers. As a result of this survey the IH&ILA launched the now world renowned Courtesy of Choice programme.

The programme is currently running in 49 countries in Europe, including Eastern European countries, North and South America, Middle and Far East and Asia. It has become the most successful programme ever undertaken by the hospitality industry. The prime reason for its success has been that it has proven to be an effective solution to the problem of smoking or non-smoking for the hospitality industry, the consumer and for the legislative bodies. Its success is also due to the fact that it is based on three principles customer information, effective ventilation and in-depth staff training.

Ventilation
The presence of perceptible levels of tobacco smoke is usually a symptom rather than a cause of indoor air quality problems. Proper filtration and room ventilation will reduce the concentration of ETS and other substances present in the air like chemicals and particles emitted during cleaning and cooking. Those proposing an outright smoking ban should be aware that proper ventilation, common sense and courtesy can overcome these problems. Thus the Courtesy of Choice programme advocates:
Sensible and flexible seating arrangements that provide for smokers to be located where the natural air flow is from non-smoking to smoking areas, eliminating any potential annoyance to non-smokers.
Adequate ventilation using the ventilation system properly and encouraging correct maintenance.
Complete ventilation checks by specialized engineers in each country where the programme is being run.

Training programmes
The Courtesy of Choice programme has implemented a number of comprehensive staff training schemes. These are tailored to small and large establishments using videos, overheads, brochures, as well as situations for role-playing, thus demonstrating to hotel and restaurant staff how to deal diplomatically with difficult situations that may arise, in relation to the smoking and non-smoking preferences of their customers.

Process of controls and audits and customer information
A process of controls and audits has been put in place in each country where the programme is run, to ensure that the programme is carried out efficiently, coupled with a customer and industry information campaign explaining how Courtesy of Choice works. The Association also offers a web-site to both consumers and travel agents indicating the countries, towns and establishments that are taking part in the programme.

Courtesy of Choice as a mediator between Government and Hospitality
As a result of the effectiveness of the programme a number of countries that were envisaging imposing bans in hospitality venues have revised their thinking.

Ireland
In 1995 the Irish Health Minister proposed that 66% of restaurants seating be legally allocated for non-smoking. It was only when the Irish Hotel and Restaurant Associations presented Courtesy of Choice that the Minister agreed to revise this quota down to 25%, provided that 'adequate ventilation could be demonstrated'. Restaurants and hotels in Ireland now have to present a local authority ventilation certificate to be allowed to qualify for the 25%.

United Kingdom
In the United Kingdom the Government is currently writing a White Paper on smoking in public places. The hospitality industry has put forward as part of its submissions 2 voluntary programmes, one of which is Courtesy of Choice. The Chief Civil Servant drafting the White Paper has studied the programme and in particular the ventilation and staff videos, with which he was most impressed.

Spain
Success of the programme has lead to a voluntary general agreement of collaboration between the Health Council of the city of Madrid and the Madrilenian Association of Restaurant and Cafeteria Managers. The Health Council is working with the Association on creating appropriate non-smoking areas and on improving existing ventilation while not harming the economical and commercial interest of any establishment.

Slovakia
In Slovakia Courtesy of Choice has worked with the Government on an agreed 50% nonsmoking area decision and in July 1997 the programme was recognized by the Slovak Trade Inspectorate and the Slovak AGRI Inspectorate as an alternative solution to the legal requirements. The programme, with its requirements for good ventilation and clear marking of designated areas, fits in with the Government's restrictions.

France
In France the programme has been launched to fit in with the French Government's desire to strengthen compliance with the Loi Evin, which already specifies the requirements for smoking and non-smoking areas clearly identified.

Zimbabwe
The most recently success of the programme is in Zimbabwe where the programme has been fully implemented, thus eliminating the need for legislation in the hospitality industry. The official launch will take place at the end of November and will be attended by the ministers of both Tourism and Health.

Conclusion
A recent survey in Cape Town (commissioned by FEDUASA) show that on average restaurant owners' estimate the ban would reduce their monthly turnover by 32%. This would in turn lead to a 16% reduction in the numbers of employees. 88% of the restaurant owners interviewed said that they felt that the proprietor should make the decision on the smoking policy. We at Courtesy of Choice agree.

We hope that this submission serves to demonstrate that there is more than one solution to the issue of smoking in hospitality arena. We have endeavored to highlight the principles, methodology and successes of self-regulation through the Courtesy of Choice programme, thereby offering a constructive and reasonable alternative to restrictive legislation.

COURTESY OF CHOICE PROGRAMME - AN ALTERNATIVE TO RESTRICTIVE LEGISLATION

Balancing public health concerns with the needs of the Hospitality Industry
When considering the issue of smoking in public places Governments are faced with the challenge of striking a delicate balance between on the one hand the interests of public health and on the other hand the ongoing survival of the entire hospitality industry. Analysis of almost 200 countries shows, that despite widespread calls for smoking restrictions, in fact only a few have legislation prohibiting or severely restricting smoking in hospitality venues. Governments and local authorities are clearly recognizing the significant negative effect that total smoking bans in hospitality venues can have, with knock-on effect on employment.

A study conducted in New York alter the 1995 ban shows that smokers reacted negatively to the ban, 37% reporting that they dined out less often and that they spent 40% less time in restaurants.
In addition to this, NY restaurant owners registered an average decrease of 41% in sales receipts and losses of 2 775-restaurant jobs were registered, running counter to a citywide lilt in the economy at the time.
A review of 600 California restaurants reported that 48.2% registered reduced sales alter implementing the smoking ban.
A Price Waterhouse study estimated there was a loss of $3.925 billion in sales and of 62 000 jobs as a result of the smoking ban.
$525 million was estimated to have been lost in federal state local taxes as a result of smoking bans.
A national survey by the US National Restaurant Association showed that the food service industry would lose $18.2 billion in sales nation-wide should a smoking ban be implemented.
In Canada, the immediate losses to the hospitality industry in metropolitan Toronto when the City Council bought in a ban were so severe that within four week the council had rescinded the ban.
A Restaurant Association of Great Britain survey showed that a smoking ban would cost the industry GBP346 million in lost revenue and 45,000 jobs. The UK Ministry of Health has accepted that a voluntary system would be much easier for all concerned.

International tourism has also suffered from bans in certain markets.
During the first few months that the ban was imposed in Los Angeles, the city lost $20 million worth of conference and incentive business and $900,000 worth of income.

The Hospitality Industry's Perspective - Meeting the needs of their customers
As one of the largest service sectors in the world, the hospitality industry has a vital interest in meeting the needs of its patrons.

It makes economic sense for the hospitality industry to satisfy the needs of their customers - in this way they can optimize on profits. Therefore the hospitality industry is best qualified to provide the solutions that will allow smoking and non-smoking patrons to happily enjoy the widest range of venues together.

The hospitality industry worldwide recommends self-regulation on the issue of smoking in their outlets. It is flexible, and is more responsive to the demands of customers. It also allows for both proprietors and customers have their input and works more effectively because it operates at the individual venue level. Most importantly it is more popular and is hence a more acceptable approach to the issue since it takes into consideration and is tolerant of both smokers and non-smokers.

The IH&RA Courtesy of Choice programme
The International Hotel and Restaurant Association is the official mouthpiece for the hospitality industry worldwide. It operates in 155 countries and represents 700,000 establishments. In order to address the very problems that the South African hospitality industry is faced with today, they implemented the Courtesy of Choice programme in
1994.

The programme is currently running in 49 countries in Europe, including Eastern European countries, North and South America, Middle and Far East and Asia. It has become the most successful programme ever undertaken by the hospitality industry The prime reason for its success has been that it has proven to be an effective solution to the problem of smoking or non-smoking for the hospitality industry, the consumer and for the legislative bodies. Its success is also due to the fact that it is based on three principles - customer information, effective ventilation and in-depth staff training.

Those proposing an outright smoking ban should be aware that proper ventilation, common sense and courtesy can overcome these problems. Thus the Courtesy of Choice programme advocates:
Sensible and flexible seating arrangements that provide for smokers to be located where the natural air flow is from non-smoking to smoking areas, eliminating any potential annoyance to non-smokers.
Adequate ventilation using the ventilation system properly and encouraging correct maintenance.
Complete ventilation checks by specialized engineers in each country where the programme is being run.

The Courtesy of Choice programme has also implemented a number of comprehensive staff training schemes. These are tailored to small and large establishments using videos, overheads, brochures, as well as situations for role-playing, thus demonstrating to hotel and restaurant staff how to deal diplomatically with difficult situations that may arise, in relation to the smoking and non-smoking preferences of their customers.

A process of controls and audits has been put in place in each country where the programme is run, to ensure that the programme is carried out efficiently, coupled with a customer and industry information campaign explaining how Courtesy of Choice works. The Association also offers a web-site to both consumers and travel agents indicating the countries, towns and establishments that are taking part in the programme.

As a result of the effectiveness of the programme a number of countries that were envisaging imposing bans in hospitality venues have revised their thinking.

A recent survey in Cape Town (commissioned by FEDHASA) show that on average restaurant owners' estimate the ban would reduce their monthly turnover by 32%. This would in turn lead to a 16% reduction in the numbers of employees. 88% of the restaurant owners interviewed said that they felt that the proprietor should make the decision on the smoking policy.

The IH&RA submission serves to demonstrate that there is more than one solution to the issue of smoking in hospitality arena. It highlights the principles, methodology and successes of self-regulation through the Courtesy of Choice programme, thereby offering a constructive and reasonable alternative to restrictive legislation.

Copyright Euro Center Communications 20th October 1998
Contact: Luci Buckland tel. (021) 424 2242