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 Smoking ban affects local hotel profits 

Smoking ban affects local hotel profits

16 May, 2008 11:23 AM
Port Augusta hotels have still not recovered losses from the state’s smoking ban six months ago.

Pubs and clubs have now been smoke free for six months, as of last Thursday.

On the six-month anniversary of the state's new smoking laws, it seems the laws have been well accepted by the community.

The Tobacco Control Research and Evaluation Program based at the Cancer Council of South Australia conducted a survey of around 2000 South Australians.

They found that of those survey last year, 86.4 per cent supported smoke free bars and 87.6 per cent supported smoke free gaming rooms.

But Australian Hotels Association regional representative, Mark Davies, said that full smoking bans have definitely affected hotel business.

"It's slowly picking up but nowhere near where it was,"

"(There is) still a down-turn and picking up but picking up slowly."

Mr Davies said other factors also contributed to the decline in business.

"Economic times, things are pretty tight,"

"(There are) travellers, people in town who spend money (but) as far as local trade we're definitely down."

"I really don't think it will pick up to where it was."

He also confirmed what many people predicted: that pokie revenue would suffer.

He said Ian's Western Hotel was "definitely down in gaming" although stressed that other factors such as economic times could again have played a part.

"On-premise sales are down as well,"

"People aren't staying as long in venues, because they don't feel comfortable if there is no outdoor area."

When asked about beer gardens Davis described them as a "necessity".

He said most hotels had put in beer gardens, some with success and some without.

"We find beer gardens are working well in warmer summer months, while in winter they're not working so well."

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RIGHT:EMPTY BAR: Australian Hotels Association regional representative Mark Davies  says local pubs have not yet recovered from a downturn in sales from the state’s smoking ban.
RIGHT:EMPTY BAR: Australian Hotels Association regional representative Mark Davies says local pubs have not yet recovered from a downturn in sales from the state’s smoking ban.

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