New no smoking law will hit profits - 12.08.2005

Owners of bars and restaurants estimate that around 1,600 million euros will be lost when the new no smoking laws that are presently going through parliament come into force.

Jose Maria Rubio, President of the Spanish Federation of Hoteliers FEHR, which takes in 300,000 companies generating 1.7 million jobs, indicated that a study carried out on the possible effects of the law which will enforce restrictions on the consumption of tobacco in restaurants, bars and discotheques showed that over 60,000 establishments will be affected causing an 8% loss of customers - 1,600 million euros in economic terms leading to the loss of 20,000 jobs.

Although Rubio emphasized that the sector is in favour of healthy habits, is against tobacco addiction and supports the new law, it is not in favour if the way the law will be enforced and requests that the government be more flexible in its plans allowing a longer time for the measures to be applied.

Dionisio Lara, president of Businessmen for Quality Leisure Time, added that it will be very difficult for society to isolate the 11 million smokers adding that it was unfair of the law to require the owners of the premises to act as policemen. He explained that the 10,000 euros fine to the owner of the bar or restaurant if anyone is found smoking on the premises will oblige them to enforce the law with a rod of iron, meaning that they will very probably lose customers or pay the consequences at a very high price.