How Smoking Restriction Effect the Club in Sydney - Research Paper Example

Running head: A RESEARCH PROJECT ON HOW SMOKING RESTRICTION HAS AFFECTED CLUBS IN SYDNEY How Smoking Restriction Effect the Club in Sydney (Your Name) (University) Executive Summary Recently, the city of Sydney has experienced one of the major advances in the enforcement of the tobacco control policy that was recently drafted by the government. The policy that restricts smoking in public places will see most of the bars; clubs, hotels and other areas experience some adverse effects. The report below outlines a study that was conducted in the city’s clubs. A questionnaire was drafted to enable the researcher collect as much information as possible from the bar managers and bar owners. Other relevant information was also collected from government officials, club staff and customers so that an overview on how the smoking restriction will affect clubs in Sydney. The major findings that were found are; there was evidence of sales and revenue drop in most of the clubs. The health of club staff had also improved greatly based on evidence from the staff themselves and the managers. The number of customers who visited the clubs after the implementation of the smoking restriction ban had reduced and consequently huge investment losses reported. There were also other concerns that resulted in disturbances increase in dashes and dine in and out of the clubs by many customers. Acknowledgement I acknowledge the invaluable help from my lecturer and my colleagues with whom this research project would not have been a success. I would also like to appreciate those people who helped me get the necessary information for this research including club managers and owners within the city of Sydney. Table of Contents List of Tables and Figures 5 CHAPTER ONE: INTRODUCTION 6 1.0 Introduction to the study 6 1.1 Aims 6 1.2 Research objectives 7 1.3 Definition of terms 8 1.4 Research questions 8 CHAPTER TWO: LITERATURE REVIEW 8 2.0 The smoking restriction policy in Australia 8 2.1 Enforcement 9 2.2 Smoking prevalence 10 2.3 Definition of a ‘public place’ 10 2.4 Overview of the smoking restriction policy 11 2.5 Fines and other penalties 11 2.6 Possible effects of the smoking restriction 11 2.6.1 Sales and revenues 11 2.6.2 Employment 12 2.6.3 Investment losses 12 2.6.4 Personal freedom 12 2.6.5 Increase in dine and dashes 13 2.6.6 Employee concerns 13 CHAPTER THREE: METHODOLOGY 14 3.0 Research design 14 3.1 Methods of data collection 14 CHAPTER FOUR: DISCUSSION 15 4.0 Results 15 4.1 Analysis 18 CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 19 5.0 Recommendations 19 5.1 Conclusion 20 6.0 References 21 7.0 APPENDICES 22 List of Tables and Figures Figure 1. ………………………………………………………………..9 Table 1. …………………………………………………….………….13 Table 2. …………………………………………………………….….14 Table 3. …………………………………………………………….….14 Table 4. ………………………………………………………………...15 Table 5. ……………………………………………………….…..……16 CHAPTER ONE: INTRODUCTION 1.0 Introduction to the study The main resistance of the smoking restriction comes directly from business owners and businesses themselves. Most of these people believe that they will suffer financial losses in the long run especially given the fact that most of the drinkers are also smokers and allowing a small group of them will mean huge losses in businesses. In Sydney clubs and pubs are continuing to put a new spin on widespread smoking restrictions in the city. Most of these places are facing the prospect of massive financial losses as the smoking ban take effect immediately. The habit of smoking in the clubs within the city has been going on for a long period of time as the patrons enjoy puffing inside the club. 1.1 Aims The main aim of this research project is to identify the extent and nature of how smoking restriction affect the club in Sydney. In other words it tries to examine the positive and the negative implications that can occur in terms of revenues, business performance, employee health and other issues that can arise as a result of the implementation of the smoking restriction policy. It will also try to simulate the effects of the proposed smoking restrictions in clubs in Sydney and the implications of the same on the entertainment portfolio and the Australian hospitality industry at large. The policy implications on the implementation of the policy will be examined. This will specifically centre on the consumption and service provision at the clubs. Smoking as we all know affects both smokers and smokers alike. Anti-smokers argue that the health effects associated with smoking are so grave that the smoking ban is justified. On the other hand, the businesses in a city such as Sydney feel that the smoking restriction will drive them out of business. To balance the two issues of giving the non-smokers their right to breathe air and also allowing the smokers to exercise their freedom to choose what they do for their entertainment is the problem (Boyle P, Autier P, & Bartelink H. 2003) 1.2 Research objectives The main objective of this project is to examine how smoking restrictions has impacted on clubs in Sydney whether positively or negatively. The main objectives of the research will be i. To examine the specific effects of smoking restrictions in the clubs in Sydney such as revenues, employee concerns, number of customers and security (movements in and out of the club by patrons) ii. To identify the general effects of smoking in the club and if it really matters to the business iii. To examine the health related implications of the policy on club staff and if it will be effective in achieving what it was intended to do iv. To identify the proposals that would be recommended to the Australian government in order to save this sector the economic industry 1.3 Definition of terms Qualitative - Comparisons based on the qualities of the persons used in a particular study which relate or involve certain personal characteristics Quantitative –Research analyses based on a combination of more than one effect will include the volumetric capacity of the information at hand. Cognitive-this is the intellectual ability of a person to distinguish bad or good with specific reference to what he or she has been told 1.4 Research questions Based on previous studies including those done by Philip Morris, the research questions for this study will be; 1. What are the effects of the smoking in terms of revenues, employment, health of club staff, attendance or behavior of patrons? 2. What are the behaviors of customers of clubs in Sydney after the implementation of the smoking restriction? 3. what could be the long term implications of the restriction on businesses and the Australian hospitality industry at large CHAPTER TWO: LITERATURE REVIEW 2.0 The smoking restriction policy in Australia The ban on smoking took effect on July1 in Sydney, and it is the timing of the ban that most smokers and club managers are suspicious about. The season was at the height of winter and the weather was against many people. Most of the club owners have been able to run advertisements to entice drinkers to new ‘smoking zones’ in order to keep their businesses running. The new smoking areas which have been built at a total cost of more than $ 340 million and that the implementation f the smoking restriction policy has become a problem to the clubs in Sydney A recent study has indicated that Sydney’s clubs have prospered in some way after they have implemented the smoking restriction rules. This was noticed especially in those clubs that offer food and accommodation. There was an increase in the number of customers who felt that the club’s environment was now healthier and safe to operate in. The study also found out that air pollution levels within the clubs have decreased six fold in just three months since the time they affected the smoking ban (Schick, 2005). The right of the owner to accept what should happen within his or her premises is very important. It is to the conscious decision of the owner of the club to decide to warn non smokers not to enter his premises but only allow smokers to puff freely (Boyle, Autier & Bartelink, 2003). This is a contentious issue which has generated debate in the whole country and that smoking in ones home is much saver than smoking in public where people are required to attend without the option of avoiding it. Previous studies have shown that there are significant improvements of club employees and staff months after the ban in many places which have enacted the ban. The research indicates that there reduced effects on inflammatory markers and lung functions of bar workers. 2.1 Enforcement There has been a sense of misunderstanding on how the smoking restriction will be effected between the management of the clubs and the police or the councils. The police feel that it is possible to have the management of the clubs conduct the enforcement themselves because they are there all the time (Schick S, 2005). This will however be impossible because of the fact that the clubs would not chase away their customer-it is suicidal to business! Another thing that would make enforcement impossible is the fact that the club may be a private one and therefore it has its own rules and policies for its members. Such an environment would be difficult to implement the proposal. 2.2 Smoking prevalence The prevalence of smoking rates in the country has been shocking. In fact, the World Health Organization has rated Australia as one of the countries with high number of smokers. To make it worse, the country is not implementing the smoking restriction policy faster which in real sense is making the whole thing slow. Figure 1. The number of smokers by age and sex as reported in Australia through a survey conducted in 1999. Source; Schick S, (2005). "Philip Morris study on the effects of smoking ban in the hospitality industry. Tob Control. 10 (5); 239 2.3 Definition of a ‘public place’ The term ‘public place’ has been a source of contention in the implementation of the smoking restriction in Australia. The streets could be a public place while the club could be a private place. This could mean that it more consultation; discussion and research must be done in order to clearly define it. At the moment the policy indicates that it is any place where all members of the public gather whether under any obligation or for leisure 2.4 Overview of the smoking restriction policy In general, the smoking restriction policy in Australia is concerned with the smoking in public places which include; hotels, bars and restaurants, clubs, institutions, etc. The smoking restriction policy makes it an offence to; a. Smoke in places designated ‘ no smoking’ or ‘public places’ b. Permit others to smoke in the ‘no smoking premises’ c. To fail to display warning notices in public places d. Empowers officers to arrest offenders (Smoke free legislation consultation response, 2005) 2.5 Fines and other penalties The Australian smoking restriction policy allows for collection of fines from offenders. This has however been used in most clubs as a loophole in extracting more money from customers who are then allowed to smoke freely in the clubs and the management makes sure that it pays the fine to the enforcing authorities. This scenario does not match with the spirit of the policy which aims at preventing second-hand smoke. 2.6 Possible effects of the smoking restriction 2.6.1 Sales and revenues Smoking restriction greatly affects the amount of revenues and sales in the clubs in Sydney. Most smokers are also alcoholic and will want to be in the club and smoke right inside the club. In most cases, beer and wines go hand in hand with smoking and that is why most smokers flock into night clubs and restaurants to take both-wines, beers and cigarettes. The smoking ban therefore affects this trend and most smokers will keep off the clubs in the area. This will mean that the majority of the people coming into the club are non smokers while smokers will look for other ‘conducive’ areas to smoke. The revenues and sales for the clubs will therefore come down tremendously as a result of the ban. Official results indicate that revenue growth in most clubs within the city has fallen by an average of 1.3% this fiscal year as the impact of smoking restrictions takes effect immediately. Since the new law bans people from smoking while drinking, it leads to customers drinking less (Schick, 2005). 2.6.2 Employment As a result of less revenue, the number of club staff who may be sacked will increase as there will be no money to employ them or keep them working. This will mean that a number of attendants, managers, DJs, etc. will be looking for greener pastures elsewhere. Employees in most clubs are losing their jobs and consequently their incomes which could have been used for other purposes such as health and education. 2.6.3 Investment losses The clubs in Sydney and other part of the city has cost investors huge sums of money and that the smoking restrictions will greatly affect the businesses. As a matter of business relations, the investors will be demoralized and might seek to close down their businesses and shift elsewhere (Smoke free legislation consultation response, 2005). 2.6.4 Personal freedom Smoking restriction in the clubs will indicate that there is some kind of interference on personal freedom. The human rights act gives the freedom of consumption of cigarettes. One of the common arguments that smokers and club owners have is that restriction of smoking violates the rights of the individual. Although most people concur that smoking affects ones health, when an adult smokes, it is a personal lifestyle by choice and it should be without victimization. “A group in the country, calling themselves "Freedom to choose", have launched a campaign for a judicial review of the smoking ban. They claim that the law is in breach of the Human Rights Act 1998, as it does not respect the right to privacy of people who wish to smoke in pubs and social clubs” (WHO Framework Convention on Tobacco Control, 2007). The main contradiction that non-smokers put at this note is that there is a right for them to breathe fresh air. 2.6.5 Increase in dine and dashes Since the smoking ban will be effected inside the club, the rate at which the customers will be moving out and coming into the club will be high in the pretext that, ‘I need to take a puff outside’. This results in many inconveniences to the management of the club especially when it comes to ensuring that there is appropriate security. That movement up and down the club will also result in damages of equipment, misunderstandings, etc. 2.6.6 Employee concerns If the employees in the clubs are also smokers, services will be frequently interrupted as far as the policy holds. This will in the long run result in poor performance from the employees and consequently economic consequences for the business. In that case, employees will need to have specified break times that will not affect the operations of the club. When it is peak hours of the business and the employees want to take the puff, then it will be a problem for the club (Straif, 2005). CHAPTER THREE: METHODOLOGY 3.0 Research design This quantitative study will require the researcher to show how the smoking restriction will affect the Sydney club in terms of revenues, patron attendance, club staff and penalties that are imposed on defaulters of the new policy. The research will involve the interview of ten club managers within the city of Sydney and their responses recorded in tables as shown later in this report 3.1 Methods of data collection A four point Licker-scale model will be utilized to measure the extent to which the smoking restriction will have implications on Sydney clubs. It will also measure whether the clubs feel affected by the smoking restriction and if it will really have economic, social and cultural impact on the clubs. The respondents will respond by ticking the following four categories, either: 1) strongly agree ____2) Agree ____3) Disagree ____ or 4) Strongly Disagree ____ This instrument will be distributed to a private clubs within Sydney so that the mangers can respond to the questions cited in the questionnaire. . The scenarios that will be observed by the researcher will include the reactions of club owners in the city and if there is a real difference between the clubs in terms of the smoke restriction effects. All the participants will be required to sign a confidential agreement that is provided in the consent form and agree with the terms stated there. This is done with a view to alleviate any form of propensity that might arise among the participants CHAPTER FOUR: DISCUSSION 4.0 Results Table 1 was used to assess how the smoking restriction affects the revenues of the Sydney clubs Table1. Since the time smoking restriction was implemented, my revenues have reduced The preceding are the results of the data collected regarding the response from club owners that from the time the smoking restriction policy was implemented, revenues had dropped steadily. Those who Strongly Agreed with the question were 60% while those who Agreed were 30% and a further 10% Disagreed. None of the club managers Strongly Disagreed. Table 2 was used to assess how the smoking restriction affects the frequent attendance of patrons in the club Table1. Since the time smoking restriction was implemented the number of customers has reduced The preceding are the results of the data collected regarding the response from club owners that from the time the smoking restriction policy was implemented, the number of customers have reduced. Those who Strongly Agreed with the question were 70% while those who Agreed were 20% and a further 10% Disagreed. None of the club managers Strongly Disagreed. Table 3 was used to assess how the smoking affects the movement of patrons in the clubs in terms of dines and dashes Table3. Since the time smoking restriction was implemented, customers move in and out frequently The preceding are the results of the data collected regarding the response from club owners that from the time the smoking restriction policy was implemented, there is increased dines and dashes from the customers. Those who Strongly Agreed with the question were 90% while those who Agreed were 10%. None of the club managers Strongly Disagreed or Disagreed with the statement Table 4 was used to assess how the smoking restriction affects investments Table4. Since the time smoking restriction was implemented many people have changed cause to other businesses leading to investment losses The preceding are the results of the data collected regarding the response from club owners that from the time the smoking restriction policy was implemented, investments in the sector have reduced. Those who Strongly Agreed with the question were 80% while those who Agreed were 10% and a further 10% Disagreed. None of the club managers Strongly Disagreed. Table 5 was used to assess how the smoking restriction affects the health of club staff Table5. Since the time smoking restriction was implemented, the heath of my staff have improved The preceding are the results of the data collected regarding the response from club owners that from the time the smoking restriction policy was implemented, the health of the club staff have improved. . Those who Strongly Agreed with the question were 100% of all the respondents Strongly Agreed. 4.1 Analysis From the above results, it can noticed that the number of clubs that have reported low revenues were 60%. Some however, felt that since smoking had been prohibited within the club, non-smokers were increasing in number and that revenues were slightly up. In other cases, the number of club managers who felt that their employees had improved health-wise was 100%. CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 5.0 Recommendations One of the major rationales cited for the introduction of smoking restrictions is the protection of employees and staff in the public areas such as night clubs, bars and restaurants. The particular reason that come inline with the smoking restriction is the harmful effects of second-hand smoke. These effects include; lung cancer, heart diseases and emphysema. Many countries have introduced smoking restrictions in public places to limit the impacts of this second-hand smoke on non-smokers. Scientific evidence shows that smoking affects both smokers and non-smokers in one way or another. The laws are intended to reduce health care costs while improving overall productivity of the employees in these public areas which include night clubs (WHO Framework Convention on Tobacco Control, 2007). Assisting businesses cope with the situation will help promote the implementation of the policy. It will also help waive the negative effects of smoking restriction in Sydney Club as noticed above. The Australian government need to provide technical assistance to club owners in order to make them comply with the smoking regulation. This has can be provided in terms of social education, financial support and helping them understand the requirements of the policy. 5.1 Conclusion The above findings may directly show the way smoking restriction affect the club in Sydney. The question whether smoke ban had an adverse or beneficial economic implications on the Sydney club cannot be widely analysed due to other factors that come into play. These factors include; the weather, local economy, politics, attractions offered by the clubs or customer preferences etc. What makes the whole picture complicated is the fact that since the smoking ban affects the revenues from the clubs, it remains to be seen that customer services and minimum wages are bound to change. These factors cannot in anyway be determined in an analytical point of view. The Australian government needs to conduct public education and encourage club owners on the importance of adopting the smoking restriction policy. This will ensure that the effects of second-hand smoke will not be felt at all especially when it comes to health costs. In this paper, the identified effects of smoking restrictions on Sydney clubs are; loss of revenue, unemployment, personal freedom limitations, frequent dashes to smoke and investment losses. 6.0 References Boyle P, Autier P, Bartelink H. (2003): European Code against Cancer and scientific justification: third version. Ann Oncol. 14 (7); 46-90 Straif K. (2005): Tobacco smoking and cancer: a brief review of recent epidemiological evidence. Lung Cancer 45 (2): 109-112 Schick S, (2005). "Philip Morris study on the effects of smoking ban in the hospitality industry; Tob Control; 10 (5); 230-244 Smoke free legislation consultation response, (2005): The Institute of Public Health in Australia, Free press, Athens, p. 10-17 7.0 APPENDICES Appendix A. Survey Questions/ Questionnaire The smoking restriction has led to revenue loss 1) Strongly agree ____2) Agree ____3) Disagree ____4) Strongly disagree ____ The smoking restriction has led to reduction of the number of customers of club 1) Strongly agree ____2) Agree ____3) Disagree ____4) Strongly disagree ____ The smoking restriction has resulted in dine and dashes 1) Strongly agree ____2) Agree ____3) Disagree ____4) Strongly disagree ____ The smoking restriction has resulted in huge investment losses 1) Strongly agree ____2) Agree ____3) Disagree ____4) Strongly disagree ____ The smoking restriction has led to employment losses 1) Strongly agree ____2) Agree ____3) Disagree ____4) Strongly disagree ____ Appendix B. Acknowledgement of consent form I, (First name) _____________________ (Last) ___________________________ I have read and understood all the information written in the consent form and promise to fully cooperate and assist the researcher. I will therefore take my role with full commitment. I. I have been given ample opportunity for any clarifications on the procedures of the survey and I have been also given full rights of participation. II. I have been given a copy of this document along with the consent form and I promise to understand them fully III. I acknowledge, by signing this document that I will fully participate in this study and will abide by the guidelines given to me. Club’s manager/Owner’s Name (First) ___________________ (Last) __________________ Date: ____________ Signature ______________________ Name of Witness (First) ___________________ (Last) __________________ Date: ____________ Signature ______________________ Being the primary investigator, I acknowledge that the above information is true and I have not enticed any participant in any way whatsoever. Name (First) ___________________ (Last) __________________ Date: ____________ Signature ______________________ Read More