REGIONAL pubs and clubs have been hit hardest by new anti-smoking laws, with some recording a downturn in customer numbers.
Smoking ban burns pokie profit
October 01, 2007
Kelvin Bissett
Kelvin Bissett
POKER machine revenue took its first backward step in decades following the July 2 smoking bans – figures show turnover fell nearly half a billion dollars that month.
The prohibition on smoking indoors succeeded where years of harm minimisation failed – slashing NSW pokies revenue literally overnight.
In July there was a 10.64 per cent fall in hotel pokie revenue and a 8.13 per cent fall in pokie revenue in clubs – $453 million less whent through pub and club poker machines in July.
A breakdown shows clubs in Strathfield in Sydney’s inner west were among the worst hit, with turnover slumping by 33.85 per cent.
The figures, described as “preliminary” by the Office of Liquor, Gaming and Racing, compare June turnover with July turnover.
Turnover is the total amount wagered, including losses and winnings reinvested, in poker machines.
The savaging of pokies revenue comes as the State Government grants hotels access to Keno and possible changes to the six-hour shutdown rule.
Greens MP Lee Rhiannon said the timing of the Government move to award keno to hotels and lift the six-hour shut downs was “suspicious”.
Overall, clubs turnover fell from $3.68 billion in June to $3.38 billion in July. Hotels went from $1.46 billion to $1.30 billion.
Clubs in the St George area were also big losers, having a 21.06 per cent cut in turnover while those in the Wollondilly area experienced falls averaging 20.28 per cent.
For hotels, areas worst affected in Sydney were Concord local government area, with a 27.59 per cent fall, Hawkesbury with 16.76 per cent and Hornsby, with 14.53 per cent.
Clubs and hotels in some country areas also suffered big losses.
In Lockhart, in the Central Murrumbidgee area, the losses for pubs were put at 56.41 per cent.
St George Leagues Club general manager Danny Robinson said the smoking ban had resulted in his club’s worst fears being realised.
The club has prepared as best as it could, installing an outdoor smoking area and ticket out technology that enables smokers to easily cash out to leave the gaming room for a cigarette.
Mr Robinson said the club was hoping that the slump would pick up in the months ahead.
“We believe it is something that has to be viewed over the long term. August was better than July and September has been better than August,” he said.
Australian Hotels Association deputy chief executive officer David Elliott said the figures were worse than his organisation had predicted.
Like clubs, hotels were optimistic patronage would pick up.
“I think its going to take 12 months for us to work out what’s really happening to patronage,” Mr Elliott said.
Pokie revenue down after smoking ban
October 1, 2007
Pokie revenue may have dropped dramatically since the smoking ban was introduced in July, but people’s health comes first, NSW Premier Morris Iemma says.
News Limited reported Monday a plummet in pokie revenue of nearly half a billion dollars in the month of July after the ban was introduced on July 2.
But Mr Iemma says the drop-off was anticipated and worth it if it protected people’s health.
“Our revenue projections are right on estimate,” Mr Iemma said.
“This is being done for health reasons … it’s not an issue of revenue here. We had estimated that there would be a decline in revenue.
“We get an improvement in people’s health – that’s the important thing, and that’s the good thing.”
Fears smoking ban may extinguish regional pubs
July 24, 2007
It is predicted the introduction of a total ban on smoking inside South Australian hotels is likely to force some country pubs to close.
The Australian Hotels Association (AHA) is warning country pubs face a bigger downturn than their city counterparts when the ban is introduced in November.
Tasmania was the first Australian state to bring in such a ban, which has been in place since the start of last year.
The general manager of the AHA in Tasmania during that time, Daniel Hanna, says it is likely some South Australian country pubs will have to close if the Tasmanian experience is followed.
“While the overall downturn has been between 10 and 12 per cent, we know that some country pubs have gone down by up to 40 per cent … some pubs, particularly those that were marginal anyway, may be tipped over the edge by these changes – most will adjust over time but there will be some short-term pain I would expect for most pubs.”
Smoke bans ‘lead to illegal grog shops’
January 15, 2007
SMOKING bans could spark an increase in drink-driving and underage drinking as traditional pub clientele turn to backyard establishments, a hotelier has warned.
Tasmania, the first state to place a blanket ban on smoking in bars 12 months ago, has experienced a rise in illegal pubs, a situation hoteliers say is likely to spread.
Sly-grogging in sheds, garages and backyards had been reported in about 30 towns across Tasmania, with up to two or three unlicensed premises per town, Australian Hotels Association, Tasmanian manager Daniel Hanna said today.
Most reports were from regional or country areas, although some “shed drinking” was occurring in the suburbs, usually in areas with a large proportion of traditional clientele, such as smokers not interested in gaming facilities.
“We’ve been snowed under with reports,” Mr Hanna said.
“Some of these premises are operating everyday with a large number of people drinking for a large number of hours.
“There is no responsible serving of alcohol, no supervision of minors, these places are not licensed and they are not regulated.
“The situation is setting the scene for irresponsible drinking, drink-driving and the sale of alcohol to minors.”
He said smoke-free legislation introduced into Tasmania in January 2006 was one explanation for the spate of backyard establishments.
With the rest of Australia having brought in, or in the process of bringing in, their own smoke-free laws, the number of illegal, unlicensed drinking houses was expected to spread, he said.
AHA national executive director Bill Healey urged state police and liquor licensing authorities to take a proactive approach to the problem.
The phenomenon of backyard pubs would be discussed at a meeting of AHA executives next month, Mr Healey said.
“It’s an illegal activity no different from drug-pushing. We want it nipped in the bud as quickly as possible,” he said.
Tasmania Police today said they had received no formal complaints about illegal pubs and had about two reports of illegal liquor sales in the last two years.
“Police view these sorts of allegations seriously and appropriate action will be taken if people are found to be breaching liquor licensing laws,” Assistant Commissioner Scott Tilyard said.
Fired up on smoking ban
August 26, 2006
Melissa Maugeri
Melissa Maugeri
REGIONAL pubs and clubs have been hit hardest by new anti-smoking laws, with some recording a downturn in customer numbers.
But clubs in metropolitan areas have seen their food revenue increase, as more non-smoking patrons return.
Geoff Parker, the acting chief executive officer of Clubs Queensland, which represents 95 per cent of licensed clubs in the state, said regional and remote areas were the hardest hit by the laws.
Some of the clubs in regional areas had a higher proportion of smokers than those in metropolitan areas.
But there were indications some people who had stayed away from pubs and clubs were returning after the changes to smoking regulations.
“An interesting trend has been an increase in food revenue,” he said.
Restaurant and Catering Queensland chief executive officer James Visser said the implementation of the laws from July 1 had been embraced by customers.
The laws mean smoking is now prohibited from all indoor areas of licensed premises with the only exemption being the high- roller rooms in Queensland casinos.
Pubs and clubs have an exemption that allows them to have a designated outdoor smoking area where patrons can drink and smoke.
But premises have to meet provisions that include buffer zones and a smoking management plan.
“We haven’t had many members complain at all,” Mr Visser said.
