| Ohio Losses July, 2010 Michael Marlow, Ph.D., just completed an economic study on Ohio's losses since the smoking ban. It can be found here. July 15, 2010 Ohio's bars, restaurants, and private clubs purchase their liquor from the State of Ohio, which they then resell by the shot. From public records requests from the Ohio Department of Commerce, Liquor Control Division, we obtained the numbers on number of BOTTLES of liquor LESS we bar owners, etc. purchased from the State of Ohio. Ohio's smoking ban went into effect January 1, 2007. | CY | Wholesale # bottles | Diff +- | Retail # bottles | Diff +/- | | 2003 | 12,165,908 | | 24,947,914 | | | 2004 | 12,547,239 | | 26,172,992 | 1,225,078 | | 2005 | 12,737,300 | | 27,528,918 | 1,355,926 | | 2006 | 12,940,262 | | 28,713,331 | 1,184,413 | | 2007 | 12,495,863 (enforcement of ban begins 05/2007) | (444,399) less than 2006 | 30,097,479 | 1,384,148 more than 2006 | | 2008 | 12,206,957 | (733,305) less than 2006 | 31,522,639 | 2,803,308 more than 2006 | | 2009 | 11,837,138 | (1,103,124) less than 2006 | 33,168,252 | 4,454,921 more than 2006 | | 2010 | 11,946,209 | (994,053) less than 2006 | 34,714,104 | 6,000,773 more than 2006 | | | | | | | | | | | | | decrease since 2006 - wholesale | (3,274,881) | | | | | | | | lost bar sales | $355,291,840 | (less cost to purchase bottles) | | | lost sales tax | $23,982,199 | | | | increase since 2006 - retail (off premise-home use) | 14,649,150 | more bottles sold |
The State of Ohio spent, through March 2010, $3.2 million to fine 939 businesses for violating the smoking ban. Of those 939 businesses, 876 of them were family owned Class D liquor permit businesses (family owned bars) and private clubs. 93% of the businesses fined don't even allow anyone under the age of 21. To spend this kind of money to put adult only, family owned establishments and private clubs out of business is fiscally irresponsible!!
Further: Below is a compilation of the data I received from my public records requests I I have included pdf documents from Liquor Control at the bottom of the page for 2003-2010. Ohio’s ban was effective 01/01/2007. Enforcement began May, 2007. The number of bottles cannot be manipulated nor can there be any other factors influencing those numbers other than the actual number sold or not sold. As you can see from the table above, both wholesale and retail sales in number of bottles increased from 2003 – 2006. However, 2007 was an entirely different picture. Liquor permit holders lost sales while home consumption increased significantly. These losses don’t take into consideration beer sales, incidental food, musician/entertainment, taxi cab or vending machine losses.
What are even more glaringly obvious are the retail sales. Customers now drink (and smoke) at home rather than in an adult venue. I don’t believe Tobacco Control considered these consequences. The anti-smokers never replaced the smoking customers Ohio lost. Ohio is not unique. One large Cincinnati Distributor[vii] claims losses of 7.2% for on premise packaged beer and 8.1% losses for on premise draft. Off premise packaged beer increased 1.7%. The vending industry is another casualty. According to David Corey, Executive Vice-President of the Ohio Coin Machine Association, they’ve lost 20%-30% since the ban. However, since a man’s word is not scientifically acceptable, I stuck to statistics provided by an Ohio state agency.
Further proof is the unemployment in Ohio. On August 15th, 2008, The Gongwer News Service (Ohio’s legislative news service) issued this release “Ohio Unemployment Rate Hits 7.2% in July, Highest Percentage Since 1992”[viii]. It reads “Service provider employment was down 9,100 during the period. The biggest declines were in leisure and hospitality (-3,000) and trade, transportation and utilities (-2,500).” Even with July’s high gas prices, the losses in leisure and hospitality beat trade, transportation and utilities COMBINED.
“Ohioans are Staying Home to Drink Their Liquor[ix]” – Dayton Daily News, January 15, 2009 “Ohioans are drinking more booze than ever before, and they’re drinking it more often at home and less often in bars and restaurants, according to sales figures released Thursday by the Ohio Division of Liquor Control. But it’s clear Ohioans’ drinking habits are changing. Wholesale sales of liquor — purchased by bars, restaurants, fraternal organizations and other permit holders — fell for the second straight year in both dollars and gallonage, while retail sales of booze in groceries and other liquor stores recorded robust increases. Overall, dollar sales reached $32.6 million in 2008, up 4.8 percent over 2007, while gallonage rose to 10.5 million gallons, up 2.6 percent.” For a second straight year in a row sales fell. Our ban was effective 01/01/2007. The article above is just one of many that hit the major Ohio newspapers the week of January 11, 2009. This begs the question: is Ohio different than all the other states with smoking bans or does no one in Tobacco Control research read newspapers? Obviously, the information is available for those seeking it, unless the researcher feels compelled to keep looking until he/she finds a number that, on the surface, seems to fit their need.
We really have reached our limit on researchers who selectively use data to prove their desired outcomes. Reports such as the Pierce, Leon paper lend credence to people like Shelly Kiser of the American Lung Association. She claims she doesn’t mean to call us business owners “liars” however studies show there is no economic harm to the hospitality industry”. Our documentation should be extensive enough to require either 1) a revision of this report, so that it does not continue to be cited as further justification that smokefree policies do not harm the hospitality industry, or 2) our letter to be accepted and posted with the Pierce, Leon paper.
The information about Ohio is absolutely biased and should be removed. Smokefree policies do hurt the hospitality industry, especially bars. And our data proves it.
Ohio is experiencing the highest unemployment rates since 1992, with the Services Industry leading the losses; the Hospitality Industry leads the Services Industry in job losses, more than Trade, Utilities & Transportation (with today's gas prices) COMBINED. According to the Ohio Department of Taxation, 313 businesses coded as "drinking places" (for sales tax reporting purposes) did NOT pay sales & use taxes in 2007 who paid in 2006. They either closed or kept the sales tax receipts (guess which it was). Not only are employees and business owners in the Hospitality Industry losing, the State of Ohio is losing MILLIONS in lost tax revenue. Who do you think makes up those losses? THE TAXPAYERS!! In essence, smokers and NON smokers are picking up the bill. Do you think the antis knew that? Here are the actual pdf reports on liquor sales sent as a result of a public records request. These are pdfs that are protected documents and cannot be changed. Look at NUMBER OF BOTTLES SOLD WHOLESALE AND RETAIL to see the TRUTH about the losses. STATE OF OHIO DOCUMENTS FROM DIVISION OF LIQUOR CONTROL 2003 2004 2005 2006 2007 2008 2009
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