Smoke-free legislation impact on the hospitality sector in the Republic of Georgia

Introduction: Comprehensive smoke-free (SF) policies reduce secondhand smoke exposure and improve population-level health outcomes. However, some decision-makers heed the tobacco industry's argument that SF policies negatively impact the hospitality sector. This study examines the intermediate economic impact of the Republic of Georgia's SF legislation (effective since early 2018) on the hospitality sector in Georgia.

Methods: Analyses used 2015-2019 hospitality sector data from Georgia's National Statistics Office. Simple linear regression models were conducted to examine the impact of Georgia's SF policy on economic indicators (ie, number of employees, food service facilities, hotels and international visitor trips; employee remuneration; production value; turnover; hospitality sector value added tax (VAT)).

Results: Analyses indicated no negative impact on any of the economic indicators. Instead, from 2018 to 2019, the number of food service facilities, hotels and international visitor trips increased by 20%, 17% and 7%, respectively. Additionally, there were increases in the number of employees (9%), average employee remuneration (3%), production values (13%), turnover/total revenue (13%) and VAT (26%). Moreover, the economic indicator values during the studied period were strongly correlated with each other (p>0.95) and indicated a consistent and uniform improvement.

Conclusions: After the SF legislation went into effect, the hospitality sector demonstrated significant growth and no adverse effects in the economic indicators studied. The findings underscore the importance of maintaining and enforcing SF policies in Georgia and expanding the evidence base for SF policies globally.