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Bars and cafés to lose hefty amounts on smoking ban

The smoking ban in cafes and bars, which  is expected to come into force next April, will result in a 16-18% drop in the revenues of such businesses, and the estimated loss for the national economy might exceed HUF 260 billion in 2012, according to Tamás Háber, honorary president of the association of Hungarian hospitality companies (MVI) said.

The new legislation would ban smoking both at indoor and certain outdoor places, as well as in public areas.

The total loss for the tobacco industry will come to HUF 67 billion, and will be around HUF 130 billion for the hospitality sector, according to the MVI president’s calculations. Employment can also fall back 20% in the sector.

The ban is also likely to have an impact on the food and agriculture industries - output might decrease 4-5% in both sectors, he added.

Currently, there are some 56,500 businesses operating in the hospitality sector in Hungary, generating a total amount of HUF 480 billion in annual revenues. Pubs and cafés account for 60% of all hospitality facilities.