3.Panel9 Ketut Suarjana good governance II

The Implementation of Smoke-free Law in Bali:
Economic Impact among Hotels and Restaurants

dr. Ketut Suarjana, MPH
Bali Tobacco Control Initiatives
PSKM, FK, Univ. Udayana

Background
• The high prevalence of smokers in Bali
(31.0%)
• Since 2012 Bali provincial government has
implemented provincial smoke-free law
(Perda KTR)  followed by smoke-free law
at district level (9)
• Smoke-free law: 7 areas (Health, Education,
Workplace, Worship, Children playground,
public transport, public places including
hotels and restaurants)

Background
• Compliance study in 2014 : overall

17,2% (hotels 11,7%, restaurants 2,3%)
• Bali as an international tourist
destination  international standard of
the facilities (hotels and the restaurants)
• The compliance remains low : the
concerns of such as visitors reduction,
increase cost of smoking room provision
(economic aspect)

Aims
• To assess the economic impact of
smoke-free law implementation
among the hotels and restaurants in
Bali
• To gain perception of employer and
employee regarding the
implementation of smoke-free law

Methods
• The study is a case study (5 hotels

and 4 restaurants located at
Denpasar and Badung district)
• Samples selected purposively,
involving 10 managers, 10
employees and 10 visitors
• Data collected: in-depth interview,
document survey, and checklist
observation

Result
• Most of samples (hotels and restaurants)
has implemented Perda KTR
• The implementation:
– Hotels: no smoking signage at stratetgic
spots (lobby, pool, rooms), no ashtray
provision, guest rule including smoking ban
and fine for the violation
– Restaurants: no smoking signage at
entrance and inside, no ashtray provision, no
fine for the violation


Result
• The managers and employee
perceived the implementation of the
Perda KTR well.
• However, they also perceived the
importance of smoking room
provision
• Visitors perceived the hotels and
restaurants has already implemented
Perda KTR, and they fully agree to
obey the law

Result
Grafik 1.1 Gambaran Kunjungan Hotel Tahun 2010 - 2014
100000
90000
80000
70000
60000

50000
40000
30000
20000
10000
0
Tahun 2010

Tahun 2011

Tahun 2012

Hotel 1

Tahun 2013

Tahun 2014

Hotel 2


Since the law issued in 2011 then implemented in 2012, the
number of visitors slightly decreased, then the number
increased significantly in the year after (2013 and 2014)

Result
Grafik 1.2 Gambaran Pendapatan Hotel Tahun 2010 - 2014
100000000
90000000
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
Tahun 2010

Tahun 2011


Tahun 2012
Hotel 1

Hotel 2

Tahun 2013

Tahun 2014

Series 3

The average of revenue was fluctuating. Some hotels has a
small reduction at a year after implementation. However,
after two years, it shows a huge enhancement.

Result
Grafik 1.3 Gambaran Pendapatan Restaurant
Tahun 2010 - 2014
6000000


5000000

4000000

3000000

2000000

1000000

0
Tahun 2010

Tahun 2011

Tahun 2012

Tahun 2013


Tahun 2014

Pendapatan

The average of revenue in restaurant also fluctuating.
Restaurants show an enhancement since the law implemented
then decreased. The customer come to a restaurant depend on
the food and the service. Therefore, no relationship between

Result
Grafik 1.4 Gambaran Pembiayaan Maintanance Restaurant Tahun 2010 - 2014
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
Tahun 2010


Tahun 2011

Tahun 2012

Tahun 2013

Tahun 2014

Maintenance

Since the Perda KTR implemented, the maintenance cost also
can be reduced significantly

Conclusion
• The implementation of Perda KTR among
hotels and restaurants was vary
• The managers, employees and visitors
support the implementation of the Perda
KTR in hotels and restaurants

• Regarding the economic impact, the
smoke-free law implementation has no
relationship and even increases the
occupancy as well as the revenue of hotels
and restaurants.

Policy Recommendation
• The managers should implement the
Perda KTR completely since its
implementation could increase the
occupancy as well as the revenue.

Thank
www.balitc.org
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