CAMBERLEY and BRIGHOUSE, England, December 17 /PRNewswire/ -- The largest survey of licensee opinion since the smoking ban reveals the massive investment made by pub operators to beat the loss of smoker business.

The survey responses from 2708 members of BII, the professional body for the licensed retail sector, and the Federation of Licensed Victuallers' Associations, revealed that licensees have spent millions creating attractive outdoor areas to keep their smoking customers happy, since the indoor smoking ban on 1 July 2007. The number with covered outdoor facilities reached 70% of all pubs an increase of almost 130%; and the number offering food - from sandwiches to full service menus - has increased steadily.

Even so, the smoking ban has had a profound impact on business as smokers changed their habits. 58% of licensees had seen smokers visiting less frequently and 73% had seen their smokers spending less time at the pub - leading to an overall slump in sales of 7.3% as smokers stayed away. Even more worrying for the industry, only 26% noticed that there were more non-smoker visits or that they stayed longer than before (25%).

John McNamara, BII Chief Executive, said: "The smoking ban has been one of the greatest challenges that our industry has faced. We made a massive effort to advise our members how to innovate to beat the ban and many pubs that sell a lot of food, and have invested, have prospered. Sadly these have been outweighed by the far greater number of more traditional pubs who rely more on drink and smokers - especially those that could not afford to invest, or did not have the space to develop outdoor areas."

"Our message to the public is to get down and visit your local. Our pubs have better facilities than ever before; non-smokers can enjoy the new cleaner atmosphere and smokers can easily find pubs with comfortable outdoor areas in which to smoke. England's pubs have never offered a better service - and we want as many people as possible to enjoy our hospitality."

Tony Payne, Chief Executive of the FLVA said, "Traditional working men's pubs have been hit hard, especially those with no room to accommodate smokers outside. We accept the ban as a public health measure but it has come at a heavy cost for our pubs, and the Government should recognize this and compensate us. 89% of the people who responded said that there be rate relief for licensees that have lost business. This is a case of 'collateral damage' where we have been caught in the crossfire of the smoking issue, Whilst the trade may well recover eventually this will be the end for many traditional locals and the tradition that goes with them."

Some quotations from licensees:

Rachel Morgan, Northampton "Weekends are up but weekdays are down - but only because we have an amazing smoking area - other pubs have lost customers to us."

Ms Eyles, Daventry "We have tried to introduce weekly food-themed evenings but there simply have not been the people in to support it."

Irene Nuttall, Preston "I am still waiting for the do-gooders who don't smoke to come in."

T Gare, Eastbourne "I have just lost my pub to the ban thanks to the Government. It cost me GBP95,000."

Notes to the editor:

The survey was mailed to 17,500 members of the BII and 600 members of the FLVA in week commencing October 2007. A total of 2708 questionnaires were returned (15.9%). A fuller breakdown of the responses available on request.

For further information please contact: Melanie Haynes BII Corporate Communications Manager +44(0)1276-417863 melanie@bii.org FLVA Tony Payne CBE T: +44(0)1484-710534 E: admin@flva.fsbusiness.co.uk

For further information please contact: Melanie Haynes, BII Corporate Communications Manager, +44(0)1276-417863, melanie@bii.org; FLVA - Tony Payne, CBE, T: +44(0)1484-710534, E: admin@flva.fsbusiness.co.uk