A consultant hired by the state Health Department found no evidence that the Hawai'i ban on smoking in bars and most other public places has harmed tourism, but the report hasn't convinced tourism officials and bar owners.

The report, titled "One Year After the Hawai'i Smoke-free Law: Tourism and Hospitality Indicators Appear Unaffected" cost the state $13,000. It was prepared by Andrew Hyland and Cheryl Higbee, of the Roswell Park Cancer Institute in Buffalo, New York.

Critics of the Hawai'i Smoke-free Workplace Law — which went into effect on Nov. 16, 2006 — have said the law is bad for business and has contributed to last year's decline in the number of visitors to Hawai'i and has especially dampened enthusiasm from Japanese visitors, which have seen the sharpest decline.

Tourism is the state's largest private industry, bringing in some $12 billion a year.

The Health Department report reviewed total visitor spending as well as spending from Japanese visitors from the state Department of Business, Economic Development & Tourism, employment data from the state Department of Labor & Industrial Relations and the state Department of Taxation, citing an increase in jobs and spending.

But Hawai'i Tourism Authority president and chief executive officer Rex Johnson said the report doesn't include key economic indicators such as Honolulu Liquor Commission data, which track sales, employment and licensing data.

The study's authors said that that data "could not be used because their data did not fall within the time period needed to evaluate the effect of the law. Their most recent figures available, covering fiscal year 2007 (July 1, 2006-June 30, 2007) contained 4 1/2 months of pre-law data not useful to the report. In time, more data will be available to further study this issue."

The study contradicts what some tourism officials have heard from agents and tour operators, that the law is discouraging some visitors, especially those from Japan.

"We know there has been some effect in the Japan market," Johnson said. "As to the extent, we will never be sure."

But Johnson also said a more effective study would look beyond the data used in this initial study.

"The industry was expanding during that time so one would expect that there would be in increase in spending and employment," he said.

He said tourism officials in Japan had to run a marketing campaign specifically aimed at explaining that the new law "didn't make Hawai'i smoke-free."

Bill Comerford, spokesman for the Hawai'i Bar Owners Association, said he doesn't believe the Health Department-sponsored report gives an accurate view of the economic hit that bars have taken because of the smoking ban.

He said the smoking ban has a big impact on bar business, and he estimates between 16 and 20 bars statewide have gone out of business in large part due to the ban: "It always affects bars. You can't get the numbers from a bar that's out of business."

Comerford is a partner with E & J Lounge Operating Co., which operates Kelley O'Neil's, O'Toole's Irish Pub and the Irish Rose Saloon. The Hawai'i Bar Owners Association represents 105 establishments, he said.

"Why is the Health Department going to a cancer institute to get an economics report?" Comerford asked. He said it would have been better to reach out to a neutral organization such as a business or economic expert.

State health director Dr. Chiyome Fukino said the institute was hired because it had experience judging other bans in New York and Delaware.

"We anticipated that, like other states where similar laws have been enacted, there would be no negative economic impact," Fukino said.

"These findings have helped to confirm our original assumptions. Moving forward, the Department of Health will continue to assess visitor industry data to track changes."

Comerford said the economic indicators do accurately reflect what is happening with restaurants, who have seen overall sales grow after the ban. "We agree, restaurants do come back stronger. "

Comerford said he is arguing for the businesses he represents and fully understands the Health Department's policy position against smoking.

"I'm a nonsmoker," he said. "It's about commercialism and being anti-business."

He said he finds that 65 to 75 percent of his bar patrons are smokers, who are discouraged from going to bars where they can't smoke.

Some of the study's specific numbers cited are: