The industry group set up to lobby against the smoking ban has called for the law to be reviewed in light of this week's worrying Exchequer returns.
The Irish Hospitality Industry Alliance said the returns, showing duties on tobacco, drink and a number of other categories running €100 million behind target, showed the sector was "having a bad year and cannot afford another economic shock.
"A blanket ban will cause a significant sales decline, will seriously hurt businesses and will particularly affect the small, marginal businesses, especially rural public houses, B&Bs, guesthouses, coffee shops and cafes."
The Department of Health has denied the allegations, saying a study commissioned on behalf of the Department of Tourism showed there would be no negative impact on visitor numbers.
Meanwhile, the Vintners' Federation of Ireland yesterday released the findings of a survey of rural bar workers, claiming 85 per cent would prefer a non-smoking area in each pub to a total ban.
Conducted by Lansdowne Market Research on behalf of the VFI, the study said more than 80 per cent of workers foresaw job losses from the proposal.
Of 350 bar staff surveyed in telephone interviews, 70 per cent expressed support for the association's "compromise" proposals on the ban, which would see half of each premises designated non-smoking from January 2004.
Six out of 10 respondents were said to be in favour of derogation for owner-managed pubs with five employees or less. More than half of those surveyed agreed the area around bar counters should be designated non-smoking.
The VFI, which represents 7,000 mainly rural publications, is also proposing the installation of ventilation equipment which would deliver 12 air changes per hour.
