Over the past decade, many Canadian municipalities and some provinces have implemented smoke-free legislation to prohibit smoking in hospitality facilities to protect the public and workers from the harm caused by second-hand smoke. Yet, there is still concern in some quarters that smoke-free legislation could hurt the hospitality sector. This report provides a summary of high quality studies of the economic impact of smoke-free legislation on the hospitality industry. It introduces criteria for assessing the quality of studies, provides an overview of studies available to date, and presents summaries of studies selected on the basis of methodological quality and peer review. Most of these studies were conducted in the United States and only a few in Canada and Australia; however, their scientific methods and results are widely applicable and could help guide tobacco control policy in Canada.