The BII has slammed comments from the Council of Circuit Judges on alcohol-related crime and binge drinking.
The judges claimed that extended drinking hours will result in a huge escalation of crime and would result in an escalation of "offences of rape, grievous bodily harm and worse".
The judges say the government should act to curb alcohol-fuelled violence by increasing the price of drinks.
John McNamara, chief executive of the BII, said: "There has been a great deal of panic in the media today regarding the changes to licensing due to come into force in November.
"Whilst the Act does allow for a flexible system of licensing hours, most pubs will simply want a couple more hours to continue to serve their customers.
"The vast majority of licensees are responsible and take their duty of care very seriously - no good licensee wants to encourage irresponsible drinking, by doing so he or she could be risking his or her livelihood.
"There is also strong evidence that by eliminating the 'terminal hour' culture, allowing different more flexible closing times, street crime and disorder is actually reduced.
"The Isle of Man is a perfect example of the success of de-regulating licensing hours and crime rates there are down."
Judges fear drinking crimewave (10 August 2005)