The Australian Hotels Association says Northern Territory pubs, bars and clubs should expect a drop in revenue when smoking is banned at licensed premises.
The Northern Territory Government says smoking will eventually be banned in clubs, pubs and bars.
South Australia went smoke-free in November, and country pubs have experienced a 40 per cent downturn in gaming revenue since then says the general manager of the South Australian AHA, Ian Horne.
He says the Territory Government must help venues set up outdoor areas if it wants to avoid the drop in business being experienced in his jurisdiction.
"Those that were able to invest the money in putting out proper break out areas, that is beer gardens and alfresco type environments, have been able to cope with the drop in revenue more than those who simply couldn't or wouldn't or didn't."