Clandestine "garage bars" are springing up around Northland as smokers try to get around laws banning smoking in pubs.
The rise in unlicensed bars is thought to be hitting the profits of pubs and bars, with some reporting takings down by a third.
Now the Hospitality Association of NZ says the situation is so bad it wants the police to crack down on the bars it dubs illegal.
Hikurangi Hotel owner Geoff Amos said since smoke-free legislation was introduced on December 10 last year -- banning smoking in licensed premises, restaurants and workplaces -- his takings had fallen by about a third.
Mr Amos said the disappearing patrons were frequenting garage bars in the township, which did not have to adhere to the smoke-free legislation or alcohol laws.
The hotel had spent more than $8000 constructing a covered outdoor area for smokers, but many still preferred to drink at a garage bar, he said.
"What annoys me is that these places aren't covered by the same rules. If somebody lights up inside we can get fined. Plus there's all the regulations we have to comply with," Mr Amos said.
Tikipunga Tavern manager Tapina Taniora said profits were down pub by about 10 per cent as smoking customers preferred to go to garage bars.
"We've even lost one of our dart teams. They moved into one of these garage bars to play," Ms Taniora said.
Hospitality Association spokeswoman Sara Tucker, who covers the Northland area, said garage bars were a problem around the country, particularly in rural areas, and were having a major impact on pubs and bars.
"It's clearly an outcome of smoking legislation and another slap in the face for the small hospitality businesses that are operating in a difficult enough area as it is," Ms Tucker said.
"We are encouraging the police to take it seriously and get tough on any illegal garage bars."
- NORTHERN ADVOCATE (WHANGAREI)
'Smoke easy' bars hit pub profits
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