The new policy could also see all council events, as well as events held at any of the council's smoke-free public places, be required to be smoke-free.
The council's senior policy adviser, Rosemary Viskovic, said the objective of the policy was to improve the health and wellbeing of Rotorua communities by reducing the prevalence of smoking and de-normalising smoking behaviour.
But the report says compliance with the policy would be voluntary and not enforced by the council.
"Compliance is instead encouraged by educating the public to model and promote appropriate behaviour, which in turn encourages others to be smokefree," she said.
Mayor Steve Chadwick said she supported any move to ban smoking and that the main issue with the new smokefree areas was Eat Streat.
"It's not punishing smokers at all."
She said because the policy would be introduced incrementally it gave businesses time to come to terms with the ban.
Councillor Rob Kent, a reformed 60-a-day smoker, said he would prefer the entire ban to be done in one phase, not two, as he thought it would be simpler to explain to the public in full and supported any initiative to help people give up the "disgusting habit".
Councillor Tania Tapsell said she had concerns about domestic and international visitors going to Eat Streat who would not be aware of the ban.
She also asked where people would go if they were not allowed to smoke on Eat Streat.
Mrs Viskovic said staff would work with businesses regarding the placement of "subtle signage", ash trays and areas where people would be allowed to smoke.
But councillor Charles Sturt, who is a smoker, said the ban was over the top and could be seen as picking on smokers who by and large were responsible and took into account people around them.
"I am one of a dying breed as a smoker and I find this partly offensive. Many smokers are self managing and don't smoke where people eat.
"I think this is going too far. It will further victimise smokers.
"But, I do support the Eat Streat smoking ban and bans around other eateries," he said.
CBK Craft Bar and Kitchen general manager Luke Van Veen said he felt it would have a negative impact on late night hospitality outlets.
"I feel the displacement in the hospitality market will be big with increased costs for operators to adhere to the new smoking area policies and rules, plus the loss of revenue from those customers that now will choose to stay home where they can feel comfortable having a cigarette with friends."
Atticus Finch co-owners Kay Thompson and Cherry Te Kiri, previously told the Rotorua Daily Post they supported the move, but understood some bars could have a problem with it.
Their restaurant has been non-smoking since they opened.
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Rotorua Lakes Council Smoke-Free Outdoor Spaces Policy
Smoking is already banned at:
- Council-managed Tokorangi Forest
- Council-owned playgrounds
- Rotorua Community Youth Centre Trust premises
- Tennis facilities at Lynmore, Okareka and Manuka Cres
- Child Care Centres; including kindergartens, play centres, creches and kohanga reo on council reserve land and immediate surrounds
- Public toilets
- Sports areas at Smallbone Park hockey turfs and Westbrook netball courts
- Kuirau Park Rotary North Saturday Market
- Council workplace properties
Smoking will be banned by January 2017 at:
- All bus stops and shelters
- i-Site and library surrounds including Jean Batten Park
- All sports grounds
- Rotorua International Stadium
- All youth spaces and skate parks
- All council-controlled reserves and parks including lakefront reserves
Smoking will be banned by January 2018 at:
- Eat Streat
- Outdoor pavement eating places
- Markets held in the inner city
- Entrances and exits to public buildings and facilities used by the public