Enigma Cafe and Bar owner Romeel Yousif in his "outdoor" smoking area. He says he is losing about $2000 a week because customers can no longer smoke there.

The war on Wellington's outdoor smoking areas has claimed its first victim.

Enigma Cafe and Bar in Courtenay Place has been forced to ban smoking in its outdoor area after a two-year battle with the Ministry of Health over how enclosed the area should be.

The area is covered by an awning, which owner Roumeel Yousif says is needed to protect customers from the rain, and from people in the high-rise apartments next door dropping bottles on them.

But the ministry decided the awning provided too much coverage and was breaching smokefree laws introduced 11 years ago that banned smoking in bars.

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Enigma's parent company, Nashama Ltd, pleaded guilty in Wellington District Court on Monday to a charge of failing to take all practicable steps to ensure people did not smoke in its licensed premises.

The company was fined $1350 and ordered to pay $500 to the ministry.

Nashama originally pleaded not guilty to the charge, but later changed its plea.

Outside court, Yousif – who does not smoke – said he did not agree with the ministry's view but pleaded guilty because he did not have the time or money to spend fighting the case.

The outdoor area at Enigma, which seats about 38 people, had always passed inspections right up until two years ago, when "the ministry decided it wanted to get tough".

Yousif said he cut holes in the awning to make it more breathable, but the inspectors returned a year later and told him to take it down completely or he would be taken to court.

He asked for open-air measurements or guidelines he could follow, but was not given any, he said.

The awning came down down six months ago but Yousif was forced to put it back up three months later because customers were being exposed to bad weather and the neighbours occasionally throwing bottles .

Even with the awning back in place, smokers were choosing to dine elsewhere, which was costing Enigma about $2000 a week in lost revenue, Yousif said.

Hs lease was up for renewal in four years and he was "unsure" if it would be worth continuing. "Maybe I'll walk away and find something else to do that doesn't involve smoking."

A new ministry guideline proposed last April would require at least 35 per cent of the roof and walls of a smoking area to be "open" – a standard opposed by the hospitality industry.

Another company, The George on Willis Ltd, was also in court on Monday, facing a similar charge to Enigma. That case was delayed for two weeks.

The owners of a third Wellington bar, Public, have said they will defend a smokefree charge at a hearing in November.