Patrons are no longer permitted to light up in any area of a club or pub that is less than 25 per cent open to the elements.

The new laws are the final stage of the three year plan to cut all smoking in NSW pubs and clubs. Tea Gardens Hotel licensee Brett Steele said the new laws were a welcome challenge for the operators of pubs and clubs.

"The beer garden is the first place people go (when they arrive here)," he said.

"We've had three years to prepare for this."

Tea Gardens Hotel began preparing for the new laws when they completed renovations at the pub 12 months ago.

Brett said the renovations had served a number of purposes.

"The renovations were done not only to cater for the smoking laws, but also to reduce noise and better cater to our patrons needs," he said.

"One of the main areas of focus for us was to design the hotel so that it was only a few steps from anywhere in the building for people to step outside and have a smoke."

"This is an opportunity to embrace, a real challenge. As they say, one door shuts and another opens."

Tea Gardens Hotel second-in-command Mark Donnan, himself a smoker, also agreed with the new laws.

"I think it's a good thing overall, first and foremost for the health of our nation," he said.

"Any smoker will tell you they want to quit."

He said hotel staff would be one of the main beneficiary's of the new laws.

"The majority of our staff are non-smokers and they're extremely happy with the new legislation," he said.

"Through our renovations we've tried to facilitate both smokers and non-smokers and provide the best possible service for both."