The ban on smoking in public places is taking a toll on the pub trade in Witney.
But there are other factors, including cheap alcohol on sale in supermarkets and steep rises in the cost of energy.
Two pubs in the town - The Plough, in High Street, and Court Inn, in Bridge Street - are also still closed after being damaged in last July's floods.
The Butchers Arms, in Corn Street, is on the market, while at the Red Lion, also in Corn Street, licensees Paul and Lesley Wakefield have had enough and are retiring to Turkey. Mr Wakefield said: "I predict you will be seeing more pubs closing in 2008 and 2009 than ever before. The margins have fallen dramatically over the past 30 years. There's less to pay the bills with."
The chairman of the Witney Licensees' Association, Danny Patching, says figures are now beginning to show that the ban "has not been good for the trade".
Mr Patching, who runs The Bell, in Ducklington, said: "There is not a great big army of non-smokers coming in to replace those we are losing.
"Nationally, the figures now are that we are eight and a half per cent down on trade since last July. Obviously, there are some pubs which do well with food, who are not so badly hit.
"But smokers were the backbone of many pubs and I suspect many are now getting cheap booze from supermarkets and sitting at home."
The ban came into effect last July and, while some pubs have set up smoking shelters, customers at others have to go out into the street.
Lesley Semaine, who runs the Royal Oak, in High Street, is also the chairman of the town's Chamber of Commerce.
She said: "I've been 22 years in the town and this is the first time I have lost out on trade in the November and December period."
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