Alberta's moves to discourage smoking are paying off with decreased tobacco sales in the province, anti-smoking lobbyists said Friday.

Figures released by Alberta Finance show sales of tobacco products dropped by three per cent in the fiscal year that ended March 31, compared to the year earlier.

It's the first time in five years that sales have dropped, despite an increase in the province's population, said the groups.

In January, Alberta imposed a provincewide ban on smoking in public places. The previous April it increased taxes by 63 cents on a package of cigarettes.

"The complimentary timing of these two initiatives may be having a synergistic effect on reducing tobacco consumption through the province," said Donna Hastings of the Heart and Stroke Foundation of Alberta.

The groups are expecting a further slide in sales starting Tuesday, when stores in the province are required to cover up their so-called huge displays of cigarettes known as "powerwalls."

"Powerwalls are one the most important marketing tools available to the tobacco industry," said Les Hagen, with the group Action on Smoking on Health.

"These ominous displays are intended to stimulate impulse sales and to help create a positive image for a product that kills 3,000 Albertans each year."

The final step in the the province's tobacco reduction strategy comes into effect at the end of the year. It will ban the sale of tobacco in pharmacies, health care facilities and post-secondary institutions.