My initial thought about this space was: CLEAR BLUE SKY. Therefore my design keeps at least partial view towards the only open side- upwards. With seating placed under the pergola, it has been provided separate lounge zone with bench covered by pillows, removable in order to provide extra space for hammocks. Open area accommodates small dining with bbq and sink.
The entire terrace is designed to represent unique ambient, surrounded by greenery, easy to maintain, or adjust for different needs and occasions, with glimpse of Mexican sensibility and possibility to change visual appearance by simply adding few pillows, as shown in renders.
Enjoy!