The Night Time Industries Association (NTIA) has released its latest Night-Time Economy Insights Report, which reveals quieter than usual October to December ‘peak’ period as cost of living pressures and public transport uncertainty saw patrons spending less.
The NTIA says that data raises concerns that more support is needed to help night-time businesses to grow audiences and markets over the incoming colder and quieter months.
Comparing October to December 2024 to the same period in 2023, the number of individual visitors to an area declined while the number of total visits to nightlife precincts increased. The NTIA said that figures underscore the need to invest in audience development programs to get more people out at night.
The data also found that people were choosing to go to venues closer to home as public transportation uncertainty weighed on their night out decision making. In Kings Cross, visitors from neighbouring suburbs such as Elizabeth Bay, Woolloomooloo and Rushcutters Bay outweighed visitors from areas such as Randwick compared to the prior July to September 2024 quarter.
Age and income factors surfaced in the October to December window with the 35-39 age group continuing to stay home, potentially due to mortgage and cost-of-living pressures limiting disposable income. Meanwhile the under-24 demographic remains low, likely due to rental pressures and financial constraints.The 30-34 age group remains the most active nightlife demographic.
Night Time Industries Association CEO Mick Gibb said the quieter than usual summer underscored the need to focus on reducing the cost of doing business after dark and incentivising new audiences to get out at night.
“Summer is usually the boom period for night-time businesses where people who don’t usually go out at night catch up with friends after dark. Unfortunately the number of unique visitors coming out at night has fallen compared to previous years as cost of living pressures continue to bite.
“We know that a key consideration for people heading out at night is the ability to get home safely and affordably. It seems that uncertainty about public transportation due to prolonged industrial action has meant people decided to stay local or stay in.
“This will only stand to make it harder for night-time economy operators heading into the quieter winter months.
“There’s been great progress by industry and the NSW Government to improve the regulatory and legislative environment for night-time economy businesses but we need to continue to work together to start tackling some of the areas that impose unnecessary, excessive and burdensome costs on operators.
“Whether its exorbitant public liability insurance costs, often more than $75,000 per annum, development application and consultant fees, ongoing alcohol excise increases for spirits or user pays policing fees, night-time economy businesses are stung with costs at every turn.
“New South Wales has all of the ingredients to be the global night life leader, but we need to continue addressing the challenges that make running a business after dark exceedingly costly and difficult.”
The report also highlighted that night-time patrons in the middle-income group ($40,000 – $79,999) declined, while the $80,000 – $149,999 income group has dropped significantly (-2.9 per cent in some areas).The highest income group ($150,000+) remains stable. The average weekly food and beverage spend for the October to December 2024 period was found to be $184 per person, while recreational spending sat at $114.
While all areas faced some challenges over the period it was areas with a high concentration of office workers that saw significant increases in foot traffic during Melbourne Cup and Christmas trading periods.