Number of bars rose last year in the NSW capital, Brisbane and Perth, city survey shows, while restaurants lead Victoria boom

This article is more than 2 years old

This article is more than 2 years old

Sydney’s after-hours economy is bouncing back following two years of post-lockout laws blues and Melbourne’s nightlife is booming thanks to a big jump in spending on eating out, a survey has claimed.

The Victorian capital has tried to capitalise on the regulatory problems of its northern rival by claiming to be a 24-hour city, but it saw the number of drinking venues decline, according to a study of capital cities across Australia using data from the Australian Bureau of Statistics.

Each region’s nightlife was measured according to the number of venues, jobs and turnover across the food, drink and entertainment sectors, and it saw Brisbane and Perth record an increase in the number of late-night venues.

In the City of Sydney, the report said the number of venues grew by 1.8% to 4,872 in 2017, while overall sales also rose by 6.3%. The city’s night-time economy is now worth $4.05bn.

While food remained the strongest sector for the City of Sydney’s night-time economy, drink venues were booming in 2017, according to the report, which was commissioned by the Council of Capital City Lord Mayors and carried out by Ingenium Research said.

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“The greatest growth over this period was in the drink sub-sector, with increases in establishments (+4.9%), employment (+8.7%) and turnover (+6.5%), well above the NSW and national averages,” it said.

“This growth comes off the back of decline between 2014 and 2015 (-8%) following the introduction of the lockouts in February 2014.”

But the figures show the number of drink venues in 2017, at 574, is still below the 576 that the city boasted in 2014.

The report comes as Sydney lobbies the New South Wales government to wind back lockout laws for well-managed venues. The hospitality industry has recently pointed to a boom in small bars within the city, as drinking habits change after the introduction of the laws.

In Victoria, Melbourne has attempted to fill the gap, with the state government introducing a 24-hour train service in a bid to build the city’s reputation as a 24-hour city. The government also rejected lockout laws, which it said would be a “disaster” for the Melbourne’s “cultural and social fabric”.

But the “Measuring the Australian Night Time Economy 2016-17” report noted a reduction in drink venues in the City of Melbourne last year, with overall drink sales also falling 6%.

The number of night-time venues across all sectors also fell, but turnover increased, “suggesting larger establishments with higher turnover”, the report said.

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Melbourne’s $3.2bn night-time economy was heavily focused on food, with sales in that sector up 12% in 2017.

The lord mayor of Melbourne, Sally Capp, said the slowdown in the city’s boozers reflected broader trends.

“It’s particularly pleasing that drink sales are down given that we now have up to a million people visiting the city each day,” she said on Thursday.

The City of Brisbane, which dwarfs the other capital city local government areas in terms of size, also experienced growth in the number of night-time establishments, while the Gold Coast also saw its night-time economy increase in size. The number of drink venues, however, fell 7%.

In Perth, the report recorded a large decline in both employment (4%) and turnover (4.5%) within the city’s night-time economy, though the number of venues increased.

Turnover in Adelaide grew by 3% in 2017, despite a decrease in the number of venues, while the report said Hobart had also seen an boost to its night-time economy, which included a possible shift in the city’s after hours economy to a more “food focused approach”.

Canberra also saw a large rise in the number of venues, matched by job growth and increased sales.