The City of Sydney has blamed the lockout laws for new figures that show nearly 500,000 fewer young people have visited the city each year since the controversial policy was introduced.

The parliamentary inquiry into Sydney's night-time economy has been inundated with almost 800 submissions, ranging from health professionals to venue owners and music groups.

The parliamentary inquiry will scrutinise the impact of the city's lock-out laws on the late-night economy. Credit:Steve Lunam

The City of Sydney said in its submission the laws had "significant negative impacts on Sydney's cultural life, our reputation as a global city, our businesses and our tourism industry".

"The [current policy] approach has led to significant unintended negative impacts such as a retraction of the economy by 7.1 per cent, with a potential opportunity cost of 2202 jobs and $1.4 billion in turnover," the council's submission said.