Sydney is missing out on about $16 billion a year because its night-time economy is underdeveloped.

Analysis by Deloitte Access Economics has found economic activity after dark in Sydney is now worth $27 billion a year and supports more than 230,000 jobs. But it could be far bigger.

The report says growing the night-time economy is about much more than pubs and clubs. Credit:Janie Barrett

The report says the night-time economy makes up 3.8 per cent of Australia’s economy, well short of 6 per cent in the United Kingdom. That points to considerable potential for Sydney.

"If we aimed for 6 per cent, and nurtured and supported night-time infrastructure and activities more effectively, we estimate the annual value of Sydney’s night-time economy could be more than $43 billion across increased spending, and more employment and tourism," says the report's co-author and Deloitte Access Economics partner, Kathryn Matthews.