If you thought the CBD was dead after dark, think again

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This was published 1 year ago

If you thought the CBD was dead after dark, think again

By Michael Koziol

Forget everything you’ve been told about the decline of the CBD. According to data analytics and hospitality operators, it is going gangbusters – just in a different timeslot.

While work-related visits on weekdays still lag pre-pandemic levels, punters are pouring into the city at night, especially on weekends, in higher numbers than before COVID-19.

Said Karl Schlothauer, owner of Stitch Bar on York Street, who is now opening on Sunday nights too: “Saturday nights are doing 30 to 40 per cent more than what they did pre-COVID [and] Fridays are getting back to where they used to be.

“Our kitchen stays open a little bit later now during the week and past midnight on the weekends. There’s definitely demand for it.”

Schlothauer’s comments reflect mobility data collected by DSpark and released by the Tourism and Transport Forum last month that indicate Sydney’s CBD is doing better on weekends than during the week, and better at night than pre-COVID.

This phenomenon was evident in all five state capitals, but was most pronounced in Sydney. The biggest increase in visitation was in the late evening and early hours of the morning, peaking at 116 per cent of pre-pandemic levels.

Data analytics firm DSpark measured CBD visitation - based on phone network activity - in the Sydney CBD. The data was collected from the period April 1, 2022 to 31 July, 2022 compared to the same period in 2019.

Data analytics firm DSpark measured CBD visitation - based on phone network activity - in the Sydney CBD. The data was collected from the period April 1, 2022 to 31 July, 2022 compared to the same period in 2019.Credit: DSpark / Tourism and Transport Forum

The DSpark data was collected from phone network signals from April 1 to July 31, and is compared to the same period in 2019. The company said the data excluded international visitors and people who live and work in the CBD.

It is almost certain CBD attendance has only increased since July, given the retreat of COVID, the return of tourism and a significant improvement in the weather.

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Solotel chief executive Elliot Solomon, whose CBD portfolio includes Opera Bar, Goros and the Edinburgh Castle Hotel, said weekends were “very strong” and that Goros, a late-night venue near Central, had never been busier.

Also aiding the CBD’s nighttime recovery is the absence of 1.30am lockout laws, which were repealed in January 2020, shortly before the pandemic began. New precincts have also come into their own, such as Barangaroo and Darling Square, while the Ivy precinct and “Thai Town” near the Capitol Theatre remain reliable late-night destinations.

Diners on Ash Street in the Sydney CBD on Thursday night.

Diners on Ash Street in the Sydney CBD on Thursday night.Credit: Flavio Brancaleone

But it’s not all upside; the decline in regular after-work drinks, especially on Fridays, and the demise of the Friday long lunch, are ongoing challenges for hospitality businesses, even if busier Thursdays make up for some of those losses.

Solomon said: “Mondays are quieter, Fridays are not what they were before. There’s more of a destinational crowd that comes to the city on Fridays now. You don’t have that 5pm to 7pm ‘sit in the bars’ like they used to.”

Inflation is also biting. Expensive cocktails are going the way of low interest rates and drinkers are returning to simple, cheaper beers and wines, according to some bartenders.

Steve Speed, publican at the Fortune of War in the Rocks, said the return of cruise ships had helped immensely, as had the city’s embrace of al fresco drinking and dining.

Punters regularly queue for blocks for the Ivy’s massive Thursday night party.

Punters regularly queue for blocks for the Ivy’s massive Thursday night party.Credit: Flavio Brancaleone

“If the weather’s kind to us, we’re pretty busy seven days [a week],” he said. “The confidence is back. People aren’t concerned about venturing out in COVID; they’re just out with a vengeance.”

Speed said it was vital the city retained its more liberal approach to outdoor dining; the on-street dining program and the waiving of outdoor dining fees are both due to expire next year.

The state government’s 24-Hour Economy commissioner Michael Rodrigues said there was strong anecdotal evidence and data to show people were “flocking back to the CBD, particularly at night”.

He said the number of new venues opening in the city indicated business and consumer confidence was high.

Dancing outside Squire’s Landing at Campbell Cove.

Dancing outside Squire’s Landing at Campbell Cove.Credit: Flavio Brancaleone

“What’s encouraging is seeing different tribes of people now using the CBD,” Rodrigues said.

“It’s not just office workers going out for a drink or a meal at the end of the day - although they are returning – it’s a whole range of people making the positive decision to go out into the city at night. That marks a change in behaviour since the pandemic.”

Data provided by his office shows the number of events in the City of Sydney is ramping up into summer. There were 51 Ticketmaster events listed in October; there are 66 for this month and 68 in December.

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