Melbourne Lord Mayor Nick Reece was celebrating after a new national report showed that the city’s after-dark economy is the most buoyant in the country.
It showed that almost 180 new night time venues were launched between 2024 and 2025 in the Victorian capital. Near-3,000 new jobs came into being, six times faster than the national average.
Melburnians were also coming out after dark both on weekends and weekdays. The city’s leisure and entertainment category grew at twice the national rate.
In total, the Night Time Economy (NTE) pumped out more than $5.1 billion in sales between 2024-25 – the strongest growth rate of any capital city.
The NTE was boosted by a blockbuster of events which attracted more than 4.3 million visitors during 2024-25.
“Melbourne’s mojo is running red hot at the moment,” Mayor Reece said. “Recently, we were named best city in the world, (now) we're recognised as home to Australia’s fastest-growing night-time economy.
“That reflects a city full of people who continue to back Melbourne. They're embracing everything our city has to offer after dark – from the latest dining hotspots and night markets to uniquely Melbourne events that bring people together.”
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He added: “It also reflects the changes we're seeing in consumer habits, particularly among young people, who are more keen on matcha than margaritas and prefer hot pot over pints.”
On an Australia-wide freeze-frame, the latest Measuring The Night-time Economy Report 2026, released through The Council of Capital City Lord Mayors, showed that the night time economy is in a stronger position in most aspects than before.
It boasts record numbers of businesses and jobs, and sales turnover at an all-time high. The number of its businesses grew 18% to 136,121. The sector is now worth $196 billion, up 4% on last year. It employs 1.14 million, a rise of 1.4%.
The figures also indicated how inflation and cost of living have also been biting, with cities and states growing and others contracting. But in real terms, the sector is “largely holding its value since 2023,” it was reported.
Different Face
The national NTE has taken a different face since re-emerging from pandemic restrictions.
Food is the main drawing power, followed by leisure and entertainment which are becoming more diverse in their offerings. Drinking venues, once the poster kids of all things after dark, are in decline in most states.
“Australia’s night-time economy continues to evolve in response to changing consumer behaviour, economic pressures, work patterns and social trends,” said the report.
“Across Australia, businesses and cities are adapting to growing demand for social connection, experience-led spending, wellness-focused activity and more flexible patterns of activity across the full day and night.”
Of the new 2,441 venues (up 1.8%), 1,685 were food businesses. Leisure & entertainment grew by 2% to 868 businesses.
According to the report, “Drink businesses declined by 112 (-1.2%), marking the second consecutive year of losses.”
The exception was Queensland where drink businesses increased (+3%) and the Northern Territory and Australian Capital Territory saw no change. But Canberra has almost 30% more nightspots than before the pandemic.
Dividing up the $196 billion sales turnover, the biggest surge of 5% came from leisure & entertainment. The food sector made up 4%. Drinks venues made up 1.9%.
Pushing the growth is Gen Z’s focus on wanting experiences and person-to-person social interaction.
The mayors’ report cites promoter Live Nation’s 2026 Love Songs stats that 86% want experiences that make them feel part of something bigger and 92% think that meeting new people at gigs is “cool”.
As a result, there is a growing call for “competitive socialising” venues such as arcade bars, mini golf, bowling, and immersive gaming concepts, “with operators increasingly activating vacant spaces and extending activity into the evening.”
Shopping centres are increasingly evolving into lifestyle destinations focused on dining, entertainment and social experiences, with food and beverage uses continuing to expand as major drivers of visitation and dwell times.
In terms of employment, the 16,000 new jobs were scattered. Victoria, for instance, surged while NSW declined.
“Food jobs increased by 18,065 (+3%) to over 730,870 jobs. Leisure & entertainment employment fell by 4,100 (-1.4%), relinquishing last year’s strong gains, particularly in NSW.
“Drink employment grew modestly (+1.7% / +2,075) despite declining venue numbers.”
Thursday New Friday
One trend was that “Thursday is the new Friday.”
The report went on to explain: “Thursday evenings (6pm to 9pm) are now the peak trading night in 17 cities – only Adelaide, Hobart and Perth peak on a Friday with Melbourne strong on both nights.
“In Maribyrnong (in Melbourne) and Penrith (in Sydney), 72% of Core NTE businesses trade on Thursday evening, reflecting a mid-week peak shaped by hospitality and service-sector demand.
“While the Friday-Saturday weekend is still strong after 9pm, it is no longer the sole anchor of evening trade.”
Early night (9 pm to midnight) trading was busiest on Friday and Saturday nights, particularly in Adelaide, Yarra, Melbourne, and Sydney. Close to half traded through to midnight on peak night.
Brisbane, Darwin, and Sydney’s Hornsby and Willoughby showed the lowest activity on a weekly average, tapering off at 9pm.
Trading between midnight and 3 am was highest on Friday and Saturday nights. Adelaide led the way with 18% to 20% of its NTE businesses open after midnight on weekends. Melbourne was second, with 18% to 20% of its businesses.
On the other end of the scale. Hobart, Launceston, and Willoughby recorded the lowest late night activity, with fewer than 9% of businesses open after midnight even on peak nights.
Australians’ change in lifestyle, experiences and work are seeing the rise of the early morning economy (3am to 6am) with gyms, cafés, and service providers. This is especially in Brisbane (20% of businesses) and Penrith, Newcastle, and Parramatta at 13% to 15%.
Hospitality remains the largest employer. But a larger amount of Australians work at night in healthcare, transport, education, mining, and professional services,
Another aspect for the growth: “Cities are planning more actively for life after dark
“Councils are increasingly embedding night-time and 24-hour economy priorities into planning, cultural programming, public space improvements and business support initiatives as cities adapt to changing patterns of activity across the full day and night.”
This piece of content has been assisted by the Australian Government through Music Australia and Creative Australia, its arts funding and advisory body
