Pickleball over pisco sours: Sydney’s changing nightlife choices revealed

Sydney’s nightlife has diversified beyond a late-night drinking culture concentrated in the inner city – but high living costs, safety concerns and patchy public transport options are stopping people from hitting the town.

A report from the NSW government’s 24-hour economy office found the state’s $110 billion night-time sector was in better shape than it had been for a decade, largely due to the state government’s “vibrancy” agenda aimed at tackling fragmented governance, inconsistent regulation and a heavy reliance on drinking alcohol post-6pm.

The first State of the Night report warned the entertainment and hospitality industries were vulnerable to global uncertainty, surging operating costs, and higher interest rates, which were among economic factors hampering a full nightlife rebound, despite significant reforms to reverse the damage from lockout laws and the pandemic.

Arts, Music and Nighttime Economy Minister John Graham said the report, which will be provided to parliament, showed the state’s nightlife hotspots were growing in suburban and regional areas, and people were increasingly turning to cinemas, museums, and sporting activities, rather than a pub crawl or bar hop, to have fun after 6pm.

But he said a lack of disposable income for many revellers was holding the sector back.

“Conditions are tough, and that’s been underlined by the fact the Reserve Bank has just dropped an interest rate cluster bomb on the hospitality sector,” Graham said of the bank’s decision on Tuesday to lift interest rates for the first time since 2023.

“We’re not saying everything is rosy, it’s definitely not. But without this agenda, we would have gone backwards.

“The exciting thing is that, as things improve and there is a bit more money around, you will really see the changes we’ve made take effect and the sector really fly. I think it is good times ahead off the back of these changes, but we’re very clear – we’re not there yet.”

NSW 24-Hour Economy Commissioner Michael Rodrigues said the report, which will be completed yearly to show changing patterns and emerging trends in the state’s nightlife, highlighted that safety, affordability, and late-night transport options were some of the primary barriers to people in Sydney going out in the past year.

“Addressing these areas is not only about improving individual experiences – it underpins the resilience and sustainability of the night-time economy itself and is central to growing participation and vibrancy.”

The report reveals $15.5 billion was spent in person on the night-time economy in NSW in 2024-25. That was a drop of $1 billion from the previous year, while online spending increased by $3.5 billion in the same period.

The report also highlighted the growing diversity of the city’s nightlife, in areas beyond Sydney’s CBD, inner-east and inner-west. The number of food, drink and entertainment businesses grew by 6.4 per cent in central Sydney, which takes in Parramatta, Bankstown, Burwood and Hurstville, and by 4.2 per cent in western Sydney, around the future Western Sydney Airport

People were not only wining and dining. There had also been a 37 per cent surge in spending on cinemas and screen attractions, alongside an 18 per cent jump in spending on museums and heritage activities since 2023. The amount of money spent on sports and recreation had increased by 6 per cent in the same period.

House of Pickle chief executive Ollie Matthews last month opened a pickleball venue on top of the ICC Sydney in Darling Harbour, where he said the focus was mostly on exercise and social connection rather than alcohol.

“It’s been interesting seeing that shift; maybe the drinking doesn’t have to go away completely, but it’s a way you can get out and meet people without having eight beers at the pub,” Matthews said.

Graham said: “That’s exactly what we wanted to see. [Nightlife] is now about more places, more activities, a mix of age groups. That is safer and less risky, but it’s also exciting and about Sydney reaching its potential.”

The report also showed people in NSW made 149.2 million night-time public transport trips in the last financial year, while Opal tap-offs at night surged by 28.5 million, or 23.6 per cent, since 2023.

Graham said the government was looking at running 24-hour public transport for limited major events – similar to arrangements for New Year’s Eve – and “enhanced transport after dark in general” was “certainly a focus”.

The so-called vibrancy laws included tearing up “no entertainment” clauses, restrictions on what genres of music venues can play, as well as stopping single neighbour noise complaints from shutting down pubs and other licensed venues.

The government has also established Special Entertainment Precincts, which are spots designed to boost nightlife with extended trading hours and managed sound, in inner-west areas including Enmore Road, Enmore and Marrickville, with others popping up in Burwood, Fairfield, Canley Heights and Canley Vale.

Night Time Industries Association chief executive Mick Gibb said the $1 billion drop in in-person spending hurt operators, and government and industry needed to make it easier and more affordable for more people to get out at night, more often. He urged a trial of 24-hour public transport from key nightlife hubs.

“The focus for the government must now be on reducing the cost of doing business, developing co-ordinated audience campaigns that get people off the couch, fixing transport gaps, and ensuring policing consistency,” Gibb said.

“We’ve built the stages and fixed the regulations, but now we need to fill the seats. [We] need to work together to remind people why leaving the house matters, and make sure it’s an experience they want to repeat.”

The Morning Edition newsletter is our guide to the day’s most important stories, analysis and insights. Sign up here.