Beyond the headlines: The real state of Hobart’s night economy

The night-time economy figures presented by Council last night need to be read with a sharper eye:

A headline figure showing growth over 15 years may sound impressive at first glance. But when that growth is averaged across the full period, the picture is far less convincing.

Using Council’s stated figure that turnover in Hobart’s core night-time economy grew by 42.3 per cent between 2009 and 2024, that represents only about 2.4 per cent compound annual growth.

That is not a boom. It is modest nominal growth over a long period.

The more important question is whether that growth has kept pace with the actual costs faced by businesses and households. On that test, the picture is concerning.

Over broadly the same period, Hobart CPI rose by about 48.7 per cent. Tasmanian wages rose by about 53.7 per cent. That means the stated turnover growth in the night-time economy appears to have fallen behind inflation by about 6.4 percentage points, and behind wage growth by about 11.4 percentage points.

That is the real issue.

A business can have more dollars going through the till and still be worse off if rent, wages, food, power, insurance, compliance and finance costs have risen faster. Turnover is not profit. Activity is not viability.

This is why it is not enough to say the night-time economy has grown. We need to know whether it has grown in real terms. We need to know whether margins have improved or deteriorated. We need to know whether businesses are more resilient, or simply working harder to stand still.

The post-COVID period also needs to be examined separately. The past five years have not been normal years. Hospitality has faced lockdown recovery, labour shortages, rising interest rates, food inflation, power costs, insurance pressure, high rents, and changed consumer behaviour.

At the same time, households are under pressure. Many people are spending more on rent, groceries, power and transport, leaving less for a night out. For many families, discretionary spending has been quietly squeezed out of the weekly budget.

This is also why the conversation should not be reduced to a simplistic fight over bike lanes. Traffic, parking, public transport and access all matter. They affect whether people feel coming into the city is easy or too hard. But the deeper question is how we make Hobart worth coming into again.

The couch has become one of the city’s biggest competitors. Streaming, delivery apps and staying home have changed the culture of the evening. A night in may feel cheaper, easier and warmer, but it cannot replace the value of human connection. Pubs, cafes, restaurants, music venues and small bars are not just commercial spaces. They are places where people gather, talk, listen, celebrate, commiserate and belong. A healthy night-time economy is part of a healthy city.

If Hobart wants a stronger night-time economy, we need a strategy based on real numbers, not comforting headlines. That means measuring real turnover after inflation, wage pressure, business survival, employment, closures, rents, costs, safety, accessibility, events, live music and consumer confidence.

The goal should not be to pretend everything is thriving.

The goal should be to understand what is really happening, and then rebuild Hobart as a city people want to come into after dark: safe, welcoming, affordable, lively and connected.