Canterbury-Bankstown: Ramadan Night Markets running costs skyrocket to $3m

Australia’s largest Ramadan street festival could become “unsustainable” to run after rising attendance levels left a Sydney council $2m out of pocket.

Haldon Street in Lakemba is closed off and markets are held on the street from sundown until 3am during Ramadan. Picture: Damian Shaw

Australia’s largest Ramadan street festival could become “unsustainable” to run after the Lakemba event’s rising attendance levels created “significant costs and challenges”, leaving a council $2m out of pocket.

Canterbury-Bankstown Council, which manages the annual event, will table a report at Tuesday’s council meeting to discuss the “financial sustainability” of the markets – now the second-largest event in the country behind Vivid – which drew crowds of 1.7 million people this year.

It cost just over $3m to run the markets in 2024 – more than $1m over the projected budget due to an “unexpected turnout” of 250,000 more visitors than last year.

People visit Ramadan Night Lakemba on March 30, 2024. Picture: Roni Bintang

Council planners state an additional $1.1m was spent on a “significantly increased level of resources and costs” to cope with the event’s increased popularity, including additional security and traffic control in the wider Lakemba area.

A total of $875,395 was dedicated to staff overtime and expenses, $658,102 for security, $685,361 for traffic and transport and $315,884 for extended police presence at the event.

Despite the $3m expenditure, council only clawed back $973,626 from grants, sponsors and associated fees and charges.

Council planners said the $3m price tag was a “huge increase” from previous years and was “unsustainable” without changes to the operating model of the event and financial backing of other levels of government.

Tarak Alawad (left) and a friend working their knafeh stall at Ramadan Night Markets. Picture: Kirsten Jelinek

“Given council’s balanced budget, sourcing/funding for the additional cost has been somewhat challenging,” council planners said.

Following a review of the budget, the council used funds from its roads repairs and maintenance budgets following a $10m grant from the NSW government as a “one-off saving for council” to cover the event costs.

A report has further recommended for council to seek additional NSW Government funding for the event and endorse the running of the event to continue every night during Ramadan – expect for one night to be dedicated to public prayers and a street-based Iftar dinner.

Stallholders at the Lakemba night markets. Picture by Damian Shaw

Owner of the murtabak chicken stall Rahamat Ullah (pictured left) at the Ramadan Night Markets. Picture: Kirsten Jelinek.

A further recommendation is for the council to investigate the feasibility and costs with the placement of all stalls on Haldon St in a “defined geographical placement” with road closures at surrounding Gilles, Oneata, and The Boulevard roads.

A NSW Government spokesman said Canterbury-Bankstown Council still had the opportunity to receive funding from the Stronger Together major festival local council grant program when applications reopen in October.

“The NSW Government is currently considering funding for the Ramadan Night Markets and other important cultural and religious events,” the spokesman said.

This follows Canterbury-Bankstown mayor Bilal El-Hayek revealing the council would seek additional funding after the event had grown from a single smoky BBQ into a global tourist attraction.

Island Dreams Cafe owner Alimah Bilda at the Ramadan Night Markets. Picture: Kirsten Jelinek

“We did receive a $1m grant over two years from the state government but that has now ended, and we are in the process of trying to secure more funding,” Mr El-Hayek said.

“It is quite clear that the event has outgrown the original intention and it is time for a rethink and a review on how it operates.”

Mr El-Hayek floated ideas during a previous mayoral minute, including exploring a private operator to run the event with council having oversight and a rethink of hours and days of operation, the number of stall holders and where they are located.