Free public transport push to ‘bring people back into the city’ and boost CBD spending

The decision to temporarily waive public transport fees last year sparked a surge in spending across Sydney’s CBD, prompting calls for the NSW government to introduce more free travel during public holidays and major events.

New data suggests the government’s 12-day fare-free period in April 2022, delivered as an apology amid ongoing industrial action across the city’s train network, resulted in a spike in both trips around Sydney and consumer spending.

Business NSW is calling on the government to introduce more fare-free days during public holidays.Credit: Flavio Brancaleone

Business NSW compiled Mastercard and Opal data from the 12-day April period, which showed a 6 per cent increase in spending across the CBD compared with the previous week and a 24 per cent increase from previous public holiday periods.

The lobby group is calling on the state government to waive fares for WorldPride 2023 and major public holiday periods.

Business Sydney executive director Paul Nicolaou said the financial data was compelling enough to encourage the state government to adopt fare-free periods for public holidays including Easter, Anzac Day and the Christmas period.

“The results speak for themselves, it does prove that any initiative to bring people back into the city using public transport has been a huge success. We’re very keen for the government to continue this initiative,” he said.

Nicolaou pointed to Melbourne, where trams are free in the centre of the CBD, and said Sydney should consider adopting the measure for its own light rail.

“Eventually, I’d like to see at least the light rail from Circular Quay all the way up to Surry Hills be a free trip for people because I think that would be a great bonus for tourists,” he said.

“I think it would be a great bonus for the city, especially during major events.”

The report found a 35 per cent increase in spending across department stores, arts and entertainment venues as well as a 20 per cent increase at restaurants and cafes during last year’s fare-free period.

Making the light rail free would be a great bonus for tourists, says Business Sydney executive director Paul Nicolaou.Credit: Sam Mooy

The report also found an 11 per cent increase in public transport trips for the 2022 fare-free initiative compared with the pre-trial period, or a 35 per cent increase if the “avoided decline” of the public holiday period was factored in.

Nicolaou said the government should consider permanent fare-free periods across all public transport for the Easter to Anzac Day and Christmas to New Year periods, and free light rail for this month’s WorldPride event.

The Herald last year reported public transport trips during off-peak periods between 9am and 4pm increased by 13 per cent on a weekday, while daytime travel surged by almost 30 per cent on a Sunday, and by 54 per cent on a Saturday.

Ferries had the biggest increase, with an extra 180,000 trips taken across Sydney waterways over the 12-day period, a 120 per cent increase.

The NSW government last year estimated the daily cost of fare-free days on the city’s train network was $1.5 million. That figure was based on about 886,000 trips being taken each weekday.

Transport Minister David Elliott said at the time he would consider making the case to Treasury for a repeat of the free travel period if the business community believed a surge in economic activity had made up for the forfeited fares.

Elliott said it was clear that free public transport was a “great economic lever” in assisting in the recovery from the pandemic. He was contacted for comment on Tuesday.

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