Rail strikes sent Sydney’s late-night economy to sleep

New data has revealed the shocking impact of Sydney’s train strikes on hospitality businesses during the summer peak.

The rail unions who caused havoc for Sydney’s train network for months on end last year sent the city’s night-time economy to sleep during the peak summer period.

A damning industry report has now raised alarm bells for late-night venues during the cold winter months, when a court-ordered prohibition on industrial action runs out.

The rail chaos coupled with increasing cost of living pressures have put hospitality operators on the back foot as they head into the colder months.

The Daily Telegraph can reveal that the number of “unique” visitors going to popular night-life spots dropped across the board from October to December last year compared to the year before.

However, a Night Time Industries Association Insights Report reveals the number of actual visits increased in each area – showing that the same people were making more frequent visits to areas close to home.

“Train disruptions” messages have become an all-too-familiar sight for Sydney commuters. Picture: Supplied.

Enmore Road’s late-night hub had the largest decline in unique visitor numbers, dropping more than 16 per cent compared in October to December compared to the same time in 2023.

The data shows that people faced with public transport uncertainty were choosing to go out closer to home.

In Kings Cross, visitors from neighbouring suburbs such as Elizabeth Bay, Woolloomooloo and Rushcutters Bay outweighed visitors from other areas, compared to the prior quarter.

The number of “unique” visitors going to popular night-life spots dropped across the board from October to December last year in part because of train strikes. Picture: NewsWire / John Appleyard

Cost of living pressures were also causing people to spend less when on a night out; average weekly spending on food and beverages in the Oxford Street East precinct dropped from $212 to $188.

The biggest drops in visitation rates was in people earning between $80,000 and $149,999 annually.

Some areas have experienced an almost three per cent drop in visits from people in that income bracket, indicating mortgage stress was cutting into money available for late-night food and fun.

Enmore’s special entertainment precinct, near The Bank in Newtown, suffered a 16 per cent drop in unique visitors compared to last year. Picture: Rohan Kelly

“When people feel like they can’t get home safely or affordably they make the call to stay home instead,” NTIA CEO Mick Gibb said.

“To have the type of night time economy that supports business growth and patrons having a fun, safe experience we need a functioning public transport network,” he said.

Mr Gibb said industry needs certainty that chaos on the rail network will not resume when a court-ordered hiatus on industrial action runs out.

Duty Manager and Bar Tender Adam Tabacchi and Bartender Emily McCaig at The Bank in Newtown, which was impacted by a slowdown in trade during the rail chaos. Picture: Rohan Kelly

“The last thing night time economy businesses can handle is another blow to trade because the trains won’t run,” he said.

Solotel Chief Operating Officer Ben Stephens said the rail strikes where a double-whammy, impacting patrons and staffing.

“The impact of industrial action like the recent train strikes on hospitality businesses is significant.

“It doesn’t just discourage people from going out, it directly affects our operations – be it through rostering and the ability to get supplies.

“The night-time economy relies on a functioning transport system and without it, businesses, workers, and the broader economy all take a hit.”

Originally published as Rail strikes sent Sydney’s late-night economy to sleep