It is well known that New York City was given the nickname of the "City That Never Sleeps" all the way back in 1898. But as global economies have continued to modernise since then, 24-hour economies have been established in many cities and are continuing to grow in others. London, Sydney, Berlin and Tokyo are amongst the many cities which are recognised for their vibrant nightlife and the economy it brings.
But what is the night-time economy? It is a term to describe the wide variety of activities and industries including entertainment, hospitality, transportation and security which take place in cities and towns between the hours of 6pm and 6am. Whilst on first glance, you may not think this would be a large percentage of the economy, it was estimated in 2023 that in the UK, 1 in 9 people are employed as part of the night-time economy and in some regions of the UK, approximately 57% of the people in employment are working in an industry involved in or related to the night-time economy 1 & 2. In the UK, it has been estimated that in 2022, the night-time economy contributed 4.1% of the GDP of the UK and revenue of £93.7 billion 3. Given the scale of employment and income involved in this sector, why is growth not a priority for most cities?
One of the issues with the growth of a night-time economy is that, in many cities there is a severe lack of infrastructure and planning for both those working in and those enjoying the night-time economy industries. The available transportation can be lacking, with public transport including buses, trams or subways running a minimal night-time service or no service at all. As such, there is a requirement for the local authorities and planning authorities to invest in appropriate transport links to allow workers to travel to their place of employment in a safe and efficient manner.
In addition, there must be communication between local authorities, businesses, police, neighbourhood groups and any other relevant stake holders to understand the importance of the night-time economy in the growth and development of a city while recognising that there must be safeguards put in place to restrict the impact caused by this growth, including management of noise levels in residential areas and the safety of all those involved. Some cities (including New York, Paris, Edinburgh and others) have appointed night mayors / tsars or special taskforces to assist in this growth opportunity and are working with key figures from all industries to determine the best way forward for all involved and publicise the benefits of such an economy. For example, London has just announced (as of 4 February 2025) that they will introduce a Night-time Taskforce replacing their former Night Czar to help support the capital's night life and take the views of various experts on issues facing the industries involved in the night-time economy and to help stimulate growth. 4
Arguably, in a world where people are working in more flexible patterns and are more likely to overlap with the night-time economy in both a professional or leisure setting, it can only make sense for cities to embrace the economy and invest in this to make it functional for all parties involved.
If you have any queries about this article, please contact Louise Clark
References
1 & 2:
https://www.ndml.co.uk/articles/the-night-time-economy-report-2023/
https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/articles/thenighttimeeconomyuk/2022#the-night-time-economy-data
3: https://www.ndml.co.uk/articles/the-night-time-economy-report-2023/
4: https://www.london.gov.uk/media-centre/mayors-press-release/Mayor-launches-independent-new-Nightlife-Taskforce-to-help-support-capital%E2%80%99s-life-at-night
