Sunday, January 11, 2026

The Night-Time Economy

Alazar Kebede

For decades, the night-time economy has been treated as a cultural add-on: something colourful, occasionally unruly, and largely peripheral to “serious” economic planning. Bars, clubs, theatres, late-night restaurants, music venues, transport, security, cleaning, and healthcare services have been seen as by-products of urban life rather than strategic assets. That view is no longer tenable. In an era of post-pandemic recovery, changing work patterns, and intense competition between cities, the night-time economy is not a luxury. It is an economic system in its own right, and one that requires intentional governance.

At its core, the night-time economy is about more than leisure. It encompasses employment, tourism, cultural production, public safety, logistics, and urban identity. In many cities, it employs between 5 and 10 percent of the workforce, disproportionately young people, migrants, artists, and those without access to traditional nine-to-five roles. These are not marginal jobs; they are entry points into the labour market and, for many, long-term careers. When the night-time economy falters, the social consequences are immediate: unemployment rises, informal activity increases, and city centres hollow out after dark.

The pandemic exposed just how fragile this ecosystem is. Overnight, venues were shuttered, supply chains collapsed, and skilled workers exited the sector en masse. While many businesses have since reopened, the underlying vulnerabilities remain. Rising rents, energy costs, staffing shortages, and restrictive licensing regimes continue to undermine viability. Yet policy responses are often fragmented, reactive, and moralistic focused on noise complaints, antisocial behaviour, or alcohol consumption rather than on economic resilience and urban planning.

This moral framing is a persistent problem. Night-time activity is too often discussed in terms of risk rather than value. Disorder, public intoxication, and safety are legitimate concerns, but they are management challenges, not reasons for neglect. Daytime economies also generate crime, congestion, and environmental impact; we address those through infrastructure, regulation, and design, not through curfews or disinvestment. The same logic should apply after dark.

Cities that understand this are already moving ahead. The introduction of night mayors, night-time commissions, and dedicated policy units in places such as London, Amsterdam, New York, and Sydney reflects a growing recognition that the night requires its own governance framework. These roles are not symbolic. When empowered, they coordinate between businesses, residents, transport authorities, police, and cultural institutions, aligning economic objectives with social outcomes. Crucially, they shift the conversation from “how do we control the night?” to “how do we make the night work?”

A functional night-time economy depends on infrastructure that many cities still lack. Reliable late-night public transport is not a luxury; it is a prerequisite for safety, accessibility, and workforce participation. Poor lighting, limited sanitation, and inadequate wayfinding make urban centres hostile after dark, particularly for women and older residents. These deficiencies are often cited as reasons to restrict night-time activity, when in reality they are reasons to invest in it.

There is also a cultural dimension that policymakers underestimate. Night-time venues are incubators of creativity. Music scenes, comedy, fashion, and culinary innovation rarely emerge from office parks operating between nine and five. They grow in clubs, basements, and informal spaces that allow experimentation and risk. When cities lose these spaces, priced out by development or regulated out of existence, they lose more than entertainment. They lose the soft power and distinctiveness that attract talent and visitors in the first place.

At the same time, the night-time economy must evolve. It cannot rely indefinitely on alcohol-centric models that exclude families, older residents, and those who do not drink. A more diverse night means museums open late, libraries hosting evening programmes, cafés replacing some bars, and public spaces designed for low-cost, low-risk socialising. This diversification is not only socially inclusive; it is economically prudent, spreading demand across different demographics and time slots.

Ultimately, the question is not whether cities can afford to invest in the night-time economy, but whether they can afford not to. An underdeveloped night leads to deserted streets, reduced footfall, higher policing costs, and a diminished sense of safety. A well-managed night generates jobs, tax revenue, cultural vibrancy, and global competitiveness.

Treating the night-time economy as an afterthought is a policy failure rooted in outdated assumptions about work, leisure, and urban life. As cities grapple with remote working, declining high streets, and the need to reimagine public space, the hours after dark offer both a challenge and an opportunity. The choice is clear: continue to regulate the night as a problem to be contained or recognise it as an economic and cultural engine worth designing, supporting, and protecting.

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