I always hate to be the bearer of bad news, but for those working in Australian’s entertainment and nightlife industry: I’m afraid I’m doing just that.
According to projections by Yahoo! finance, the nightclub industry is listed as one of the major ones “set to fall” this year. Coming in at fourth out of the top five industries, this shouldn’t come as too much of a surprise to those in Australia, with the industry suffering a tough few years due to cases of lockout laws and violence which have severely hampered the ability of nightclubs to operate.
From the study itself which lists a decline from 2015’s $1,293.8 (in millions), to $1,256.9 this coming year.:
According to IBISWorld analysts, the nightclubs industry has had a tough couple of years. Industry revenue is expected to decline by 2.9 percent in 2015-16, following sluggish growth of 0.3 per cent in 2014-15. This is in contrast to the strong industry growth seen in the years 2010-11 through 2013-14. Weaker growth has largely been due to increased industry regulation and decreasing alcohol consumption among younger demographics.
This incoming decline of the nightclub industry in Australia seems to coincide with the implementation of the “lockout laws” in Sydney first proposed early 2014 which set last call at 3 AM and lockouts at 1:30 AM. While small bars (capped at 60), restaurants, and tourism accommodation establishments are exempt from the 3 AM last call rule, hotels, registered clubs, nightclubs, and licenced karaoke bars find themselves on the other side. Venues currently licensed to stay open after 3am can do so without alcohol service. What comes as a huge surprise to us is the decrease in alcohol consumption, especially in Australia, which is well known for prolific substance abuse.