Sydney suburbs see surge in nighttime economy as locals go out 80 nights a year

Nighttime spending in south-west and western Sydney is outpacing the eastern suburbs and inner west, underscoring the citywide trend of dining and entertainment hubs shifting west from the CBD.

As concerns about affordability and safety ease, Australians are heading out an average of 80 nights a year, a 15 per cent increase from 69 nights out in 2025. Sydney is also closing the gap on Melbourne as the nation’s top nighttime economy, 2025-26 card transaction data from Visa reveals.

Where Sydneysiders choose to spend money at night is changing too, highlighted by western Sydney’s growing influence in Australia’s nighttime economy.

Compared with the previous year, south-west Sydney jumped up eight spots in the Visa weighted rankings, which record all spending at night, such as at bars, pubs, and on entertainment, fast food, retail, and dining. Parramatta, Blacktown, and Sydney’s inner south-west also climbed one to two spots in the national ranking.

Visa Oceania’s group country manager Alan Machet said part of the reason nightlife had diversified beyond late-night drinking in the inner city was because of the increase in activities in suburbs where more people live and work.

But growth in the nighttime economy isn’t solely tied to western Sydney’s population growth.

“Probably the bigger part is coming from people choosing those areas that have better infrastructure, better transport solutions,” Machet said.

“We’ll see [places] where population growth is there, but you’re not seeing that translate [to nighttime spending] because the infrastructure isn’t keeping up with it. There isn’t the diversity of nighttime options that’s creating that vibrancy and excitement to go and try something.”

Sydney’s eastern suburbs and inner west have lagged, dropping eight and three ranks respectively. Dr Anna Edwards, research fellow at the University of Melbourne and an expert in the 24-hour economy, attributed this to many eastern suburbs residents preferring earlier lifestyles, which naturally shapes when and how people spend their money.

“They’re well known for their morning economy … it’s thriving in the morning as opposed to at night,” Edwards said, pointing to morning routines of wellness activities, run clubs and lifestyle habits.

These shifts in consumer behaviour did not emerge accidentally. It is the result of long-term investment in planning, public spaces and precinct activation making it easier and more appealing for people to head out after dark, Edwards said.

The state government has introduced policies making it easier for businesses to operate at night. Among these are live music incentives: venues can stay open for two hours longer, with an 80 per cent reduction in liquor licence fees if they offer live music and performances.

The so-called “vibrancy” laws have also included tearing up “no entertainment” clauses, restrictions on genres of music venues can play, as well as stopping single neighbour noise complaints from shutting down pubs and other licensed venues. The government’s 24-hour economy office found the $110 billion nighttime sector is in better shape than it had been for a decade after years of lockout laws, COVID lockdowns and cost-of-living pressures.

Visa’s research found small businesses were the backbone of a vibrant nighttime economy. This is especially true for one bustling nighttime hub at Canley Vale, a suburb in Sydney’s growing south-west.

Lang An is a Vietnamese-inspired street food and live entertainment hub open until midnight. When it’s not used for outdoor dining, live music, and karaoke nights, it is used for dance practice or kung fu training for kids during the day.

It sits within the broader Little Asia cultural district spearheaded by its chairman Anthony Nguyen, who intended Lang An to be a free third space.

“This is purely for community,” Nguyen, who grew up in the area, said. “I have so much pride in Canley Vale. I feel like Canley Vale has been left in the dark compared to Cabramatta and Canley Heights. We want to change the narrative that Canley Vale is boring, that there’s nothing here.”

The business environment (the conditions to allow businesses to thrive at night) is strong in Sydney, but the harbour city still lags Melbourne in one persistent area: vibrancy.

Vibrancy measures the number of people working, and the number of businesses trading at night. The more businesses open, the more options there are to spend time at them. The more options, the more people.

The 24-hour economy office also identified a lack of late-night transport options as one of three primary barriers to Sydneysiders going out, along with safety and affordability.

“I wouldn’t say it’s [24-hour public transport] number one, but it’s very close to the top in terms of what enables people to participate,” Edwards said.

While the government confirmed it was looking at 24-hour public transport for major events after a successful trial over the Mardi Gras weekend, it has not yet clarified what stage planning was at.

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