The data from the latest Night-Time Economy Market Monitor from CGA by NIQ and the Night Time Industries Association (NTIA) also showed particular resilience in bars where numbers has risen by 7.6% since March last year.
The growth, equivalent to around seven net new opening a week, has been driven by interest in experience-based nights out such as competitive socialising and themed bars.
Some of these bars have succeeded nightclubs, where numbers have fallen by a third (33.8%) since March 2020.
The night-time economy has also been boosted by a rise in ‘cultural’ licensed venues including cinemas, theatres and arenas where figures have increased by 4.5% in the past 12 months, the monitor revealed.
However, the sector’s recovery from Covid restrictions is compromised by additional costs, which came into force in April including employee costs.
A recent survey of more than 500 nightlife businesses by the NTIA found four in 10 (40%) expected to closure within the next six months without urgent financial support.
Urgent action needed
CGA by NIQ director of hospitality operators and food EMEA Karl Chessell said: “These numbers show how hard businesses in late-night hospitality have worked to build back from the turmoil of Covid-19.
“They have also adapted very well to consumers’ changing leisure needs and are shaping a new and dynamic night-time economy.
“However, extra costs and ongoing inflation, alongside hesitant consumer spending mean many businesses’ cash reserve are rapidly being depleted.
“Urgent and targeted action is needed to tackle this jeopardy and ensure hospitality can help kickstart an economic revival.”
NTIA CEO Michael Kill called on the Government for “urgent intervention” to prevent further closures in the sector.
Remarkably resilient sector
He added: “While our sector is remarkably resilient - modest figures of growth should not be mistaken for recovery.
“What we are seeing is the barest flicker of life after five years of near collapse.
“A 5% growth in nightclubs sounds positive until you remember we’ve lost 34% of them since 2020.
“The reality is the night-time economy remains in a deep crisis, influenced in part by recent policy decisions such as those outlined in the Autumn Budget.
“Without urgent intervention, the small signs of resilience we’re seeing now will be put out early and disproportionately so on independent venues deeply cherished by and so valuable to communities.
“It is essential the Government considers structural changes - from public transport and safety to the additional tax burdens introduced this April.
“Appetite for meaningful, shared cultural and social experiences is strong. It’s up to policymakers and industry leaders alike to ensure the infrastructure exists to support it.”
