Speaking at the Night Time Industries Association’s (NTIA) Night Time Economy Summit yesterday (9 February), Turnham said the industry was impacted more severely during the pandemic compared to other sectors due to extended closures and is now at the same level of profitability as it was in 2014.
Creative integrity
While the full impact of the cost of living crisis is yet to be measured, Turnham said that overall consumer spend on the night time economy has continued to decline, resulting in a loss of ability for businesses to invest in recovery, whether through refurbishments or marketing.
NTIA CEO Michael Kill added that some statistics suggest a 13% contraction of independent SMEs since the beginning of the pandemic.
“The night time economy is the biggest employer of under-30s,” he said. “We have to ensure we protect creatives and independents that are vitally important in the creative integrity of high streets.”
He also called out the importance of bringing young people into decision-making roles surrounding licensing and other issues that affect the night time economy.
Key driver
This comes as a number of trade bodies recently warned there would be further pub closures if the Government doesn’t step in to help businesses battle ‘devastating energy costs’.
Additionally, a flash poll from the NTIA last month revealed 82% of night-time economy firms could be under threat as the new Energy Relief Scheme from the Government will have no impact on them.
However, despite current challenges, Turnham said that closures have not been as severe as feared.
“We lost about 1% of the sector – not as many businesses as predicted,” he said. “After the last recession, the night time economy was a key driver of recovery. It outperformed the wider economy in terms of job creation, which has now recovered.”
