Cities everywhere are under pressure to do more with less. The buildings, streets, venues and transport systems that power daytime life can often sit idle once the sun sets. Yet the nighttime economy offers a way to extend the productivity of those assets, supporting growth without the cost of new infrastructure.
Cities around the world are embracing a 24-hour mindset, from New York’s late-night retail and always-on metro to Berlin’s cultural districts to Tokyo’s night markets. Others are just beginning to tap into this opportunity. What unites them is a global spending shift: as payments become increasingly digital and seamless, commerce is no longer tethered to traditional business hours.
This shift isn’t confined to online shopping or daytime peaks. It’s happening after dark, in the rapidly evolving nighttime economies that fuel jobs, services and community life. The question is how to harness this energy safely and inclusively to drive growth.
Australia offers an instructive case study. Visa’s new Nighttime Economy Index — the first national benchmark of its kind — reveals what happens when a country measures and manages its after-hours economy with intent. The insights hold relevance far beyond Australia’s borders.
Why measure the nighttime economy?
For too long, after-dark activity has been underappreciated in economic planning. Yet, as Visa’s research shows, nearly half of Australians (49 percent) go out at least once a week, rising to almost three-quarters of Gen Z. On average, Australians go out six nights a month, and four in 10 see nightlife as essential, not optional. One in three say it gives them a sense of community.
Importantly, the nighttime economy is more than pubs and parties. It encompasses health and care workers, logistics, retail and cultural events. It’s the Uber driver, the nurse, the musician and the family squeezing in errands after work. Cities that use their assets, infrastructure and time efficiently across the full 24-hour cycle gain an edge in liveability and competitiveness.
Data-driven insights for a 24-hour nation
The Visa Nighttime Economy Index ranks more than 80 metropolitan, regional and suburban areas on spend, governance, vibrancy and safety/accessibility. It draws on Visa card transaction data, official statistics, transport timetables and safety indicators to provide a comprehensive snapshot of life after dark.
Key findings:
Melbourne Inner tops the nation (index score 82.0), with the highest share of transactions at night, the largest number of nighttime workers and merchants, excellent public transport and the lowest nighttime traffic fatalities.
Sydney City and Inner South ranks second (74.3), outperforming Melbourne on total night spend but edged out on vibrancy.
New South Wales (NSW) dominates the top 20, fuelled by targeted investment, precinct activation and strong governance — 11 of the top 20 locations are in Sydney metro.
Regional and suburban centres like Newcastle, Lakemba and Penrith rival capital precincts, proving that vibrant nighttime economies aren’t just a big-city story.
The approach could be applied anywhere cities want to benchmark liveability, safety and growth across the 24-hour cycle.
What’s driving the nighttime economy?
- Changing consumer habits: Hybrid work and flexible schedules are shifting peak times. Businesses that adapt trading hours — later or earlier openings, targeted extensions — are best placed to capture demand.
- Beyond bars: Demand is rising for evening retail, arts, cultural events and family-friendly options. Food is central: 76 percent of Australians prefer eating out at night, followed by movies (46 percent) and night markets (42 percent). More than half want to see more night markets and festivals.
- Affordability and safety: Cost is the biggest barrier (66 percent), followed by safety (40 percent). Eight in 10 Australians rate safety as critical, and more than half want more low-cost options. Investment in well-lit streets and late-night transport directly supports participation.
- Local vibrancy: Many prefer to stay local (38 percent) when going out at night, though younger generations are more adventurous. Nearly half (47 percent) believe their local nightlife needs more investment, and three in four would go out more often if it were more vibrant and inclusive.
These drivers echo global consumer trends. From New York to Seoul, people want accessible, affordable and safe ways to connect after hours.
Policy and partnership
Australia is emerging as a global leader in nighttime economy governance. NSW’s Office of the 24-Hour Economy Commissioner, Queensland’s Nightlife Economy Commissioner and the Australian Capital Territory’s dedicated minister are setting new benchmarks. Coordinated policy, targeted investment and precinct activation are turning after-dark activity into a strategic asset.
But there’s room to grow. The Index highlights untapped potential in cities like Adelaide, Perth, Darwin and Hobart, where stronger governance, transport and safety could unlock new value. Other markets can take note: targeted leadership and data-led planning make a measurable difference.
Enabling the future of nighttime commerce
As the world’s leading payments network, Visa is uniquely positioned to support the evolution of the nighttime economy:
Data and insights: Transaction data powers the index, helping cities, businesses and governments make smarter decisions.
Innovation: Visa’s digital payments infrastructure enables safe, seamless and inclusive commerce, day and night.
Trust: Visa’s AI-driven security protects consumers and businesses, building confidence in every transaction.
Whether in Sydney, Tokyo or Toronto, Visa helps extend the productivity of the 24-hour economy.
What’s next? The spending shift never sleeps
The spending shift is a global, multi-year transformation. Australia’s Nighttime Economy Index demonstrates the value of measuring and managing after-dark commerce, offering lessons for cities everywhere.
As we look ahead to the holiday season and beyond, Visa will continue to provide the data, insights and innovation that help economies thrive around the clock.