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The last two years have been terrible for nightclubs. This part of the hospitality industry was hit hard by the Covid-19 pandemic. Clubs were some of the last places to reopen after lockdown restrictions were lifted around the world.
Figures from the UK show how bad things are. Recent information from CGA shows that there are only 1,130 nightclubs left in the UK. In December 2019, there will be 1,446. This means that in the last two and a half years, 20% of venues have closed for good. The Midlands and the north of England have been hit the hardest.
In Europe, the non-profit International Nightlife Association (INA) estimates that between 5% and 20% of venues have closed in each country. The UK night-time economy is a profitable business that brings in £112 billion (US$136 billion) every year, which is 6% of the country’s total income. A big part of that profit comes from tourism.
“Nightlife tourism had over 300 million visitors a year before the pandemic,” says Michael Kill, CEO of the Night Time Industries Association. “Nightclubs are closely tied to international tourism” (NTIA).
As restrictions have been lifted, clubgoers have started dancing again. “In some territories, the turnout has been much higher than expected and even higher than before the pandemic,” an INA spokesperson says. “Consumers have been eager to go out again and are doing so often, especially after years of strict rules and clubbers who haven’t been out much because of the pandemic.”
Summer 2022 was also the first time that many people were free to travel outside of the country. Ibiza, Mykonos, Hvar, and other places that rely heavily on international clubbers are ready to rave like they’ve never been ready before.
“Our member association in Ibiza, Ocio de Ibiza, said recently that the numbers are higher than they were before the pandemic, and most venues are sold out. However, the damage done over the past two seasons will be impossible to fix,” INA says.
“People from other countries are spending money and travelling to party spots. The association also said that May and June were the best months for this season because customers had more money to spend and bought more.
Since reopening its borders, Australia has also seen a rise in international visitors, which the regional NTIA body says is good news for the nightclub business. Michael Gibb, CEO of NTIA Australia, says that Australia’s beaches, natural beauty, and culture have long attracted tourists from around the world. “It’s great that tourists keep coming back to our towns and cities. This includes people from other countries who come to our clubs and events.”
Even though the nightclub industry is still facing problems, this year there are still new clubs opening. Club Chinois opened in Ibiza in June. It is run by the same people who run the Park Chinois restaurant in London’s Mayfair neighbourhood. The 3,000-square-meter space can hold up to 1,000 people, and during the summer, Japanese restaurant Zuma opened a pop-up on its terrace.
Sofija Mehta, the owner of Island Hospitality, says, “We just got out of lockdowns, and it looked like the Covid situation was getting better, so we knew people wanted music, to go out, and to dance.” “Because of this, it seemed like the right time to open Club Chinois, and we thought Ibiza needed something new and fun.”
Ibiza isn’t the only place with new things to do. Even though Australia’s COVID-19 rules were strict and lasted much longer than in other parts of the world, Gibb says that consumer confidence is slowly but surely coming back, and new clubs are opening to meet demand.
“When restrictions were first lifted, there may have been some reluctance to go back out, but that has long since gone,” he says. “People can’t wait to get out and enjoy the night. New clubs are opening in Sydney, which is a good sign that people want to go there.
Mehta from Club Chinois is happy to see how busy the island of Ibiza is during the peak summer months, especially after a hard time.
“It’s amazing to see the island full of life again,” she says. “The restaurants, clubs, and beaches are all packed, and it seems like everyone is so happy to be able to travel again. The happiness and energy in the air is contagious.”
But as the party starts up again, the people who run nightclubs are aware of new dangers. Mehta says that after being stuck inside for long periods of time, people have found a new appreciation for being outside.
“Since the pandemic, people have realised that they can live without clubs,” she says. “They’ve started to enjoy being outside, in nature, more, and a lot of people have changed their schedules, maybe going to bed earlier than they did before Covid and having more parties at home. But I think people have missed having experiences so much that we are bringing the world-class food and cabaret from Parks Chinois to Club Chinois.”
Even though travel has started up again, INA thinks it will take a long time for the nightclub industry to get back on its feet. “We think it will take the industry five years to start over and get back to where it was before the pandemic,” the association says. “Many places in Europe are in a lot of debt because they have fixed costs but no income.”
The trade groups agree that the government needs to do more to protect the nightclub scene around the world.
“The strength of our sector will allow us to rebuild, but we will need more help from the government in the form of reliefs and a plan for deregulation, planning, and licencing easements to create trading opportunities,” says Kill of the NTIA.
Nightlife Industries asked governments and other trade groups not to forget about nightclubs because the hospitality industry as a whole is facing new problems.
“Clubs still need financial help from the government and other organisations. The pandemic is over, but the damage is still there, and we can’t forget about the industry,” Nightlife Industries said.
“Inflation and cost increases haven’t been good for the industry either. It’s also hard to find workers because many people who used to work in the industry have left to look for other jobs. One out of every three tourists chooses a place to visit based on what kind of nightlife it has. This means that governments need to see the industry as a partner, because one out of every three tourists chooses a place to visit based on what kind of nightlife it has.
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