An insight into the Economic, cultural and community value of the Night Time Economy and the contribution of the night time cultural economy within the UK.
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About the NTE Report 2023
This is the second Study of Night Time Economy. It has been commissioned by the NTIA to fully understand the economic contribution and significance of the night time cultural economy (NTCE) to the UK economy. It also situates the NTCE within the wider UK night-time economy (NTE) and the overall ‘out of home’ leisure economy (OHLE).
The NTCE focuses on those elements of the NTE that are driven by cultural and leisure activities – with less dependence upon retailing food and drink than the wider OHLE.
As sectors that were amongst the worst affected by the Covid 19 pandemic (and are still recovering), the NTIA argues that the NTCE and NTE are still not accorded the importance economically (or indeed socially and culturally) that they deserve.
The leading leisure consultants CGA and night time economy specialists MAKE Associates were asked to re-model the data and update the baseline figures set out in the first Study of Night Time Economy, in order to build a picture of how the industry is recovering from the pandemic.
It is too early to understand the statistical impact of the current cost of living crisis on our industry: this will be the subject of the next iteration of this study.
Findings from the NTE report 2023
The nighttime economy contributed 4.1% and £93.7 billion to the UK economy. This was down from 5.1% and £116.1 billion in 2019 respectively. The UK OHLE provided 2.92 milllion of the country’s 32.75 million jobs in 2018. In 2020 it fell to 2.69 million albeit it bounced back to almost 2.87 million in 2021. However, despite this, the industry still suffers from significant staff shortages and high vacancy rates, suggesting that growth is being held back despite the new jobs created in the past year.
However, as we head further into a cost of living crisis despite the bounce back in jobs and firm numbers, consumer spend, sector income, productivity and profitability, continue to struggle. This suggests that the industry is operating on ever smaller margins and a large proportion of firms are in ‘survive’ rather than ‘thrive’ mode – employing staff to operate but having to exist with much lower income and low margins.
And whilst this is a deliberately narrow economic study, it is vital to recognise that the NTCE has significant impact beyond its pure economic outputs. It is vital to social cohesion, self-identity, mental health and well-being and in creating a positive image for the UK on a global scale.
