Industry Analysis & Industry Trends
The music has stopped for many nightclubs during the past five years. Legislation that has extended licensing hours for other drinking establishments and banned smoking indoors in public buildings have removed the industry's main competitive advantage. Late-night revellers once had to go to nightclubs, but they can now stay at a pub or bar and enjoy a wider selection of drinks, cheaper prices and a more relaxed atmosphere.
Nightclubs have also come under pressure from the economic downturn, which has made clubbing unaffordable for many. On top of this, soaring youth unemployment and rising university tuition fees have hit the industry's core demographic hard... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The life cycle of nightclubs has taken a different turn to that of other establishments in the hospitality and service sector. Many industries in the sector have entered a growth phase but nightclubs are well and truly in decline. As a result of the legislative changes, nightclub operators became saturated with external competition. The economic downturn from 2008-09 onwards created tighter credit conditions and reduced consumers' discretionary spending, leading many to trade down to drinking and listening to music at home or at private parties. Industry value added, the contribution made by the industry to the economy, is estimated to decline at a compound annual rate of 3.7% during the 10 years through 2019-20... purchase to read more