Hobart Nightlife Faces Uncertainty After Major Venue Closures

Set up behind her DJ decks, Brittney McNeil's job is to read the room, keep the energy high and provide the soundtrack for a memorable night on the dancefloor.

But for the past two years, she has noticed the beat changing in Hobart's nightlife, with smaller crowds, quieter Fridays and fewer people buying drinks.

After the sudden closure of seven venues, including the Observatory Bar where she regularly performed, she is one of many wondering what comes next for the city's after-dark scene.

The affected pubs and clubs were all owned by the Pub Banc Group and Hotel Banc Group, which was placed under voluntary administration on Monday.

The group's director, Ian Vaughn, blamed an "extended period of challenging trading conditions", including higher operating expenses and changing consumer behaviour.

Industry experts said the situation reflected the challenges being faced by many businesses across the city's hospitality sector in recent years.

They have called on the City of Hobart and the Tasmanian government to consider ways to improve collaboration and secure the future of Hobart's night-time economy.

'Margins are getting tightened' for venues

Tourism Industry Council Tasmania chief executive Amy Hills said the closures were "a really big blow" for Hobart's hospitality sector, but not an unexpected one.

"Costs are going up across the board … and there is only so much you can charge customers because they're being hit with cost-of-living pressures as well," Ms Hills said.

She said the challenges being experienced in Hobart mirrored those affecting hospitality businesses across the nation.

DarkLab chief executive and creative director Leigh Carmichael said the sector had never fully recovered from the COVID pandemic.

He said his venues, which include In The Hanging Garden, the Odeon Theatre, and Altar Bar, had noticed a drop in the amount each individual customer was spending.

"People are definitely tightening their belts and living within their means," Mr Carmichael said.

Beyond consumer behaviour, he said there were significant costs associated with regulation and red tape which were causing a drain on businesses.

"There are certain costs around noise, licensing, venue use, how buildings are used — they all do add up … so it's quite an expensive exercise," Mr Carmichael said.

Calls for improved collaboration, better investment

Ms Hills said Hobart's night-time economy should now become "an absolute priority", describing it as critical not only for locals but also Tasmania's visitor economy.

She said hospitality venues, particularly in the Salamanca area, were an important part of the experiences visitors expect when travelling to Hobart.

The tourism boss said continued investment in events, tourism marketing and collaboration between industry and government would be needed to ensure businesses could survive.

Mr Carmichael said the latest closures would be "really detrimental" for the vibrancy of the city's nightlife.

He called for closer collaboration between venue operators, the City of Hobart and the Tasmanian government, particularly when it came to reducing unnecessary regulatory barriers.

"There is a positive future for nightlife and the night-time economy in Hobart," he said.

"But we need to make good decisions and we need to work well with council and state government to ensure the conditions are ripe and right."

According to the City of Hobart, the city's night-time economy supports more than 650 businesses, employs more than 7,000 people and generates about $1.1 billion each year.

The council said that since 2009, the number of businesses had grown by nearly 45 per cent, while employment had risen by 20 per cent and annual turnover had increased by 40 per cent.

An industry forum was held in the city in late May, with night-time economy commissioners from New South Wales and Queensland meeting with local industry representatives.

Venues offer support to those affected by sudden closures

The venues which shut down on Monday will all undergo an urgent sale process, as part of the voluntary administration.

Ms McNeil was hopeful the venues could reopen in some form and that the hospitality industry would rally around those left searching for their next opportunity.

"There are a lot of other DJs in this scene, it's a very talented and big industry … so it's going to be hard to try and squeeze into the other venues," she said.

"It will be really good to see the industry come together and help any of us out that might be struggling."

Multiple local venues have already stepped forward to try and help those affected by the sudden closures.

The Hobart Workers Club has offered free function room hire for those whose events can no longer be hosted.

And the New Sydney Hotel has committed to matching any tips given to staff this week and donating the total to workers who have lost their jobs.