What next for Auckland’s ailing night-time economy?

Migrants from Asia are typically surprised by the lack of late-night entertainment offerings in New Zealand's largest cities.

Whereas many cities in Asia are bustling with street food vendors, markets, bazaars and cultural performances that are open late into the evening, substantially fewer options are available after 6pm in New Zealand.

Some business owners in central Auckland have attempted to buck this trend but have been hit by the twin blows of the lingering impact of Covid-19 and the more recent cost-of-living crunch.

Many are struggling with a dearth of customers who are also reportedly concerned about high crime rates in the CBD.

And yet, green shoots of optimism have emerged from some quarters who can see some light at the end of the tunnel.

Grim outlook

Little Panda Takeaway has been a fixture on Wellesley Street in central Auckland for more than a decade, opening at 8am and typically closing around 8pm each day until the middle of last year.

Last July, however, owner Wei Wang decided to extend business hours until midnight.

"Business is tough, and rent is high," Wang said. "There aren't many late-night food options on this street, so we started offering late-night snacks, operating from 8am until midnight."

Wang said his primary customers were office workers, international students and tourists, but foot traffic had dropped significantly since the pandemic.

"2012 was the best year for business," he said. "Lately, things haven't been great with fewer tourists around.

"Local customers don't have extra money to eat out," he said. "They used to order two meals. Now they only order one."

Wang said while several banks had lowered mortgage rates recently, potentially leaving more money in customers' pockets, the country's record-high population loss had made business even tougher.

"Everyone is moving to Australia. Who would still want to come here?" he said. "This year, we don't see our regular customers anymore. It's all new faces."

Wang said his shop was robbed three times last year.

Despite concerns about crime in Auckland, he remained committed to keeping the takeaway outlet open until midnight.

"We can make a little more by staying open four extra hours," he said.

That said, Wang was not optimistic about the future of his business.

"It's [going to be] hard to return to 2012 levels," he said.

'Very lively before 2008'

The Nightcar, an underground lounge bar that opened on Queen Street in January 2024, has faced similar challenges with the loss of regular customers.

"Nowadays, many locals have moved to Australia or elsewhere," said Daren Zhou, owner of The Nightcar. "Since our business depends on local customers, we've lost a significant portion of our customer base."

Zhou said his business barely made profit last year, describing spending as stagnant.

"New immigrants or those planning to move here take time to integrate into society and explore different places," he said. "I suppose we're in a transitional period, which makes business difficult and unstable."

Zhou said he chose Auckland CBD for his business because he grew up in the city and remembers Queen Street as a lively, bustling hub filled with traffic.

"It was very lively before 2008," he said. "When I was young, I'm pretty sure you couldn't drive into Auckland's CBD in under 25 minutes. You couldn't even find a parking spot."

Zhou emphasized the need for Auckland to attract more young talent to restore its once-vibrant atmosphere.

"New Zealand is often described as a 'retirement paradise', but this offers no real benefit to businesses," he said. "To drive economic growth, the country needs to attract more young talent."

As a business owner, Zhou hoped to see Auckland's central business district regain the energy he once knew.

"Of course, I want to see crowds on the streets, a lively atmosphere and people from all walks of life well into the evening," he said. "The more people in the city center, the better."

'New Zealand lacks a true night-time economy'

YYDS Pool Hall opened last September on Wakefield Street in Auckland's CBD, operating from 3pm to midnight.

Business owner Tong Yu is optimistic about Auckland's economic recovery - a key reason he chose to launch his venture in the heart of the city.

"The economy is slowly recovering after the pandemic," Yu said.

"International students are returning, and businesses that had shut down are reopening," he said. "We are confident that Auckland CBD's economy is on the upswing."

Yu said more than 60 percent of his customers are Chinese international students, many of whom played pool before coming to New Zealand. This habit, he noted, has helped his business establish a strong customer base.

"During the university holidays, many students returned to China, and we saw a significant drop in customers," he said. "Business was a bit slow during that period. But considering the academic calendar and university breaks, I believe the business is still doing fine overall."

Yu said his business stayed open late to meet customer demand, positioning it as part of the city's late-night economy.

"Student customers tend to play late into the night if they don't have lectures the next day - sometimes until 1am, 2am or even 3am," he said. "Because of this, our business requires us to stay open late - at least until midnight."

Yu noted that New Zealand could not replicate China's vibrant nightlife due to fundamental differences between the two countries.

However, he hoped Auckland's night-time economy would become more diverse and dynamic, drawing more foot traffic.

"Currently, the only notable night-time businesses in the city center are restaurants, liquor stores, a few pool halls and internet cafes," he said. "Beyond that, New Zealand lacks a true night-time economy.

"If the government implemented measures to expand nightlife and create a safer, more inviting environment, more people might be encouraged to go out at night."

Diverse population a 'growth opportunity'

Viv Beck, chief executive of Heart of the City, said that while restaurants, cafés, and other hospitality businesses remained a cornerstone of Auckland's downtown economy, the city's fast-growing, diverse population presented an opportunity to expand its night-time offerings.

"Our expectation is that the offerings will continue to diversify," Beck said. "If you look beyond hospitality and restaurants, we have karaoke bars, escape rooms and a variety of things for different interests.

"I think it's fair to say we there's growth opportunity."

Beck said total consumer spending in Auckland's city centre reached $1.43 billion in the 12 months to December 2024.

Daytime spending had recovered to about 85 percent of pre-Covid levels, while night-time spending rebounded to roughly 90 percent, she said.

The cost-of-living crisis had curbed some activity, yet night-time spending still accounted for a third of overall expenditure, according to the latest Heart of the City statistics.

Beck said Auckland's central business district had made significant progress in improving safety, with measures such as 24/7 security guards stationed in the core city area to help people feel secure.

"Crime has significantly reduced since its peak in early 2023, and we're very pleased with progress," she said.

She also highlighted the opening of a downtown police station in Federal Street as another major step forward.

Auckland Central commander inspector Grant Tetzlaff said reported crime in the CBD had fallen markedly over the past year.

Tetzlaff said police would continue to maintain a presence in the central city's nightlife areas, including increasing visibility, especially on busy nights with major events.

He said police would also focus on addressing alcohol-related issues to improve safety in the CBD.

"There are longstanding issues surrounding consumption of alcohol at night. This is not unique to central Auckland," Tetzlaff said.

"Unfortunately, this does mean there will be instances where alcohol may fuel offending which involves violence. Our staff will continue to respond to such incidents."

Beck said that with more overseas tourists and international students returning, she remained optimistic about central Auckland's long-term outlook.

"The reality is there has been a knockback in recent years with Covid and all those impacts," she said. "But we believe we've turned a corner and we're heading up, and we're excited about welcoming more people here."