Murder on the dancefloor: the death of the club economy

Whether you frequent POP! on a Wednesday, Smack on a Tuesday, Neon on a Friday, or wherever you spend your intoxicated, dance-infused evenings, enjoy them while they last – they may not be around for much longer.  

The Night Time Industries Association (NTIA) projects that by the end of 2029, “nightclubs [will] vanish completely from our cultural landscape”, with over 150 nightclubs closing every year in the UK, in what the NTIA’s CEO, Michael Kill, called a “systematic dismantling of the night-time economy”. In Da Club, 50 Cent? There aren’t any left, I’m afraid.  

The DJ won’t have us fallin’ in love again, it turns out, and that has wide-ranging ramifications for the British economy. Nightclubs contribute over £700 million annually to the national economy, employing over 37,000 people, with linked industries such as the alcohol sector providing 2.5% of the UK’s GDP. Sacha Lord, Greater Manchester’s nighttime economic adviser, and Rekom, owner of UK nightclub chains Pryzm and Atik, have attributed the tumbling of the industry’s revenue at an annual rate of 14.2% to the cost-of-living crisis. Whilst this is certainly a factor having a detrimental financial effect – as nearly 6 in 10 students (the lifeblood of the club economy) cannot cover their living costs solely from their student loan, there are a myriad of elements involved in the clubbing industry’s catastrophic monetary performance. Unfortunately for the wider British economy, the club economy really is drop(ping) like it’s hot.  

Increased illegal drug use serves as a detriment to nightclubs, disrupting the consistent engagement and spending that the club economy has always survived upon.

We found love in a hopeless (economic) place. Well, that’s great for you – but for many, the cultural appeal of clubbing simply isn’t there. In 2021, 74.6% of 16 to 25-year-olds had consumed alcohol in the last month, with this figure dropping to 51% by 2022, one report found. Taking too many shots (Last Friday Night) no longer holds the same societal prominence. “Western culture is undergoing a structural shift away from alcohol as entertainment, social lubricant, self-medicament, or ritual”, notes Professor Galloway of New York University. Simply put: ‘Gen Z are Sobering Up’, and as the allure of alcohol fades, so does the self-replicating clubbing culture of spending one’s evenings on overcrowded, sweaty, neon dancefloors. Sorry, Gaga, Just Dance you say? Not anymore.  

Regrettably, whilst alcohol is declining in cultural prominence, alternate substances are replicating its popularity, filling the gap of reduced alcohol consumption whilst simultaneously causing it. A third of 16 to 25-year-olds now use illegal substances – meaning young people are becoming increasingly likely to be actual junkies as opposed to bassline junkies. It is, however, harder to quantify the financial impacts of rising drug use on the clubbing economy, as club drugs are used by up to 1 million people per year. Thus, the rise of this subculture could represent an illegal boost to British clubs, as it provides an ideal environment for abusers to congregate. However, this presents venues with other issues (many of them with the law) as well as putting off non-users, all while draining the pockets of young people further as they outlay ludicrous amounts for substances. As it is for wider society, increased illegal drug use serves as a detriment to nightclubs, disrupting the consistent engagement and spending that the club economy has always survived upon.  

The clubs of Britain must evolve to survive, but it is yet to be seen how this evolution will manifest

The NTIA has projected The Last Night Out to be on December 31 2029, giving a whole new meaning to Usher’s instruction to dance, dance, like it’s the last, last night of your life. The organisation believes that without significant change, this will be the “very final event of all night club culture”. In response, the organisation has launched a petition to “save the rave from the grave”, urging the government to take protective action of this “vital cultural sector”. Specifically, the petition calls for the government to provide sustained financial support, grant cultural protection, and reform the regulations governing UK clubs. The NTIA has suggested the current economic environment is hostile to the industry, citing licensing, business rates, and planning policy, urging their immediate review to save the industry. At the time of writing, the petition has just over 1,300 signatures, suggesting it will do little to combat the death of UK clubbing.  

It is clear several socioeconomic factors are actively working against the industry. The clubs of Britain must evolve to survive, but it is yet to be seen how this evolution will manifest. Avicii would be horrified – without clubs, he would posit, how will we live a life that we remember?