In this new Ragtrader series, we investigate how capital cities are planning to revitalise CBD traffic after the COVID-19 pandemic.
Melbourne CBD has seen significant growth in foot traffic since the pandemic, as the City of Melbourne and the Victorian Government drive new initiatives to further grow fraffic for businesses.
According to the City of Melbourne, general pedestrian activity near the Town Hall was at 87 per cent of pre-COVID levels in July this year.
During this period, the highest activity was on Saturday, July 2, when activity was at 124 per cent of pre-COVID levels.
In an interview with Ragtrader, Lord Mayor Sally Capp said increases are a “vote of confidence” in the City’s growing momentum towards covid-normal.
“Melbourne is absolutely buzzing with activity, as people flock to the city to shop, dine and enjoy our jam-packed calendar of events and creative offerings,” Capp said.
“Our key dining and entertainment precincts are leading the charge in our city’s revival.
“For eight consecutive weeks, night-time pedestrian activity in Southbank exceeded pre-pandemic levels.
“Between May and June, visitor spending surpassed pre-pandemic levels by five per cent, totaling more than $832 million.”
Night-time activity is also growing across key dining and entertainment precincts, according to the City Of Melbourne.
In July, the average night-time pedestrian activity in Southbank was at 150 per cent of pre-Covid levels. Lygon Street was at 90 per cent, and Chinatown was 69 per cent.
Retail spend in Melbourne continues to exceed pre-COVID levels, reaching $353 million in July. This was 8 per cent higher than July 2019 and 76 per cent higher than July 2021, when the state was under strict lockdown.
During the City of Melbourne’s Shop the City campaign (Friday 3 June – Sunday 5 June), total retail spend in the city was $31 million. This was an increase of 12 per cent on the previous three-week average.
Retail spend was highest on Saturday 4 June – up 21 per cent on the three-week average.
Night-time spend in June was up 17 per cent in June 2022 compared to June 2019. The total night-time spend in July was $283 million – up nearly 20 per cent on July 2019.
The City of Melbourne's retail spend data was provided by Geographia, using card transaction data within Melbourne CBD.
To continue this growth in foot traffic across CBD businesses, the City of Melbourne is investing $33.7 million to grow Melbourne’s events, culture and creative programs.
These initiatives include waiving outdoor dining fees until October 31, investing in the City’s laneway art scene via the Flash Forward program, and opening up empty spaces through the City’s Shopfront Activation Program.
The $2.6 million Shopfront Activation Program is transforming empty shopfronts into creative spaces, bespoke displays and pop-up shops, to help generate growth in the city and supporting small businesses.
It is jointly funded by the City of Melbourne and the Victorian Government.
The Flash Forward program is transforming 40 of Melbourne’s laneways into works of art, creating 170 jobs over 18 months for local creatives.
The program has generated nearly $9 million into the local economy, according to the City of Melbourne, and helped to welcome Melburnians and visitors back into the city.
Melbourne’s tourist traffic is also growing, with international flights increasing by 14 per cent in June compared to the previous month, bringing in an additional 25,000 visitors.
Domestic arrivals were up 3 per cent on the previous month, reaching 94 per cent of pre-COVID levels. They were 477 per cent higher than June 2021.
In July, hotel occupancy in Melbourne reached 67 per cent – up over 9 per cent the previous month. This is the highest occupancy rate since February 2020, according to the City of Melbourne.
The City of Melbourne's hotel occupancy data is provided by STR Global, drawn from hotel and accommodation providers in Melbourne CBD.
Finally, visitor spend exceeded pre-pandemic levels by 5 per cent in July, totaling more than $832 million.
Visitor spend increased 5 per cent on the previous month, and is an increase of 88 per cent on July 2021.
“We’ll continue to do everything we can to earn the commute of city workers to back our businesses and boost Melbourne’s economic recovery,” Capp said.
“With Melbourne Fashion Week beckoning, the International Jazz Festival nearing and AFL finals just around the corner, there’s never been a better time to get into the city and enjoy Melbourne for all it’s worth.”