What's Killing the Dancefloor? Could Nightclubs Become a Thing of the Past?
All photos refer to the 9th International Nightlife Congress in Barcelona / © INA
The European nightlife scene is going through an unprecedented crisis that, if not addressed, could precipitate its demise. At least that's what Michael Kill, Executive Director of the UK Night Time Industries Association (NTIA) and Vice-President of the International Nightlife Association (INA), tells us in this interview. The reasons for this decline range from operational pressures and cultural shifts, to regulatory and licensing issues. INA has been focussing on a medium and long-term strategy, that encompasses aspects such as sustainability, education, worker welfare and cultural protection. By instance, they are working with the WHO on health programmes, such as hearing conservation, and have just been appointed to the United Nations as an advisory body.
Below is a conversation with Michael (below on the screen) about the economic, cultural and legislative pressures that are threatening an industry that, like ours, bases its core business on interpersonal relationships and physical interactions.
What are the biggest challenges in representing your members?
I think the hardest part in terms of representation is influencing or micromanaging national legislation from an international trade body. What we are doing is creating stronger environments, policies and ethics so that we can start to not only generate value, but also achieve some parity in terms of standards. Another of the main objectives we face is data − when we talk about our internal strategy or our work with the United Nations, what determines whether we have actually had an impact? That is why we have to start with measurables, analyse the data proposal, and then build a strategic direction that has short-, medium- and long-term objectives. We cannot be held accountable for our results if we cannot gauge where we stand, especially when modelling the early stages of our strategic position.
The news about the sector today are rather alarming, with several European nightclubs closing down in an unprecedented crisis. What do you think is the reason for this?
I think there are a lot of misconceptions here. It is very easy for the media to blame GenZ for not wanting to get socially involved in a well-being proposal. According to a recent study we carried out with 2,500 respondents in the UK, 62% say they have changed their habits because of their financial situation. This lack of income will affect the frequency of visits, time and expenditure, leading to a decline in the market. Some 72 festivals have closed this year in the UK and we are losing eight pubs a week.
In the UK in particular, we have some challenges with the night-time transport infrastructure and a number of security and policing issues. In addition, our licensing and planning system is very onerous – it is not conducive to growth or investment and is very risk averse. On the other hand, we also have companies that are seeing an increase of around 30 to 40% in operating costs since the pre-pandemic period, leading to the bankruptcy of many of them. By way of example, the increase in alcohol duty means that, from April, there will be an extra burden of between £30,000 and £80,000 on these clubs. Logically, part of this will be passed on to the consumer. The reason we have issued this warning (at the current rate, all the UK’s major nightclubs will be extinct by 2029) is to draw the government’s attention to the fragility of the sector and the fact that nightclubs are a British institution that needs to be protected.
"We have to understand the evolution of the club sector, to go beyond weekend events and become multifaceted."
The nightlife industry is not just about entertainment; it is about identity, community and economics. How have you pledged your commitment from the perspective of social legacy and giving back to the communities?
As a trade organisation in the UK, we do not just look at clubs and festival bars, we look at the sector as an income system that sustains and operates various professional activities. One of the things we do every year at the NTIA is to present a report on the total revenue we get from the night-time economy. Last year, we generated £136 billion in revenue – that is more than the automotive, more than beauty and more than fashion industries in the UK – which corresponds to 2.04 million people employed, plus a huge amount of people coming through our doors. If you look at the supply chain, whether you are a contractor, a club owner or a drinks supplier, there is a lot of interdependence in the structure and delivery of what you do. Something we have been very clear on is that around £2.4 billion has been spent in the local economy, buying local projects, utilising services and developing those businesses. The impact on the local economy and workforce infrastructure is huge, whether it is hotels, transport, pubs, etc., and we have a far-reaching influence in areas such as foot-fall, catering and tourism. Therefore, we deserve a seat at the table, and we need to make sure we are not seen as a burdensome industry.
In plain sight, your sector is also often mischaracterised by harassment, violence or substance abuse. How is INA reversing this situation by pushing safety, education and responsibility to the forefront?
Ultimately, what we would like to achieve with INA is to raise the standards and benchmarks of our activities in order to feel the pulse of the industry and fight for it. As we know, there are a multitude of evolving standards in terms of safety, protocol, duty of care, safeguarding, which require us to move towards an accreditation phase. New medicines and drugs come out every day, so we have to understand and move forward with what that means over time. Whether it is harm reduction and drug testing, or duty of care and safeguarding, there is an evolving plate of requirements that are quite relevant from an accreditation perspective. However, the sector is becoming more professionalised and what we have to do is overcome these stereotypes in order to change the narrative. As a hub, we also need to move towards benchmarking and ensure the communication of some fantastic practices out there. In short, we want to be that conduit of standards and quality to make a difference and be accredited against it.
"We have to recognise what we have in hands in terms of ownership and licensing to build a greater value proposition."
What can the event and nightlife industries learn from their own difficulties and setbacks in recent times? How can both industries reinvent themselves as an alternative to digital devices and sedentary lifestyles?
The most important thing is that the next innovations come about through our ability to liaise with different players and explore new avenues and new markets. We have to be multifaceted. We cannot limit ourselves to our target audiences, and so we need to be more innovative in order to appeal to new audiences, be it LGBTQ+, different genres of music, cultural creativity, urban culture, sneaker shows, etc. This means exploring new avenues and broadening the scope of our activities to find out who we are reaching in the community.
At the end of the day we always have to come back to the community. In the old days of UK raves, if someone got hurt or in trouble, the community used to come in and look after them. Nowadays, when something unusual happens, everyone pulls out their smartphones. When we talk about lack of security, sexual offences and drug abuse, what we lack is that sense of community that leads us to a larger movement. Our role is to reconcile the community with what we are doing, so that they can get actively involved and report high-risk situations. It is important to remember that we are the biggest gateway to youth culture, social education and community building in our member countries. We are the ones who can set a direction for the sector through influencers, artists, advocates and unlike trends.
On your website, you published a very interesting article about ‘redefining art through nightlife.’ How do you think art and technology will reshape the nightlife sector?
We have a long way to go when it comes to converging technology and art. There are no two ways about it. The truth is that you can have a great club with excellent staff in a top location, but without people you have nothing. The conjunction between physical and virtual realities is just around the corner. Aspects such as temperature, visual effects, robotics, AR and VR – all of these are beginning to play a more important role in recreational experiences. We see this in clubs like Printworks, Drumsheds, where their art installations are beyond incredible. It is how quickly we and the market can move that will dictate our understanding of these influences. The most relevant factors I see at the moment are innovations such as two-way streaming and monetisation of hybrid experiences. One of the challenges we have in the UK is the crossover between classic culture and counter-culture. For example, Fabric has been collaborating with institutions like the Tate Gallery, and British hip-hop has been permeating classical culture with theatre shows. The impact of these two worlds is influencing each other and there are some really interesting collaborations happening.
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