FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era

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FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
FLICKING THE SWITCH
Research and insights to help Sydney’s CBD
turn the lights on a new era
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
FOREWORD
                      When I became the inaugural New South Wales 24-Hour           We already have good foundations to build on. The CBD
                      Economy Commissioner, the Sydney CBD had already              already boasts experiences from street hawker food off
                      faced a year of the COVID-19 pandemic. The impact of          Broadway, to a bar in The Rocks rated as one of the top 50
                      lockdowns and a significant shift to working from home        in the world. And that’s before we get to the most iconic
                      has been well documented elsewhere. Many businesses           opera house in the world.
                      in the CBD have had a chastening experience, from the
                      office tower café that served coffees to early morning        The CBD is also a place where everyone can find a sense
                      office workers, to the small bar that gave them a             of belonging. It is easy to move around, there are places
                      deserved drink at the end of the day.                         to enjoy for everyone from ages eight to 80. Our history,
                                                                                    cultures and stories are embedded into the streets,
                      The images of deserted main streets like George and Pitt      buildings and places within the CBD. Our story to the world
                      have been hard to absorb. That’s why one of my first acts     is represented through our iconic CBD vistas and scenes –
                      as Commissioner was to ask EY to develop ideas on how         from New Year’s Eve on Sydney Harbour, our iconic skyline
                      the CBD can recover, using entertainment, hospitality,        to Mardi Gras beginning on Oxford Street. No city in the
                      arts and culture as a major driver. My instructions to the    world comes together to celebrate like Sydney. Even when
                      team were minimal: engage widely with people involved         things are tough – we don our glitter and put on a show.
                      with the CBD and be bold and imaginative in your
                      recommendations. The team has excelled on both counts.        I am hugely optimistic about the future of the CBD. It
                                                                                    has been an attritional and often brutal two years for its
                      This is an independent report and not all policy              businesses and residents, and recovery will take time.
                      recommendations are, or will be, state government             However, this report sets out a path to begin to rebuild the
                      policy. However, it is right that we debate the merits of     heart of our city. It’s time to flick the lights back on.
                      the ideas proposed in this report. The Sydney CBD is too
                      important to Sydney’s economy, brand and collective
                      identity to not have a plan to reactivate it.

                      Why focus on the CBD’s social and cultural offer?
                      Because the process of recovery requires us to recognise
                      that things have changed and to acknowledge those
                      areas that have been hardest hit. Working patterns are
                      likely to remain different to before the pandemic (as they
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                      have in almost all major cities around the world), so we      Michael Rodrigues
                      need to find new ways of attracting visitors to the CBD for   24-Hour Economy Commissioner
                      non-work purposes.                                            April 2022

02                                                                                                                                                    03
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
Sydney’s central business district has been a meeting          This indicates new trends in how people are accessing
                      place for the people of the Eora Nation for at least           the CBD. During the pandemic, traffic counters located
                      30,000 years. The site of the first British penal colony,      on a CBD ‘gateway’ cycleway (George St, Redfern and
                      Australia’s first parliament and many of its oldest and        Liverpool St, CBD) show an increase of cycling during
                      tallest buildings, Sydney’s CBD holds a special place in       lockdown related to trips taken for commuting, delivery
                      the heart of the nation.                                       and recreation.4

                      A centre of culture and commerce, Sydney’s CBD is home         More than $140 billion in gross domestic product was
                      to some of Australia’s largest companies and is Asia-Pacific   generated in Sydney’s CBD in 2018-2019, and one small
                      headquarters to many multinationals.                           2.8 square kilometre area was responsible for 9.4% of
                                                                                     Australia’s GDP growth.5
                      Sydney’s CBD was an economic engine room prior to the
                      pandemic and 14.5% of the city’s workforce headed into         Looking back to 2016, the Tech Startup Action Plan
                      the CBD each day.1 The residential population of 248,736       (2016) cited that $100 billion was generated each year
                      swelled to around half a million people daily.2                within the City of Sydney local area, representing more
                                                                                     than 7% of Australia’s economy and providing more than
                      In February 2020, data collection sites monitoring
                                                                                     437,000 jobs across all skill levels and communities.6
                      walking activity registered 96,000 weekly movements at
                      Bridge Street in the CBD. At the same time in February
                      2021 there was a reduction by 46% to 51,200, and a
                      further reduction of 35% to a weekly average of 35,000
                      movements in February 2022.3 We know for a fact there
                      are just less people walking CBD streets.
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04                    1.   Terrill et all, Grattan Institute, 2018, p.14                                                                          05
                      2.   The city at a glance, City of Sydney, 2020
                      3.   City of Sydney automated pedestrian count data
                      4.   Transport for NSW Active Transport: Cycling data
                      5.   SGS Economics & Planning, 2019, p.14
                      6.   Tech Startup Action Plan, City of Sydney, 2016, p.14
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
In 2019 City of Sydney Economic Future study by Arup                    The pandemic has now reshaped how people live, where             “Sydney’s CBD – Australia’s oldest                          Investors are continuing to invest in office space. In the
                      ranked Sydney as sitting just behind major cities                       they work, how they value and spend their time and                                                                           last few weeks of 2021, sizeable deals were struck with
                      like Vancouver, Copenhagen and Dublin as home to                        money. It has exacerbated obvious problems and exposed           and largest – remains a source                              large institutional investors including ASX100-listed
                      globally influential firms, with more than 60% of top                   hidden ones. The sense of pride and fond memories                of pride but it wasn’t firing on all                        Charter Hall, global investment business Blackstone and
                      innovation technology firms located in Sydney’s CBD and                 of the CBD may remain, but people have recast their                                                                          Singapore-listed CapitaLand. As The Australian noted,
                                                                                                                                                               cylinders before the pandemic.
                      Harbour area.7                                                          definition of a great experience. The CBD is now in an                                                                       these companies are “bullish that Australian offices will be
                                                                                              intense battle with other local areas across Sydney.             We now have a once-in-a-                                    among world leaders in the return to work early next year
                      Retail was a major employer of people in the CBD. In
                      2017, 7,320 retail-related businesses in the City of                    All cities evolve with the challenges of the era, and
                                                                                                                                                               generation opportunity to                                   as low levels of office occupancy start to pick up”.12

                      Sydney accounted for 35.5% of all businesses in the local               COVID-19’s challenge to the lifeblood of our city is a           reimagine our CBD as something                              The NSW Government is investing strategically in a
                      government area and employed 66,169 workers.8                           chance to reset and reimagine. The CBD will not be the           better than it was. To do this we                           range of initiatives, from incentives like ‘Dine & Discover’
                                                                                              same as it was before COVID-19. Our opportunity is to                                                                        vouchers to long-term placemaking like Australia’s greatest
                      Sydneysiders are proud of their CBD, but there was                      create something different, but better.                          are listening to Sydneysiders from                          urban walking trail along Sydney Harbour foreshore and
                      room for improvement before the COVID-19 pandemic
                                                                                                                                                               all walks of life. We know our future                       into the heart of the city. Precincts are also evolving in
                      changed the world. In a consumer research survey                        With this in mind, the Office of the 24-Hour Economy                                                                         front of our eyes. The Rocks has been transformed by
                      undertaken by EY in 2016, citizens expressed their                      Commissioner engaged EY to set in place a program of             success depends on creating a true                          expansion of alfresco infrastructure in a treasured part
                      “mounting frustrations” with issues such as housing                     research to deep dive into how Sydneysiders view the             24-hour CBD with events, activities                         of our city. YCK Laneways (bound by York, Clarence and
                      affordability and public transport. They were concerned                 CBD and how they interact with it. Our objective was
                      that infrastructure investment was not keeping pace                     to benchmark people’s perspectives, memories and
                                                                                                                                                               and experiences that attract                                Kent Streets) has been formed to create one of the most
                                                                                                                                                                                                                           exciting small bar districts in the world. Tech Central, on
                      with the needs of residents, and that the strength                      perceptions of the CBD pre-pandemic. Most importantly,           people back again and again.”                               the north-western fringe of Central Station, is poised to
                      of loyalty and pride in their city could, with time, be                 we wanted to understand how Sydneysiders might                                                                               become a thriving precinct and together with an already
                      undermined.9 These sentiments were also echoed in                       engage and embrace the CBD in the future.                        Michael Rodrigues, 24-Hour Economy                          pumping Surry Hills will further position Sydney as a digital
                      research undertaken by City of Sydney which compared                                                                                                                                                 and creative hub.
                                                                                              This research was a rare opportunity to listen to                Commissioner, Investment NSW
                      community attitudes prior to and during the pandemic,
                      finding that while transport and housing affordability                  Sydneysiders to understand how their lives have changed                                                                      For the CBD to rebuild, collaboration is critical to success.
                      remained top areas of concern, financial hardship as well               and what this means for the CBD. The insights gained can                                                                     It is only by working together that we will develop better
                      as a general sense of anxiety about the future displaced                contribute to a strategy that encourages people to return                                                                    policy, devise better ways of working across all the key
                      concerns about culture and going out as one of the top                  to the CBD, not just once or occasionally, but repeatedly.                                                                   players, and deliver better and more creative initiatives
                      five issues.10                                                          And not just for work, but for entertainment as well.                                                                        that attract people who may not have considered the CBD
                                                                                                                                                           While it has been a difficult two years, positive signs         pre-pandemic.
                                                                                                                                                           point to a bright future for the CBD. Office occupancy
                                                                                                                                                           levels – an important measure of CBD vibrance –                 While this research captures a moment in time, we have a
                                                                                                                                                           bounced back from 7% in January 2022 to 41% in                  new treasure trove of data with deep insights into people
                                                                                                                                                           March 2022, according to the Property Council’s Office          from all over Sydney that can help us shape practical
                                                                                                                                                           Occupancy Report. On peak days occupancy in Sydney’s            targeted measures, short-term tactics and long-term
                                                                                                                                                           CBD increased to 52%, although the low was 23%.11               placemaking moves.
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06                    7.    Arup, City of Sydney Economic Future: towards a new cycle, 2019                                                                11. Property Council of Australia, April 2022                                                                                      07
                      8.    City of Sydney, 2022                                                                                                           12. https://www.propertycouncil.com.au/Web/Content/Media_Release/NSW/2022/Sydney_s_office_occupancy_data_surges_as_workers_
                      9.    EY, How can you build a strong city pulse, without taking the human pulse?, 2016                                                   flow_back_to_the_office.aspx
                      10.   City of Sydney, Community Wellbeing Indicators 2019
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
EXECUTIVE
                                                                                                                                           Certain groups – notably younger Sydneysiders, CBD             When people were asked which initiatives would bring
                                                                                                                                           office workers and people who live within 30 minutes           them back to the CBD, some responses were no surprise
                                                                                                                                           of the CBD – are enthusiastic about their return to the        and others raised eyebrows. Convenience is important:
                                                                                                                                           city. But make no mistake: the CBD is now in an intense        cheaper and easier-to-access parking and more reliable

                      SUMMARY
                                                                                                                                           battle with other local areas across Sydney.                   and frequent public transport are among the top initiatives
                                                                                                                                                                                                          to re-engage Sydneysiders. However, some of these
                                                                                                                                           Travel restrictions and hybrid working have                    requirements also necessitate trade-offs. Cheaper parking
                                                                                                                                           transformed local areas and high streets into a greater        may exacerbate traffic congestion, for instance, and
                                                                                                                                           competitive threat to CBD precincts than at any other          therefore may not be desirable.
                                                                                                                                           time in the last three decades. But this ‘local area
                                                                                                                                           awakening’ has polarised Sydneysiders between two
                                                                                                                                           extremes: those who say they ‘don’t feel the need to           Initiatives
                                                                                                                                           return to the CBD to find great experiences’ (32%); and
                                                                                                                                           those who are ‘more likely to visit the CBD for activities                                                         PRACTICALITY
                                                                                                                                           than they did pre-COVID’ (35%).

                                                                                                                                                                                                        SHORT TERM
                      Sydney’s CBD has been an economic powerhouse                                                                         The CBD had core strengths prior to the pandemic,
                                                                                                                                                                                                                         59%                39%                35%
                      for decades and Sydneysiders are proud of their
                      city’s heart. But after two years of staying local,        39%                  of Sydneysiders excited
                                                                                                      about visiting the CBD ...
                                                                                                                                           but it wasn’t meeting its full potential. Pre-COVID
                                                                                                                                           deterrents now loom larger, especially as people seek                     Cheaper parking   More reliable/     Later running PT
                      the pandemic has reshaped how people live,                                                                           affordable and safe experiences. Cost, convenience and                        options        frequent PT
                      how they spend their time and money, and the                                                                         availability of parking featured frequently in qualitative                                      system
                                                                                                                                                                                                                                                               ACTIVATIONS
                      experiences they gravitate towards.                                                                                  feedback. So too did the lack of green space.
                                                                            57%                    66%                  63%
                                                                                                                                           Alongside the established barriers are a host of new
                      Sydney’s economic engine                              Are looking            Always something     Ideal place to                                                                                   58%                54%                37%
                                                                                                                                           ones. The notion of safety has extended beyond social
                                                                            forward to the         new to experience    spend quality      issues and now includes the health risk of being in
                      Prior to the pandemic, Sydney contributed ...         buzz of the CBD        in the CBD           time with others                                                                             Dine & Discover   Free or low cost   Pop-up activities
                                                                                                                                           crowds or busy areas.                                                        vouchers          activities
                                            of Greater Sydney’s
                          14.5%             workforce13                     Top CBD associations                                           Deterrents to CBD visitation
                                                                                                                                                                                                                                                              PLACEMAKING

                                                                            Is a fun place to be                                           Feel the CBD isn’t as appealing to visit as before
                           $140                                                                                                                                                                                          35%                32%                25%

                                                                                                                                                                                                        LONG TERM
                                            in GDP annually                                                            79%                 the pandemic
                            billion                                                                                                                            38%                                                   Increased green    More outdoor        Widening of
                                                                                                                                                                                                                          areas            dining         pedestrian zones
                                                                            The best dining options for special occasions
                                            of Australia’s GDP
                           9.4%             growth14
                                                                                                                       77%                 Don’t feel the need to return to the CBD to find
                                                                                                                                           great experiences
                                                                                                                                                            32%
                                                                            The best fine dining options                                                                                                But once the baselines of parking, public transport,
                      In late 2021, EY interviewed a representative                                                    77%                                                                              cleanliness and safety in the streets are stripped out,
                                                                                                                                           Feel places in the Sydney CBD can be too expensive
                      sample of 3,017 Sydneysiders to understand                                                                                                                                        the top initiatives are more intriguing, and include dining
                      evolving attitudes to the CBD and the activities                                                                                                       65%                        incentives and alfresco areas, more green space and pop-
                                                                            Easy to get there from my home during the day
                      and activations that would entice them back.                                                                                                                                      up activities.
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                                                                                                                       77%
                      This research, supplemented with wide ranging                                                                        Limited parking availability
                      qualitative research methods including online                                                                                                                                     While there is no one solution to rebuilding Sydney’s CBD,
                                                                                                                                                                             65%                        the report proposes several ideas and initiatives to be
                      forums and in-depth interviews, provides a new        The widest range of dining options
                      array of data and insights into how people might                                             76%                                                                                  considered by NSW Government and other policy makers.
                      engage and embrace the CBD in the future.                                                                                                                                         The report also highlights opportunities for businesses to
                                                                                                                                                                                                        re-engage and attract people back to the CBD.

08                    13. Grattan Institute, 2018                                                                                                                                                                                                                                09
                      14. SGS Economics & Planning, 2019
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
Recommendations
                      Our challenge is to reframe the narrow or dated perceptions that stop
                      Sydneysiders from rediscovering their CBD.

                      Our opportunity is to shine a light on the multiplicity of sub-brands within
                      the CBD for the many audiences looking for new and unexpected experiences.
                      In doing so we will flick the switch on a new era for Sydney.

                      Placemaking and planning                  Creating demand                         Activating the city                      Mobility and access                                        Licensing and regulation
                       1    Establish more alfresco             1   Extend the deadline for Dine &      1   Build on the $50-million CBDs        1   Consider options to encourage ridership on public       1    Explore the potential for more late-night licences in
                            infrastructure and access to            Discover, Stay & Discover and           Revitalisation Program and the           transport, including subsidised annual travel passes         particular districts
                            green, calm spaces                      other related vouchers to at            ELEVATE Sydney festival by               and later night running of services
                                                                    least 31 December 2022                  using existing infrastructure and                                                                2    Consider further alignment of planning legislation
                       2    Expand parklets and make                                                        outdoor space for events             2   Resist the call to increase parking amenities                for small bars to align development consent with
                            temporary use of road space for     2   Expand the range of ‘Discover’                                                   within the CBD or to subsidise parking within the            trading hours
                            hospitality businesses and pop-         activities that can be redeemed     2   Use major events to                      city, as public transport participation rates will
                            up events                               or offer additional vouchers for        encourage visitors to stay               improve with time                                       3    Develop a shared position on sound policy
                                                                    off-peak times                          longer in the CBD                                                                                     specifically to provide a definition of ‘offensive noise’
                       3    Forge collaborations between                                                                                         3   Trial micro-mobility and shared e-scooters on active
                            state and local government,             Trial a ‘culture pass’ for venues       Develop activities that target           transport infrastructure to quickly dissipate crowds    4    Streamline planning and licensing to support
                                                                3                                       3
                            the property sector and arts            and institutions across Sydney          young people and people with                                                                          ongoing efforts to activate institutions such as
                            and cultural institutions to host                                               families to come into the city for   4   Invest in additional active or ‘light’ transport             libraries, museums, warehouses and carparks for
                            activities, like art shows, live    4   Enhance and expand the                  non-work                                 corridors, e.g. connecting Green Square to the City          different uses, like dance parties
                            performances or theatre                 Sydney Pass iVenture Card
                                                                    to include a wider range of             Trial a ‘City Camp’ program          5   Urge employers to offer and promote flexible            5    Make lower-cost retail like pop-up shops, swaps
                                                                                                        4
                            Investigate ways to ensure              offerings for visitors                  for primary and secondary                working hours to relieve congestion on public                and market activations easier and more
                       4
                            affordable price points for food                                                school students and community            transport and encourage the development of                   cost-effective to establish
                            and beverage are maintained         5   Consider new offerings as               sports clubs to encourage                employment packages that include subsidised public
                            as part of the post-pandemic            demand drivers for the CBD              young people to get to know              transport travel
                            tenant mix                              (e.g. 24-hour food market and           and be excited by what the city
                                                                    new major e-gaming venue)               has to offer                         6   Consider ‘hot offices’ with subsidies that encourage
                            Consider creative and flexible                                                                                           employees to access CBD work locations or shared
                       5
                            use of building space to            6   Incentivise contractors,                Develop a strategic                      workspaces with free access to fast Wifi, an
                                                                                                        5
                            maximise capacity and create            participants in the ‘gig-               approach to events that                  affordable lunch and quiet workspaces
                            new business opportunities              economy’ and others to work             emphasises sustained
                                                                    from the CBD with discounts on          activation, which could              7   Trial late public transport running Thursday
                                                                    CBD co-working spaces                   be achieved with precinct                to Saturday nights to provide easier and more
                                                                                                            activation campaigns                     cost-effective transport for young people and
                                                                7   Fund targeted audience                  that highlight the unique                hospitality workers
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                                                                    engagement using a                      ‘personalities’ of place
                                                                    combination of traditional,
                                                                    non-traditional media and
                                                                    influencers to reinforce the                                                                                                            *Please refer to the recommendations section and appendix for
                                                                    ‘specialness’ of the CBD                                                                                                                further detail on these opportunities.

10                                                                                                                                                                                                                                                                               11
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
OVERVIEW
                      In late 2021, EY interviewed a representative sample
                      of 3,017 Sydneysiders to find out how their attitudes
                      to Sydney’s CBD had changed since the beginning
                      of the COVID-19 pandemic and the activities and
                      activations that would entice them back.
                      While this research was undertaken before the
                      Omicron outbreak in December 2021, the findings
                      remain relevant to the long-term future of the CBD.

                      The research included Sydneysiders aged over 18
                      years of age, living within Greater Sydney and who had
                      spent time in the Sydney CBD for work or leisure at
                      least once each year prior to the COVID-19 pandemic.

                      The research was also supplemented with a wide
                      range of qualitative research methods including online
                      forums and in-depth interviews to add additional
                      colour and insight to the hard data. This component
                      of the research was mostly conducted with adults
                      aged over 18 with some of the in-depth interviews
                      conducted with younger adults aged between
                      14-17 years.

                      For a breakdown of the respondent profile included in
                      the survey, please refer to Appendix 1.

                      Alongside the research with Sydneysiders, we have
                      also engaged with key representatives from the
                      property, hospitality, entertainment, culture and retail
                      sectors, City of Sydney, NSW Government and other
                      leading thinkers to explore how to reinvigorate the
                      Sydney CBD. Throughout this report, we have also
                      shared some case studies on different approaches that
                      are re-shaping engagement with specific precincts.
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12                                                                                  13
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
LIFE
                      REDEFINED
                      Sydneysiders are proud of their CBD as a             According to EY’s Future Consumer Index research, more
                      showcase, a special occasion destination and a       than half (54%) of all Australians say the pandemic has
                      place of discovery and exploration. But after two    changed their lives “significantly”, from how they work
                      years of predominantly staying local, the pandemic   and socialise, to how they travel, shop, dine and enjoy
                      has reshaped how people live, how they spend         leisure time. People have new perspectives on time and
                      their time and money, and the experiences they       space. Six in 10 Australians say they plan to be more
                      gravitate towards.                                   cautious of their spending in the future than they were
                                                                           pre-pandemic. A third say they are less inclined to choose
                                                                           experiences outside the home because of health and
                                                                           safety concerns. And half (50%) say their values and
                                                                           outlook on life have changed.15

                       Key statistics
                                                                              “I have realised that I spent money on things I didn’t
                                                                              need. I purchased a lot of beauty products even
                                               of those who                   though I hardly wore them. This time has shown me
                                               live in NSW are                that I don’t actually need as many clothes as I am
                            61%                thinking about the
                                               future and what’s
                                                                              finding myself wearing similar things most days.”
                                                                              Age 25-29, no children, lives less than 30 minutes
                                               important to them              from the CBD, does not work in CBD

                                                                              “Like everyone else, I’ve developed lots of habits
                                                                              to be cautious and mindfully aware of people
                                                                              surrounding me, and purposefully avoiding them to
                                               say COVID-19                   maintain social distancing.”
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                            51%                changed the way
                                               they look at life
                                                                              Age 25-29, no children, lives less than 30 minutes
                                                                              from the CBD, does not work in CBD

14                    15. EY, Future Consumer Index, February 2022                                                                         15
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
Life has changed16                                              Changes in behaviour15                                       EY’s most recent edition of the Future Consumer Index          Intention to return to pre-pandemic visitation
                                                                                                                                                   survey shows that Australians intend to return to their
                      Agree/strongly agree that the way they live has                                                                                                                                             frequency (in six months’ time)
                                                                                      I have become more used to cooking at home                   state’s major city CBD less frequently in the next six
                      significantly changed since before the pandemic
                                                                                                                                                   months than they did pre-pandemic.17 Prior to the
                                                                                                                          65%                                                                                     Proportion who will continue to visit once a month or more
                       70
                                                                                                                                                   pandemic, around 35% of Australians were visiting their
                             61%    61%                                                                                                            local CBD at least once per week with 45% visiting at least
                       60                                                56%          I am more comfortable in my own skin, without the need for   monthly. In six months’ time, it is likely that more than                          Sydney       Melbourne      Brisbane
                                            54%
                                                                                      beauty products or cosmetic enhancements
                                                          47%                                                                                      two-thirds of these pre-pandemic visitors will return to            Work
                       50                                                       54%
                                                                                                                       62%                         the city at least once per week and more than
                       40                          44%            44%                                                                              three-quarters plan to return at least once per month.                              71%            71%           75%
                       30
                                                                                      I feel less pressure to keep up with the latest
                                                                                      fashion trends
                            Jun
                            ‘20
                                    Jul
                                    ‘20
                                           Oct
                                           ‘20
                                                   Nov
                                                   ’20
                                                          Feb
                                                          ‘21
                                                                  May
                                                                  ‘21
                                                                         Oct
                                                                         ‘21
                                                                                Feb
                                                                                ‘22
                                                                                                                                                   Intention to return to pre-pandemic visitation
                                                                                                                       61%
                                                                                                                                                   frequency (in six months’ time)                                   Shopping/
                                                                                                                                                                                                                       retail
                                                                                      I am more likely to repair things than replace them                                                                                              64%            66%           68%
                                                                                                                                                                        Sydney      Melbourne       Brisbane
                                                                                                                      59%
                      Long term changes expected16                                                                                                         Return to
                      Agree/strongly agree that their life will significantly                                                                         pre-pandemic                                                    Dining/
                                                                                      I feel less pressure to keep up with the latest gadget and
                      change in the long-term as a result of the pandemic             technology trends
                                                                                                                                                          frequency     64%            70%           70%             hospitality
                                                                                                                                                    of visiting once
                                                                                                                                                    a week or more
                                                                                                                                                                                                                                       66%            69%           66%
                       70                                                                                           56%
                       60           54%     53%
                                                                         52%          Brands have become less important in all my                         Return to
                             50%
                                                           47%
                       50                                                             purchase decisions                                              pre-pandemic                                                 Entertainment/
                                                                                                                                                       frequency of                                                    leisure
                       40
                                                                                49%
                                                                                                                    55%                                      visiting   74%            79%            76%                              55%            58%           56%
                                                   43%            43%
                                                                                                                                                      once a month
                       30                                                                                                                                   or more
                                                                                      It has made me realize I have more clothes than I
                            Jun     Jul    Oct     Nov    Feb     May    Oct    Feb
                            ‘20     ‘20    ‘20     ’20    ‘21     ‘21    ‘21    ‘22   really need
                                                                                                                 50%                               While work will remain the key reason for high frequency       This suggests that while Australians are still attracted to
                                                                                                                                                   visits to the CBD in the near future (63% of those who         their CBD, it also underscores a nationwide challenge.
                                                                                      I am buying more things because it makes me                  visited the CBD at least weekly plan to return to the          People are not planning to head into the city with the
                                                                                      feel happy                                                   CBD on a weekly basis in six months’ time), dining and         same frequency they once did.
                                                                                                      29%                                          hospitality, shopping and retail will also drive high levels
                                                                                                                                                   of revisitation on a monthly basis.                            In Sydney, travel restrictions during the pandemic forced
                                                                                                                                                                                                                  many people to rediscover their local areas. As hybrid
                                                                                                                                                                                                                  workplaces support more people to work from home, at
                                                                                                                                                                                                                  least for some part of each week, local areas and high
                                                                                                                                                                                                                  streets have become a much bigger competitive threat
                                                                                                                                                                                                                  to CBD precincts than at any other time during the last
                                                                                                                                                                                                                  three decades.
FLICKING THE SWITCH

                                                                                                                                                                                                                                                                                FLICKING THE SWITCH
16                    16. EY, Future Consumer Index, February 2022                                                                                 17. EY Future Consumer Index, February 2022                                                                                     17
FLICKING THE SWITCH Research and insights to help Sydney's CBD turn the lights on a new era
The ‘local area awakening’ has de-positioned the CBD in       Why did people visit the CBD pre-pandemic?         Attitudes towards the Sydney CBD                                         Sentiment towards the Sydney CBD
                      the minds of many, but not all, Sydneysiders. Responses
                      are polarised between two extremes: those who say they                                                                                                                           NET                                                                    NET
                                                                                                                                       Perceptions of the Sydney CBD                                            Things you have been missing
                      ‘don’t feel the need to return to the CBD to find great            Work        14.5% of Sydney’s workforce                                                                      Agree                                                                  Agree
                      experiences’ (32%); and those who are ‘more likely to visit                    headed to the CBD for work
                                                                                                                                       I’m proud of the way the CBD is a showcase                               The Sydney CBD has a lot of open air and green
                      the CBD for activities than they did pre-COVID’ (35%).                         each weekday prior to the
                                                                                                                                       for Sydney                                                               areas where I can spend time outside
                                                                                                     pandemic.18

                      Positive and negative perceptions                                                                                16%       53%                          23%              6%      69%      13%    51%                         22%           13%          64%

                                                                                        Arts and     With the Sydney Opera House,
                                                                                                                                       I’ve always loved spending time in the Sydney CBD                        I am looking forward to the buzz that comes with
                         “The vibe of the city is really special… different              culture     Sydney Theatre Company, Art
                                                                                                                                                                                                                being amongst lots of different people in the
                         kinds of people, entertainment, food … I think that’s                       Gallery of NSW, Museum of
                                                                                                                                       16%       52%                          22%              8%      68%      Sydney CBD
                         really cool.”                                                               Contemporary Art and more, the
                                                                                                     CBD was a culture magnet.
                         Age 25-34, no children, lives less than 30 minutes                                                                                                                                     13%    44%                     27%               12%          57%
                                                                                                                                       There’s always something new to experience
                         from CBD, works in CBD
                                                                                                                                       in the Sydney CBD
                                                                                +      Pitt Street   The open-air shopping                                                                                      I am more likely to visit the Sydney CBD for
                                                                                                                                       14%      52%                      25%                   8%      66%      activities than I did pre-COVID (e.g., dining, live
                                                                                          Mall       experience attracted
                                                                                                     shoppers looking for high-end                                                                              music, arts and culture, etc.)
                         “It’s a central meeting point… you can just get a                           and luxury labels.                The Sydney CBD is an ideal destination to spend
                         train to the CBD and meet up.”                                                                                                                                                         9%    27%          34%                   26%                  36%
                                                                                                                                       quality time with groups of friends or family
                         Age 18-24, no children, lives more than 30 minutes
                         travel time to the CBD, does not work in the CBD                                                              13%      50%                     25%               11%          63%
                           +                                                            Dining       With high quality restaurants
                                                                                                                                                                                                                Features of the Sydney CBD
                                                                                                                                                                                                                                                                              NET
                                                                                      experiences    and unique bars, the CBD was      I love the experience of being in the Sydney CBD                                                                                      Agree
                                                                                                     well positioned for special       around people from all over Sydney
                                                                                                     occasions and experiences.                                                                                 I love the diverse range of experiences you can have
                         “There are a lot of premium and boutique stores
                                                                                                                                                                                                                in different parts of the Sydney CBD, at different
                         that are a bit expensive and don’t offer deals. It’s                                                          13%      49%                    27%                 9%          62%
                                                                                                                                                                                                                times of the day
                         not attractive to me.”
                         Age 45-54, has children, lives more than 30                                                                                                                                            15%      59%                               20%                74%
                         minutes travel time to the CBD, does not work in              Signature     Spacious parks and generous
                                                                                                                                                                                                       NET
                         the CBD                                                        events       open plazas made the CBD          Comparison to other areas
                                                                                                                                                                                                      Agree     The Sydney CBD is full of energy and is a vibrant
                                                                                                     the natural home for festivals,
                                                                                -                                                                                                                               destination for people like me to visit
                                                                                                     parades and pop-up events.        The Sydney CBD offers much more diverse
                                                                                                                                       experiences than my local area
                                                                                                                                                                                                                15%      50%                         25%           9%         65%
                         “Some people might not go to the CBD because
                                                                                                                                       21%            49%                     19%          9%          70%
                         they can’t get home if trains don’t go past midnight.
                                                                                                                                                                                                                The Sydney CBD isn’t as appealing to visit for leisure
                         Not everyone can afford taxi rides to get home.”
                                                                                                                                                                                                                as it was before the pandemic
                         Age 25-34, no children, lives less than 30 minutes                                                            There’s something special about going to
                         from CBD, does not work in the CBD                                                                            the Sydney CBD compared to other places
                                                                                                                                                                                                                8% 30%               29%             27%               6%     38%
                           -
FLICKING THE SWITCH

                                                                                                                                                                                                                                                                                       FLICKING THE SWITCH
                                                                                                                                       14%      52%                      24%                   9%      65%

                                                                                                                                                                                                                   Strongly     Agree        Neither        Disagree        Strongly
                                                                                                                                       I don’t feel the need to return to the                                      agree                     agree nor                      disagree
                                                                                                                                       Sydney CBD to find great experiences                                                                  disagree

                                                                                                                                       6% 27%               31%         30%                     6%     32%

                                                                                                                                         Strongly       Agree     Neither           Disagree         Strongly
18                    18. Terrill et all, Grattan Institute, 2018, p.14                                                                  agree                    agree nor                          disagree                                                                             19
                                                                                                                                                                  disagree
A TIME FOR
                                    The COVID-19 pandemic presented
                                    opportunities for people to reflect and reimagine
                                    their lives. Now, as we emerge from lockdowns                                   of Sydneysiders
                                    and adjust to the ‘new normal’, our city centre             39%                 excited about

                      REDISCOVERY
                                    can be a place of re-awakening and rediscovery.                                 visiting the CBD ...
                                    Positively, two in five Sydneysiders (39%) are very
                                    or extremely excited to revisit the CBD. Two in
                                    three (65%) say there is something special about                                Are looking forward
                                    the CBD, and 70% agree that it offers much more               57%               to the buzz of the
                                    diverse experiences than their local area.                                      CBD

                                                                                                                    Always something
                                       “I think just the general experience [of the CBD]          66%               new to experience
                                       is so much more attractive to me. You could                                  in the CBD
                                       do the exact same thing for two days but have
                                       completely different experiences just because
                                                                                                                    Ideal place to spend
                                       of the amount of diversity and the different
                                       people you can meet. Whereas, sometimes in                 63%               quality time with
                                                                                                                    others
                                       suburban areas things can feel a bit repetitive,
                                       but I never seem to get that feeling in the CBD.”
                                       Age 18-24, no children, lives less than
                                       30 minutes from the CBD, works in CBD               Top CBD associations

                                                                                           Is a fun place to be
                                                                                                                                   79%

                                                                                           The best dining options for
                                       “There are a lot of other suburbs around            special occasions
                                       the CBD and where I live that have great
                                       restaurants and bars … accessibility for me and
                                                                                                                                  77%
                                       my friends is a consideration – suburban areas
                                       can sometimes be better with the high chance        The best fine dining options
                                       of being able to park if driving.”
                                                                                                                                  77%
                                       Age 18-24, no children, lives less than
                                       30 minutes from the CBD, works in CBD
                                                                                           Easy to get there from my
                                                                                           home during the day
                                                                                                                                  77%

                                                                                           The widest range of dining options
FLICKING THE SWITCH

                                                                                                                                           FLICKING THE SWITCH
                                                                                                                                 76%

20                                                                                                                                            21
Enthusiasm for the CBD is significantly higher among   Other groups more likely to return                          What would encourage office workers                        Top five strengths and weaknesses
                      younger Sydneysiders, who stated that they are more                                                                back in?
                      likely to visit the CBD than they did pre-COVID.       People with children under 18                                                                                          The CBD is the best place for ...

                                                                                                   42%                                   More flexible working hours to eliminate rush hour          1   Fine dining options
                      Now and then: Who is more likely to visit                                                                                           34%
                                                                                                                                                                                                     2   Experiencing the arts
                      Sydney’s CBD for activities than pre-COVID?            CBD workers
                                                                                                     46%                                 Annual subsidies for public transport                       3   Special occasion dining
                        18-24                                                                                                                             33%
                                                                                                                                                                                                     4   Access to the best range of bars
                                                 49%                         Aboriginal and Torres Strait Islander people
                                                                                                           57%                           City worker memberships with unique value adds              5   High-end shopping
                        25-34                                                                                                            from partners
                                                48%                          Culturally and linguistically diverse people                              19%
                                                                                                                                                                                                    My local area is the best place for ...
                                                                                                       49%
                        35-44                                                                                                                                                                        1   Easy access from my home at night
                                               42%                                                                                       The CBD undoubtedly faces stiff competition from            2   Easy access from my home during the day
                                                                                                                                         areas closer to home. Prior to the pandemic, the CBD
                                                                             The response from CBD office workers is heartening,
                        45-54                                                                                                            was positioned strongly for the best fine dining, bars      3   Relaxation
                                                                             as this segment of Sydneysiders says it is significantly
                                         29%                                                                                             and culture. It remains the preferred option for special
                                                                             more likely to visit the CBD for cultural activities than
                                                                                                                                         occasions and high-end shopping. However, local areas       4   Value for money
                                                                             pre-COVID. Office workers are keen to re-immerse
                        55-69                                                                                                            have the trump card of convenience as well as being
                                                                             themselves in the buzz of the city, but they are looking                                                                5   Everyday shopping, green areas and natural spaces
                                                                                                                                         places to connect with other local people.
                                    23%                                      for workplaces and experiences that are worth
                                                                             the commute.
                        70 plus                                                                                                                                                                     The CBD’s biggest weaknesses are ...

                                   19%                                                                                                                                                               1   Lack of shops for everyday items
                                                                                “I’d like to return to the office to see people             “It’s a central meeting point for me and my
                                                                                and catch up – I miss those interactions!                   friends – we all live quite spread out across            2   Poor value for money
                                                                                Team bonding events and company events                      Sydney and it’s [the CBD] really easy… you can
                                                                                will certainly encourage people to come in.”                just get a train to the CBD and meet up.”                3   Few green areas and natural spaces
                          Total:
                                         35%                                    Age 25-29, no children, lives less than 30
                                                                                minutes from the CBD, does not work in CBD
                                                                                                                                            Age 14-17, lives less than 30 minutes from the
                                                                                                                                            CBD, does not work in CBD
                                                                                                                                                                                                     4   Hard to get home at night

                                                                                                                                                                                                     5   Not a relaxing place to be

                                                                                                                                                                                                    My local area’s biggest weaknesses are a lack of…

                                                                                “I miss it and would love for it to come                                                                             1   Places to experience the arts
                                                                                back – I definitely won’t hold back once we
                                                                                are allowed.”                                                                                                        2   The best high-end shops
                                                                                Age 18-24, no children, lives less than
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                                                                                                                                                                                                                                                             FLICKING THE SWITCH
                                                                                                                                                                                                     3   Theatre or arts venues
                                                                                30 minutes from the CBD, works in CBD
                                                                                                                                                                                                     4   Fine dining options

                                                                                                                                                                                                     5   Access to the best live events

                                                                                                                                                                                                    See Appendix 3 for a graphical representation of these
                                                                                                                                                                                                    strengths and weaknesses.

22                                                                                                                                                                                                                                                              23
The CBD is currently a place of occasion and experience.                                                                          Strengths of Sydney’s CBD (when compared to suburban areas)
                      While local areas aren’t always vibrant, exciting or places
                      for new or memorable experiences, they are places where
                      people can feel connected to others.                                                                                                DIVERSITY                                                UNIQUE DINING EXPERIENCES
                      This is arguably the biggest opportunity for Sydney’s                                                                               “The vibe of the city is really special. There’s lots    “Most of my trips to the CBD were leisure – we’d
                      CBD – to amplify its place in the city as a connector, not                                                                          of areas that are really different, different kinds of   be going to something or seeing something… [I’m]
                      just as a physical meeting place but as a foundation for                                                                            people, different kinds of entertainment, different      attracted to bars that have some sort of novelty.”
                      diverse, inclusive and connected communities.                                                                                       food, a different vibe … I think that’s really cool.”    Age 20-29, Identifies as Aboriginal or Torres Strait
                                                                                                                                                          Age 14-17, lives less than 30 minutes travel time        Islander (ATSI), has children, lives 30 minutes or
                                                                                                                                                          from the CBD, does not work in CBD                       more from the CBD, does not work in CBD

                      Experience perceptions by area
                                                                                                                                                          ACCESSIBILITY AND DIVERSITY                              ICONIC VIEWS AND SCENERY
                                                                     Sydney CBD              My local area             Other areas in Sydney              “I want somewhere easily accessible and look for         “You have some really good places with good
                                                                                                                                                          something I haven’t experienced before … new             views – you don’t have that in the Inner West.”
                                                                                                                                                          cuisines, new restaurants, new locations. I think        Age 30-39, Culturally and linguistically diverse
                                    It is vibrant and
                                                                                   8         -7                                    -1                     the CBD often has a lot more to offer in terms of        person (CALD), no children, lives less than 30
                                       full of energy
                                                                                                                                                          accessibility and new experiences when compared          minutes from the CBD, works in CBD
                                                         Exciting,                                                                                        to suburban areas.”
                              It feels like a place to   a place for
                                                                                                                                                          Age 25-29, no children, lives less than 30 minutes
                                                         something             7             -6                                    -1
                       celebrate something special                                                                                                        from the CBD, does not work in CBD
                                                         special

                        There is always something
                                                                               6             -6                                             1             “The key aspects I consider are ease of access           CONVENIENT PLACE TO MEET
                               exciting happening
                                                                                                                                                          and variety of offering. For example, I try to avoid
                                                                                                                                                          driving around Sydney when I can, so it appeals          “It’s still a convenient place to catch-up with my
                             A great place to have                                                                                                        to me that I can easily get to the Sydney CBD by         friends, mostly during the week as people are
                                                                           2                      -3                                        1
                           memorable experiences                                                                                                          walking or train or ferry. I also like that the CBD      around there.”
                                                                                                                                                          has a lot of different shopping choices on offer         Age 20-29, CALD, no children, lives less than 30
                               Is a place where you
                                                                                                                                                          from Westfield to QVB and Pitt Street Mall. There        minutes from the CBD, works in CBD
                           can have many different                         2                  -5                                                4
                                                                                                                                                          are also so many different bars and restaurants to
                                        experiences                                                                  A place for
                                                                                                                                                          choose from which you can easily walk to.”
                                                                                                                     discovery                                                                                     “It’s hard to imagine not going there at all. Even if I
                                      It is a place to                                                                                                    Age 30-49, no children, lives less than 30 minutes       don’t work there, I’d still go there to catch up with
                                                                           1                 -7                                                     6
                                discover new things                                                                                                       from the CBD, does not work in CBD                       my friends on weekends or on Fridays.”
                                                                                                                                                                                                                   Age 30-39, CALD, no children, lives less than 30
                                      I feel proud to                                                                                                                                                              minutes from the CBD, works in CBD
                                                                       0                               2                           -2
                                   take people here

                        It appeals to people like me             -4                                        6                       -2                     UNIQUE PRECINCTS
FLICKING THE SWITCH

                                                                                                                                                                                                                                                                             FLICKING THE SWITCH
                                                                                       A place for                                                        “I like that the CBD has so many unique precincts
                                                                                       connection                                                                                                                  SPECIAL OCCASION EVENTS
                                                                                                                                                          all with a different vibe and offering. You have
                          I love spending time here             -5                     with like               11            -5                           The Rocks, Circular Quay, Pitt Street Mall, Darling      “There’s an enhanced feeling of ‘going out’ when
                                                                                       minded
                                                                                                                                                          Harbour and Barangaroo.”                                 you head into the city rather than the local pub.”
                                                                                       people
                       It is a place where I can feel                                                                                                     Age 30-49, no children, lives less than 30 minutes       Age 25-29, no children, lives less than 30 minutes
                                                      -15                                                       15                      0                 from the CBD, does not work in CBD                       from the CBD, does not work in CBD
                         connected to other people

24                                                                                                                                                                                                                                                                              25
Strengths of suburbs (when compared to the CBD)

                        CONVENIENCE                                              GREATER COVID CONCERNS IN CBD
                        “Staying local is generally more convenient for          “Once restrictions ease, I would still be more
                        me than travelling to the CBD… for me, the CBD           inclined to visit local bars around my area to avoid
                        is treated as a bit of a special occasion (often for     crowds etc. and the risk of going into another
                        birthdays etc.).”                                        tough lockdown.”
                        Age 25-29, no children, lives less than 30 minutes       Age 25-29, no children, lives less than 30 minutes
                        from the CBD, does not work in CBD                       from the CBD, does not work in CBD

                        MORE CASUAL EXPERIENCES                                  LESS CROWDS
                        “I do prefer quieter pubs like at Balmain or Surry       “The older I get, the less I like crowds and I hate
                        Hills. I think pubs and restaurants in local areas can   lining up for anything. So for example, if I’m just
                        be a bit more relaxing than the CBD … I don’t have       going to the movies alone I would prefer to go to
                        to dress up!”                                            Fox Studios to avoid the crowds.”
                        Age 30-49, no children, lives less than 30 minutes       Age 30-49, no children, lives less than 30 minutes
                        from the CBD, does not work in CBD                       from the CBD, does not work in CBD

                        INSUFFICIENT PUBLIC TRANSPORT TO SUPPORT                 MORE AFFORDABLE
                        NIGHT LIFE
                                                                                 “The CBD can learn from other suburban areas to
                        “Sydney is quite spread out… some people might           be more affordable.”
                        not go to the CBD because they can’t get home if         Age 18-24, no children, lives 30 minutes or more
                        trains don’t go past midnight. Not everyone can          from the CBD, works in CBD
                        afford taxi rides to get home.”
                        Age 25-29, CALD, lives less than 30 minutes from
                        the CBD, works in CBD
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                                                                                                                                        FLICKING THE SWITCH
26                                                                                                                                         27
What makes the CBD a magnet depends on where                  For people who live more than 30 minutes away from         There is also a group of Sydneysiders who live 30 minutes   Conversely, those less than 30 minutes away perceive
                      people live. The perception of the CBD improves with          the CBD, these new concerns are compounded by              or more from the CBD who now perceive it to be too far      the CBD to be a much more convenient and accessible
                      proximity. Conversely, enthusiasm for the CBD tapers          pre-existing deterrents, notably the expense of public     away and too much effort.                                   destination.
                      as the resident radius widens. This suggests activities       transport. This is particularly the case for people
                      and offerings that appeal to Sydneysiders from suburbs        with children.
                      closest to the CBD will be most successful.                                                                                 “Prior to the pandemic, going to the CBD was fairly         “A good core meeting place for friends.”
                                                                                                                                                  easy – hop on the light rail and I was there within         Age 25-29, no children, lives less than 30 minutes
                      People who live 30 minutes or more from the CBD are              “[I] usually drive and park in Darling Harbour as          an hour. Now the CBD seems so far away and out of           from the CBD, does not work in CBD
                      most concerned about catching public transport in a post-        it’s cheaper. I haven’t caught a bus in years… If I’m      reach. I feel less connected to it because of the lack
                      pandemic landscape and the time it will take to commute          going in with my family, it’s cheaper to drive.”           of connection and because I haven’t been into the
                      to the CBD for work.                                             Age 30-49, has children, lives 30 minutes or more          CBD for quite a while.”
                                                                                       from the CBD, does not work in CBD                         Age 30-49, has children, lives 30 minutes or more
                                                                                                                                                  from the CBD, does not work in CBD                          “It’s [the CBD] very important – it’s one of the main
                                                                                                                                                                                                              areas where I catch up with my friends as it’s a mid-
                         “I think I’d still have to use the train to get into the                                                                                                                             point for many of our locations.”
                         CBD given how far away I live, but at the moment                                                                                                                                     Age 25-29, no children, lives less than 30 minutes
                         I’m not really comfortable taking that option.”               “I would drive and pre book Wilson Parking to save                                                                     from the CBD, does not work in CBD
                         Age 30-49, has children, lives 30 minutes or more             money. However, with added toll costs on M4 and            “If it takes more than an hour of travel, it would
                         from the CBD, does not work in CBD                            M5 splitting into the M8, I would probably avoid the       have to be a big reason to make the trip for myself,
                                                                                       city entirely nowadays.”                                   these days.”
                                                                                       Age 18-24, no children, lives 30 minutes or more           Age 30-49, has children, lives 30 minutes or more
                                                                                       from the CBD, works in CBD                                 from the CBD, does not work in CBD                          “The CBD is fairly important – I live quite close and
                                                                                                                                                                                                              it’s a short bus or tram ride into the city for meals,
                         “I wouldn’t want to go on public transport at                                                                                                                                        theatre shows, cinemas and shopping, and it’s a
                         this time.”                                                                                                                                                                          convenient meeting point for my friends and I.”
                         Age 30-49, has children, lives 30 minutes or more                                                                                                                                    Age 30-39, no children, lives less than 30 minutes
                         from the CBD, does not work in CBD                                                                                                                                                   from the CBD, does not work in CBD
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                                                                                                                                                                                                                                                                       FLICKING THE SWITCH
                         “The travel time is my biggest concern –
                         pre- pandemic traffic was out of control… when you
                         add two-plus hours per day for travel you become
                         resentful of the loss of your time.”
                         Age 30-49, has children, lives 30 minutes or more
                         from the CBD, does not work in CBD

28                                                                                                                                                                                                                                                                        29
Enthusiasts for the Sydney CBD
                      I am more likely to visit the Sydney CBD for activities than I did pre-COVID (Agree / Strongly agree)

                      Baulkham Hills and Hawkesbury (incl. Castle Hill,              Northern Beaches (incl. Dee Why, Newport, Palm Beach
                      Kenthurst, Dural etc.)                                         etc.)
                                                     26%                                                     21%

                      Blacktown (incl. Beaumont Hills, Rouse Hill, Lalor Park,       Outer South West (incl. Campbelltown, Ingleburn,
                      Seven Hills etc.)                                              Glenfield etc.)
                                                                     40%                                                                 46%

                      City and Inner South (incl. Darlinghurst, Surry Hills, Potts   Outer West and Blue Mountains (incl. Penrith, Oxley Park,
                      Point, Broadway, Newtown etc.)                                 Kingswood etc.)
                                                                     40%                                             28%

                      Eastern Suburbs (incl. Randwick, Clovelly, Bondi, Bondi        Parramatta (incl. Bella Vista, Harris Park,
                      Junction, Maroubra etc.)                                       Westmead etc.)
                                                              34%                                                                     43%

                      Inner South West (incl. Hurstville, Arncliffe, Bexley,         Ryde (incl. Putney, Epping, Denistone,
                      East Hills etc.)                                               West Ryde etc.)
                                                                     40%                                            27%

                      Inner West (incl. Abbotsford, Balmain, Strathfield,            South West (incl. Liverpool, Blacktown, Prairiewood,
                      Leichhardt, Haberfield etc.)                                   Ashcroft etc.)
                                                              34%                                                                  41%

                      North Sydney and Hornsby (incl. Asquith, Waverton,             Sutherland (incl. Caringbah, Port Hacking, Kirrawee,
                      Greenwich, Crows Nest, Chatswood etc.)                         Miranda etc.)

                                                   25%                                                               28%

                      CBD worker
                                                                               46%

                      The CBD is positioned the strongest perceptually for           People are saying loud and clear: “We don’t need to
FLICKING THE SWITCH

                                                                                                                                                 FLICKING THE SWITCH
                      special occasions and experiences. But COVID has               travel into the CBD for casual dining, to catch up with
                      changed the competitive set – and feeling safe, relaxed        friends and family, or to spend time in natural or green
                      and within a short distance of home is more important          spaces when we can do this so close to home and at
                      than it once was. As one respondent noted: “I don’t think      less cost.”
                      anything can ‘substitute’ the CBD, but I think people
                      are opting for their own local areas to support small
                      businesses at the moment.”

30                                                                                                                                                  31
The CBD had core strengths prior to the pandemic,
                                                                                                                                        but it wasn’t meeting its full potential.                        COVID-19 measures and mandates

                                                                                                                                        Pre-COVID deterrents now loom larger, especially as
                                                                                                                                        people seek affordable and safe experiences. The cost
                                                                                                                                        and convenience of the CBD remains one of the biggest                          want COVID-19 vaccination
                                                                                                                                        barriers, with the expense and availability of parking              54%        mandates to remain
                                                                                                                                        frequently featuring in qualitative feedback.

                                                                                                                                        The lack of late-night entertainment plays a particularly
                                                                                                                                                                                                                       want visible reinforcement of
                                                                                                                                        prominent role in deterring younger Sydneysiders and                61%        COVID-19 measures
                                                                                                                                        CBD workers. Illustrating this, more than a third (37%) of
                                                                                                                                        25-34-year-olds (24% among all Sydneysiders) believe
                                                                                                                                        places in Sydney’s CBD close too early.                          New variants of COVID-19 point to the need for a
                                                                                                                                                                                                         prevailing health and safety ‘halo’ over the city for
                                                                                                                                        The lack of green space is another obstacle. While               some time to come.
                                                                                                                                        green space doesn’t drive visitation, it does play a role
                                                                                                                                        in deterring 43% of Sydneysiders from the CBD. This
                                                                                                                                        criticism of the CBD is more pronounced among older
                                                                                                                                                                                                      What features will draw and deter
                                                                                                                                        residents who align the best green spaces with their local
                                                                                                                                        area. We know that ‘outdoor’ and ‘green’ have become          people in the future?
                                                                                                                                        more important to people through the pandemic and it is
                                                                                                                                                                                                      The collective challenge for governments, asset owners,
                      Old obstacles loom larger in the new normal                                                                       a critical dynamic as the CBD is redefined into the future.
                                                                                                                                                                                                      employers, community groups, hospitality and retail
                                                                                                                                                                                                      businesses is to dismantle the biggest barriers while also
                                                                                                                                                                                                      dialling up the pull factors that will entice people back in
                        CULTURE                                                   AFFORDABILITY AND ACCESSIBILITY                          Research undertaken by MIT’s Real Estate
                                                                                                                                                                                                      greater numbers and frequency.
                        “There are lots of museums in the city, but               “All the places with the best views and in the           Innovation Lab in 2021 found an
                        they almost act like old dusty libraries that             best locations are too touristy and you can’t
                        nobody visits.”                                           afford them.”                                            8.9% to 10.5%                                                 Obstacles are opportunities
                        Age 45-54, children, lives more than 30 minutes           Age 35-44, children, lives less than 30 minutes
                                                                                                                                           “statistically, economically and positive                     • Financially exclusive: High-cost retail and
                        from the CBD, does not work in CBD                        from the CBD, works in CBD
                                                                                                                                           transaction premium” for offices with high                      hospitality make the CBD less appealing to low-
                                                                                                                                           street-level greenness.                                         income households and those whose budgets may
                                                                                                                                                                                                           have been hit by the pandemic.
                                                                                                                                           These buildings also realised a 5.6% to 7.8%
                                                                                                                                                                                                         • ‘Bigger’ occasions only: Sydneysiders can
                        SAFETY                                                                                                             rental premium.19
                                                                                  INCLUSION                                                                                                                see the CBD as a place of luxury, prestige and
                        “I don’t like the CBD at night – it’s not even late but                                                                                                                            high-end hospitality, making them more likely to
                                                                                  “It would be really good if they took a stance to
                        you meet so many strange people yelling at you...”                                                                                                                                 reserve the CBD for special occasions.
                                                                                  involve Indigenous culture. At the moment they do
                        Age 35-44, children, lives less than 30 minutes                                                                 Alongside the established barriers are a host of new
                                                                                  just enough not to get told they’re doing nothing.”                                                                    • Business focused: People feel existing CBD
                        from the CBD, does not work in CBD                                                                              ones. The notion of safety has extended beyond social
                                                                                  Age 25-34, children, lives more than 30 minutes                                                                          offerings, with limited opening hours and
                                                                                                                                        issues and now includes the health risk of being in crowds
                                                                                  from the CBD, does not work in CBD                                                                                       weekday operations, are focused on corporate
                                                                                                                                        or busy areas. The shift to working from home, coupled
                                                                                                                                                                                                           office workers.
FLICKING THE SWITCH

                                                                                                                                                                                                                                                                     FLICKING THE SWITCH
                                                                                                                                        with a growing appeal for local areas, has also taken
                                                                                                                                                                                                         • Unreliable transport: While the CBD is
                                                                                                                                        some of the gloss off the CBD.
                        PUBLIC TRANSPORT                                                                                                                                                                   acknowledged as Sydney’s central hub and
                                                                                                                                                                                                           an accessible meeting point, public transport
                        “Transport should operate for longer and people
                                                                                                                                                                                                           is perceived as infrequent, unreliable and
                        should be able to rely on it.”
                                                                                                                                                                                                           unsupportive of late-night visitation.
                        Age 25-34, no children, lives more than 30 minutes
                                                                                                                                                                                                         • Tourist trap: The CBD is a place where people
                        from the CBD, works in CBD
                                                                                                                                                                                                           from all walks of life can come together, but
                                                                                                                                                                                                           high prices set for tourism can alienate locals
32                                                                                                                                      19. Yang et al, The Financial Impact of Street-Level                                                                            33
                                                                                                                                                                                                           considering cost, convenience and places tailored
                                                                                                                                            Greenery on New York Commercial Buildings,                     to their needs.
                                                                                                                                            July 2021
To experience Sydney’s CBD is to peer through a                But Chinatown is favoured for casual dining and value
                      kaleidoscope. Each precinct and pocket of the city is          for money, while Barangaroo, The Rocks and Circular
                      the backdrop for an endless series of small experiences        Quay offer the best special occasion dining experiences.
                      or fleeting moments that evolve with the time of day           Sydney’s actual CBD is known for its shopping and
                      or night. Just one tiny twist of the kaleidoscope and          cultural activities, rather than casual dining or a special
                      Sydney’s CBD looks different. And like a prism held to         occasion. YCK has a strong association with casual
                      the light, each person sees the CBD through a unique           dinner and drinks with work colleagues. Darling Harbour
                      set of eyes.                                                   is seen as a place to discover something new – whether
                                                                                     that’s a major event or a pop-up attraction. The Rocks is
                      We know the personality of each precinct – and people’s        favoured as a place to spend time with family.
                      perceptions of that – are important. Sydneysiders are,
                      in general, positive about each precinct in the CBD.
                      Not one area rated below a respectable 7.6 out of 10
                      for experience.

                         How do Sydneysiders rate each CBD precinct?

                         Visitation and experience – Sydney CBD overall, individual CBD precincts, other areas of Sydney and local area
                         (% proportion of respondents who visited each precinct in the last few years)

                                                                                                                                     Avg.

                         My local area                                                                                     100%      8.1

                         Other areas of Sydney (excluding Sydney CBD)                                                      100%      7.8

                         Sydney CBD overall                                                                                100%      8.3

                         Circular Quay                                                                              80%              8.5

                         Darling Harbour                                                                            78%              8.5

                         Sydney CBD (excl. other areas listed)                                                   72%                 8.3

                         The Rocks                                                                            67%                    8.6

                         Barangaroo (incl. King Street Wharf)                                              59%                       8.7
FLICKING THE SWITCH

                                                                                                                                                   FLICKING THE SWITCH
                         Chinatown                                                                      52%                          7.8

                         Surry Hills, Darlinghurst, Kings Cross, Potts Point areas                    48%                            8.2

                         Pyrmont (excl. Darling Harbour)                                            42%                              8.1

                         YCK Laneways (York, Clarence, Kent Streets precinct)                   33%                                  7.6
34                                                                                                                                                    35
Occasion associations for future visits by precinct                                                       There are also practicalities that drive people’s decisions   But the message is clear: A one-size-fits-all reactivation
                                                                                                                                to visit the CBD. It may be easy to get home from Circular    strategy can’t be applied to the entire CBD. One
                                                                                                                                Quay or YCK at night if you live on the lower North           opportunity is to create sub-brands within the CBD.
                        SYDNEY CBD                        SURRY HILLS,                        THE ROCKS                         Shore, but not Surry Hills, for example. Similarly, if you
                                                          DARLINGHURST, KINGS                                                   live in Bondi, Surry Hills will be easy to get to and from,
                        • To spend the whole day                                              • To visit iconic Sydney
                                                          CROSS, POTTS POINT AREAS                                              but Pyrmont may not be. Depending on the occasion,
                          undertaking different                                                 landmarks
                                                          • To shop at boutique/                                                people select the precinct based on a range of criteria:
                          activities                                                          • Fine dining for lunch or
                                                            independent shops                                                   accessibility, the home base of the people they are
                        • To shop at boutique/                                                  dinner
                                                                                                                                meeting and the travel route; followed by dining appeal;
                          independent shops               • Casual drinks with work           • To discover something new       vibrancy and open-air space.
                        • To shop at the best high-end      colleagues
                                                                                              • For cultural activities
                          shops                           • For a casual dinner
                        • To shop at a range of           • To go to nightclubs
                          clothing and fashion shops      • For live music and                                                  Precinct perceptions
                        • For cultural activities           entertainment
                        • For major special events/
                          activations                                                                                              GEORGE STREET                                                  DARLING HARBOUR
                                                                                                                                   “The light rail is good because it makes that huge             “We went there once. They had music playing,
                                                                                                                                   space right in the middle of the city… a large                 we saw some friends, played in the playground.”
                                                                                                                                   walking area which is always full.”                            Age 35-44, children, lives more than
                        YCK LANEWAYS (YORK,               PYRMONT                             DARLING HARBOUR                      Age 45-54, children, lives less than 30 minutes                30 minutes travel time to the CBD, works in CBD
                        CLARENCE, KENT ST                                                                                          from CBD, does not work in CBD
                                                          Pyrmont is not strongly aligned     • To visit great attractions
                        PRECINCT)
                                                          to any occasion associations, but   • To do something with the
                        • Casual drinks with              has the potential to be known         family
                          work colleagues                 for::
                                                                                              • For major special events/                                                                         CENTRAL CBD
                        • Casual meal with work           • Casual drinks with colleagues       activations                        WYNYARD
                          colleagues                      • To go to nightclubs                                                                                                                   “Lots of big high rises that are businesses… nothing
                                                                                              • To visit iconic Sydney             “Wynyard has all the fancy bars….”                             to spark interest.”
                                                          • To spend the whole day              landmarks                          Age 18-24, no children, lives less than 30 minutes             Age 45-54, children, lives more than 30 minutes
                                                            undertaking different
                                                                                                                                   from CBD, works in CBD                                         travel time to the CBD, does not work in CBD
                                                            activities
                                                          • Live music and
                                                            entertainment

                                                                                                                                   PITT STREET MALL                                               SURRY HILLS, DARLINGHURST AND POTTS POINT
                                                                                                                                   “We used to go there at Christmas for the David                “Oxford Street is unique with all its op shops and
                                                                                                                                   Jones window displays – it was a novelty event.”               diversity of people.”
                        CIRCULAR QUAY                     BARANGAROO                          CHINATOWN                            Age 55-64, no children at home, lives more than                Age 25-34, no children, lives less than 30 minutes
                                                                                                                                   30 minutes travel time to the CBD, does not work               from CBD, does not work in CBD
                        • To visit iconic Sydney          • Fine dining for lunch or          • Casual meal with work
                                                                                                                                   in CBD
                          landmarks                         dinner                              colleagues
                        • For cultural activities         • For a special occasion            • Casual meal with friends
FLICKING THE SWITCH

                                                                                                                                                                                                                                                           FLICKING THE SWITCH
                        • Fine dining for lunch or        • To discover something new           and family
                          dinner                                                              • For a casual dinner                                                                               HAYMARKET AND CHINATOWN
                        • To visit great attractions                                          • For a casual lunch                 CIRCULAR QUAY
                                                                                                                                                                                                  “Dinner in Haymarket is always good – if we stay at
                                                                                              • To bring together family and       “You have some really good places with good views              the Green Southern then we go to Haymarket with
                                                                                                friends who live in different      – you don’t have that in the Inner West.”                      all the Asian restaurants.”
                                                                                                areas                              Age 35-44, children, lives less than 30 minutes                Age 55-64, no children, lives more than 30 minutes
                                                                                                                                   from CBD, works in CBD                                         travel time to the CBD, does not work
                                                                                                                                                                                                  in CBD
36                                                                                                                                                                                                                                                            37
Key needs to encourage return

                                                                                                                                                            Safety (hygiene)            Visibility/             Alternative travel         Open air spaces               Accessible
                                                                                                                                                                                     transparency of                 options               where possible                amenities
                                                                                                                                                                                     efforts in place

                                                                                                                                                           How will COVID-19 concerns influence future visitation?

                                                                                                                                                             HYGIENE                                                           RULES
                                                                                                                                                             “I think there’s a lot of stigma with COVID being                 “I’d hope that [COVID] rules are more enforced –
                      When people were asked about future visits to the        Perceived time that COVID safe measures                                       spread in the city, with lots of the population,                  when you’re driving around people aren’t following
                      CBD, COVID-19 was an obvious concern, reflecting
                                                                               should remain in place                                                        so I might avoid it for a while. I don’t think my                 the rules. I wouldn’t be going to the CBD if people
                      that visible and transparent efforts around safety                                                                                     parents will let me go there much either unless I’m               aren’t doing the right thing.”
                      and hygiene are important to people.                                                                                                   really careful.”                                                  Age 45-54, children, lives more than 30 minutes
                                                                                                                                                             Age 14-17, no children, lives more than 30 minutes                travel time to the CBD, works in CBD
                      Travelling on public transport is the biggest concern    Visibility of crowding (e.g. real time updates of where
                                                                                                                                                             travel time to the CBD, does not work in CBD
                      and is a clear response to fear of catching the virus.   crowds are in the city)
                      Driving will be the preferred mode of transport
                      when visiting the CBD in the “near future”.              16%      18%         22%           25%           19%

                      Respondents were also looking for parking                                                                                                                                                                RESTRICTIONS
                                                                               Extensive cleaning procedures and letting the public know                     COMMUNITY COMPLIANCE
                      solutions – subsidies and increases to capacity.         they are in place (e.g. on public transport, public areas, etc.)                                                                                “Concerns? Not really… not in terms of catching
                      Open, outdoor dining spaces and shopping                                                                                               “Knowing businesses are complying with current                    COVID. If we’re going to catch it, we’re going to
                      experiences were also popular solutions.                 8% 15%         23%           23%           31%                                regulations, widespread awareness of regular                      catch it. I just need restrictions to be lifted.”
                                                                                                                                                             cleaning, hand sanitiser and no-touch crossings,                  Age 25-34, no children, lives less than 30
                                                                                                                                                             would be helpful.”                                                minutes from CBD, works in CBD
                                                                               COVID-19 vaccination mandates (e.g. showing vaccination
                                                                                                                                                             Age 35-44, children, lives more than 30 minutes
                                                                               status at restaurants, bars, events, etc.)
                                                                                                                                                             travel time to the CBD, does not work in CBD

                                                                               12%    21%           21%       27%               19%

                                                                                                                                                                                                                               TRANSPORT
                                                                               Visible enforcement of COVID-19 regulations (i.e. mask
FLICKING THE SWITCH

                                                                                                                                                                                                                                                                                      FLICKING THE SWITCH
                                                                               wearing, social distancing, checking-in)                                                                                                        “I would probably drive in more so I guess
                                                                                                                                                             REASSURANCE                                                       reasonable parking fees, specials [would address
                                                                               15%     23%            23%           27%             13%                      “Could reassure me by putting in social distancing                my concerns]”.
                                                                                                                                                             rules and limiting the amount of people on public                 Age 45-54, children, lives more than 30 minutes
                                                                                                                                                             transport.”                                                       travel time to the CBD, does not work in CBD
                                                                                 Don’t         For the        For the       For more        Indefinitely     Age 55-64, children, lives less than 30 minutes
                                                                                 need to be    next 3         next 6        than 6                           from CBD, does not work in CBD
                                                                                 in place      months         months        months
                                                                                 anymore                                    (but not
                                                                                                                            indefinitely)
38                                                                                                                                                                                                                                                                                       39
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