Plans are underway to revive an over-regulated night-time economy to make it easier for businesses to operate and help their customers feel safer.
A rapid review of NSW nightlife has highlighted over-regulation, transport and safety as barriers to the hospitality industry's success.
It also revealed the home to 8.2 million residents lags Victoria and Queensland in the after-dark economy, leaving significant unrealised potential in NSW.
Urban sprawl, high living costs and service gaps in public transport, particularly at night, have been limiting its potential.
Safety is also an issue, though views differ on policing.
Some believe a heavy police presence reassures patrons and deters anti-social behaviour, while others suggest seeing more police leads to worse perceptions of safety.
Rather than replacing police, the review suggested they could be supplemented by night-time "hosts" - uniformed, visible and approachable teams who could help people find their way around or intervene in low-level conflicts.
The review also recommended a "sludge" audit - examining the "unnecessary frictions" making it harder for businesses to operate.
"Our aim is to reduce red tape and uncertainty, streamline approvals and encourage innovation," NSW Productivity and Equality Commissioner Peter Achterstraat said.
"The social and economic returns from getting these settings right are substantial."
But the impact of since-repealed "lockout laws", which has helped fuel an appetite for reform, showed the danger of sweeping change.
A snap response to alcohol-fueled violence, the lockout laws introduced in 2014 forced central Sydney bars to close doors to new patrons at 1.30am and stop serving drinks at 3am.
Several venues in Kings Cross shuttered, blaming the laws, before the rules were repealed in 2021.
Night-time Economy Minister John Graham says over-regulation, including by councils, acts as a handbrake on hospitality industries.
"We have to make it easier and less costly for hospitality businesses to boost vibrancy and productivity," Mr Graham said.
Operators involved in the Night Time Industries Association have long warned about the inefficiencies of the system.
"Streamlining these systems will reduce costs, cut delays, and build upon the progress made so far," chief executive Mick Gibb said.
"This review sets out a clear pathway to reduce red tape, support live music and entertainment, improve transport and safety, modernise policing approaches, and build stronger precincts."
