Future of CBD businesses in limbo as workers continue to shun the office

Visitors are countering the slow return of workers to Australia’s five biggest cities as a section of the CBD workforce continues to shun the office.

A new report, released on Sunday by the Tourism and Transport Forum, analysed mobility data on the movement of adults across the Sydney, Melbourne, Adelaide, Brisbane and Perth CBDs.

It found CBD worker numbers in April were still below pre-COVID-19 levels nationally, despite rising in all five cities over the previous 12 months.

Sydney (64%) and Melbourne (65%) were the least recovered for CBD worker visits as the hardest hit by lockdowns and restrictions.

The report from specialist mobility data group DSpark shows some level of working from home may be here to stay, Tourism and Transport Forum chief executive Margy Osmond said.

“This may be our new normal,” she said.

“If that’s the case, we need continued investment in industries beyond traditional office spaces to ensure a vibrant and thriving urban landscape, so CBD businesses don’t suffer.”

Total visitation to the Sydney, Melbourne, Adelaide, Brisbane and Perth CBDs remain below 2019 levels on average, but have been boosted by non-workers returning for nightlife and weekend events.

Evening visits continue to show more robust recovery than lunchtime across all days of the week, with afternoons the least-recovered time in all cities except Melbourne.

Visitors to Perth and Adelaide have often been higher than the pre-pandemic average, while Sydney and Melbourne’s daytime recovery still lags behind other cities.

“Visitors, not workers, are driving this recovery. Their enthusiasm to explore and experience each city’s offerings is what’s propelling their revival,” Osmond said.

Visitation to April compared to pre-Covid levels

Sydney — 77% (+10 in 12 months)

Melbourne — 78% (+7)

Brisbane — 86% (+12)

Adelaide — 94% (+8)

Perth — 97% (+12)

CBD workers to April compared to pre-Covid levels 

Sydney — 64% (+12 in 12 months)

Melbourne — 65% (+9)

Brisbane — 74% (+15)

Adelaide — 82% (+14)

Perth — 87% (+16)

People in CBDs on weekdays and weekends to April compared to pre-Covid levels

Sydney — 80%, 100%

Melbourne — 75%, 101%

Brisbane — 88%, 89%

Adelaide — 93%, 104%

Perth — 94%, 109%

This article was first published by AAP.