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Entertainment investors grapple with changing consumer preferences
Revellers at a Dar es Salaam nightclub. Photo | File
What you need to know:
- Experts advise investors to avoid building permanent structures, emphasising the need for flexibility in response to rapidly evolving entertainment trends
Dar es Salaam. With technological advancements and shifting consumer behaviours, entertainment investors are being urged to adopt strategic approaches, avoid building permanent structures, and move away from outdated business models.
According to experts, the rise of the digital lifestyle has led to a shift in entertainment preferences, with consumers increasingly favouring outdoor experiences over traditional nightclubs.
Speaking to The Citizen yesterday, the President of the Association of Real Estate Professionals of Tanzania (Arepta), Mr Andrew Kato, said that nightclub operators face significant challenges due to privacy concerns arising from social media exposure.
“The strategic response to these changes is crucial. Investors must adapt and avoid relying on outdated practices,” Mr Kato stated.
He said that some nightclub businesses continue to struggle despite receiving loans, as banks often overlook the evolving dynamics of the industry.
“There have been significant challenges for real estate investors and nightclub operators, not just in Tanzania, but worldwide. Unfortunately, some people continue to invest and banks provide loans without fully understanding the industry's challenges, particularly for indoor nightclubs,” he said.
Mr Kato cited the United Kingdom’s Night Time Industries Association (NTIA), which reported a sharp decline in nightclubs from 3,144 in 2005 to just 851 today. Between March 2020 and December 2023, 396 nightclubs across the UK shut down—nearly 10 per month—equating to 30 per cent of the total sector.
Real estate expert Ms Trude Hendy said that the trend towards outdoor entertainment began during the Covid-19 pandemic when indoor venues were restricted due to social distancing rules.
“Technology has also shifted entertainment preferences. People now prefer to curate their own music experiences rather than relying solely on DJs,” she said. “For instance, groups of friends can now gather in outdoor spaces with portable speakers, an option that is not always feasible indoors due to space constraints.”
Ms Hendy said that some well-known nightclubs, including one in the basement of Millennium Tower, have closed, reinforcing the need for investors to study market trends before committing to large-scale ventures.
A property management expert, who requested anonymity, advised investors to remain flexible by avoiding permanent structures, as entertainment trends continue to evolve rapidly.
“Both indoor and outdoor businesses face difficulties due to changing habits and technologies. Investors must be smart and ensure their projects remain adaptable,” he said.
He observed that entertainment hotspots frequently shift, citing how Dar es Salaam's nightlife moved from Sinza to Tabata and now to Goba.
“This pattern proves that consumers are constantly looking for new experiences. Investors must be strategic and avoid committing to static locations,” he said.
