The precinct refers to a bubble in which live music and entertainment in venues would be protected "through enhanced planning, building and noise regulations".

"An entertainment precinct provides a mechanism to protect a lively night-time economy, the venues that operate, and the live music scene," an ACT government spokesperson said.

An entertainment action plan released by the Environment, Planning and Sustainable Development Directorate in 2019 called on the government to establish up to eight such entertainment precincts across Canberra.

The idea has resurfaced in the Better Regulation report released last week, which reported the results of an attempt by the territory government to overhaul regulation of small and medium enterprises, making it easier for business to operate.

The report identified a city entertainment precinct as one of its priorities, outlining that government should "support the work to amend planning legislation to provide for a city entertainment precinct".

Those amendments were currently being considered as part of the ACT planning review.

"A designated entertainment precinct will require complementary regulatory changes across planning, environment protection and other regulations (e.g. noise, trading, and liquor governance) to support live music venues," a spokesperson said.

David Marshall, chair of the Canberra Region Tourism Leaders Forum, said: "In Canberra, we find that particularly after dark ... restaurants are certainly open, but in many cases, they close reasonably early.

"So we've had feedback that you're trying to get dinner or something in Civic at 10 o'clock or anywhere in Canberra, and it's virtually impossible."

Mr Marshall said entertainment precincts were a way to enliven areas of the city and boost business, but that thorough consultation would need to be done to "ensure that everybody benefits".

"The focus is really twofold: it's making sure that if we do this, that businesses get a return on the investment, which will be required," he said.

"But then we provide the atmosphere, the precinct itself, ensuring it's safe, ensuring there are transport options, all those sorts of things to make the experience itself one that people will enjoy and repeat."

Alex Dyriw, co-owner of Garema Place cocktail bar Hippo Co, said his business was faring well in the COVID recovery, estimating trade had returned to 75 per cent of pre-pandemic levels.

As a small venue, he said he had not faced some of the challenges of other businesses in the area.

Mr Dyriw said even as the workforce became less centralised, businesses in Civic could still continue to draw in patrons.

"People, if they are at home and whatever else, are still going to want to go catch up with [others] and go out," he said.

"So a venue like ours, it's somewhere where people go to have a quiet drink, have a chat."

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Mr Marshall said establishing a successful precinct would require thorough planning.

"There's a great deal of interest and support for a more lively nighttime economy, but everyone's a little bit weary because if you open at night and no one turns up, the cost factors are quite significant," he said.

"But in turn, people won't turn up unless you've got the product available, and so this is where there needs to be a great deal of thought about the marketing of these initiatives."

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