According to the data, only 1,130 nightclubs are left operating across the UK, and there are fears the current economic climate could push the numbers down further.
The Midlands and North of England have been hardest hit, with some key independent businesses being lost, all of which play a significant role in supporting the wider night time economy.
With the culmination of pandemic debt, growing energy bills, workforce challenges, supply chain, increased insurance premiums, landlord pressures and product cost increases, the NTIA warns that the segment, which generates £112bn in revenue per annum, is facing a 'perfect storm'.
Operating cost pressures coupled with consumers with less disposable income have seen the early stages of a recession, with slowing ticket sales and visitor frequency.
“The Government needs to recognise the economic, cultural, and community value of clubs and the wider night time economy,” says Michael Kill, CEO of the NTIA.
“We must protect these businesses, using every means possible, and recognise their importance before it's too late.”
Kill notes that night time economy businesses were one of the quickest sectors to rebound during the 2008 financial crash, adding that they have a huge part to play in the regeneration of high streets in towns and cities across the UK post pandemic.
“Beyond the generation of footfall through trade, domestic and international visitors to clubs support the local economy in secondary and tertiary purchases through accommodation, travel and retail.
“It is also key to recognise that these businesses play a key part in people's decision making process from choosing a university or college to influencing investment choices for businesses relocating or expanding, to accommodate for a young workforce.”
Kill's calls for further Government support have been backed by Labour's Shadow Leveling Up Secretary, Lisa Nandy, who has previously said that reopening once loved nightclubs in struggling towns and city centres could help to revive the high streets and boost the economy.