Drinks turfed in favour of food in Melb

Melbourne's heart is booming the way the city wants it to boom.

People are drinking less alcohol in the CBD but they're buying so much more food and other goods the city's retail and hospitality sector was worth a record $5.5 billion last year.

That's up 23 per cent up on 2013, says a report released on Thursday by the City of Melbourne and Victorian government.

It's the night-time economy that's leading the charge with increased foot traffic on weeknights and weekends.

"The astonishing thing to me is that it's booming in the way we want it to boom," Melbourne Mayor Robert Doyle says.

"Sales of food are well up, sales of alcohol are down and violence against the person is down too."

Liquor licences may be extended at some venues.

Mr Doyle said smaller venues that serve food and have a good track record with patron behaviour are being encouraged to apply for extended operating licences.

"We've actually said we're going to have a normalised culture of the city late at night," he said.

Public Transport Minister Jacinta Allan said 24-hour public transport on weekends, which started after the reporting period, would further boost retail and hospitality in the centre.

"(It) extends out the opportunity for people to grab a bite to eat after a show rather than before," she said.

Fewer retailers are operating than in 2013 (down three per cent) but employee numbers and occupied retail space have risen slightly.

In the city's 17,000 hotel rooms, the occupancy rate remained high at 86 per cent.

Another 9500 hotel rooms are planned or under construction.