City of Melbourne Lord Mayor Sally Capp revealed the latest figures, which come from the Local Government Safe Communities' Network Measuring the Australian Night Time Economy Report 2016-17.

"Melbourne doesn't shut up shop when the sun goes down. The value of our Night Time Economy has increased by $197 million in turnover to $3.2 billion," the Lord Mayor said.

"Over the last 30 years we've transformed Melbourne into a dynamic 24-hour city. We brought residents back into a city and our partnerships with the State Government on major events such as White Night have put Melbourne on the map as a truly global city."

"It's particularly pleasing that drink sales are down given that we now have up to a million people visiting the city each day."

The data mirrors the findings released last week by the Australian Bureau of Statistics, which showed that Australians are drinking less alcohol than at any time in past 50 years.

The report shows Melbourne's total Night Time Economy grew by seven per cent from 2016-2017, with jobs growth of 7.4 per cent to more than 30,000 employees. Food establishments accounted for 71 per cent of employment and 65 per cent of turnover.

Chair of the City of Melbourne's Small Business, Retail and Hospitality portfolio, Councillor Susan Riley said Council has been working hard to activate the city at night.

"We're continuing to work with Victoria Police and licensees to ensure people feel safe in the city throughout the evening and into the night.

"The availability of 24-hour public transport on weekends and more family-friendly entertainment means there are more reasons than ever to enjoy the city at night."

There are 2,360 cafes or restaurants in the City of Melbourne, with almost 200,000 seats.

Read the full report here.