The development of the night-time economy has improved the destination competitiveness of many big cities. Income and tourism experiences, in particular, have been the most affected by this change. However, managing the potential negative impacts and harmonising the interests of stakeholders represent challenges. The purpose of this article is to show that a destination can only be competitive if it can serve the long-term well-being of both visitors and locals. In this research the authors provide an overview of the problems of the night-time economy and analyses the available solutions. Urban politics and local political forces are determinant factors that influence the management of a creative city. Furthermore, they focus on the solutions provided by social innovation. which involves the learning and cooperation of locals. In this paper, all these aspects are analysed in the context of Budapest's ruin pub quarter, which is nowadays the focus of debates as the negative effects of the night economy have not yet been effectively resolved. The impact of the night-time economy is examined through qualitative interviews in the quarter with locals and visitors to crystalize the most important issues and solutions as well as by mapping the characteristics of recent civil initiatives which are the driving force of social innovation due to the limited effectiveness of the measures of urban policies.
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