20 Mar 2026

For the first time ever, an Australian city has topped Time Out's annual ranking of the world's 50 best cities.

Melbourne has officially been named Time Out’s best city in the world for 2026, marking the first time an Australian city has ever claimed the top spot.

Melbourne rose from fourth place in 2025 to take the number one position, outperforming heavyweights including Shanghai, Edinburgh, London and New York.

The result draws on surveys from more than 24,000 residents across 150 cities, assessing 44 criteria including food, nightlife, culture, affordability, diversity, happiness and overall liveability.

Melbourne excelled in nearly all categories, with 94% of locals rating the food scene highly and 92% praising our arts and culture.

This recognition isn’t just a point of pride. It is also an opportunity for Victorian small businesses to leverage the increased global attention and to capitalise on increased visitor demand.

If you’re near a major event in Melbourne, consider:

  • adjusting staffing and stock levels during peak visitation windows
  • offering pre‑orders or reservations where possible
  • creating themed menus, pop-up offerings or event-related specials.

If you’re in regional Victoria, get involved by:

  • highlighting how close you are to Melbourne and how to get to your region
  • creating event‑paired weekend packages
  • promoting local food, produce, nature and cultural experiences to appeal to interstate and international visitors.

Big events benefiting small business

Melbourne’s extensive major events calendar is a driving force behind its global success and an engine of economic benefit for local businesses. Melbourne’s events generate $3.3 billion annually, a figure expected to grow following this accolade.

If topping Time Out’s best city rankings wasn’t enough, Melbourne has already broken attendance records for the Australian Open (AO) and Formula 1 Australian Grand Prix (F1). Over 1.3 million people attended the 2026 AO and 480,000 at the F1 earlier this month.

Major Melbourne events have played an integral role in attracting visitors to the state over the years.

  • In 2023, Melbourne’s Spring Racing Carnival brought in 67,555 visitors to the state.
  • In 2024, the F1’s record-breaking crowds resulted in an estimated 9 out of 10 hotel rooms in Melbourne occupied, keeping the city’s cafes, restaurants, bars and shops heaving.
  • In 2025, the Australian Open saw visitors book 442,887 nights in Victorian hotels, with the average daily spend per visitor $243.92.

The calendar doesn’t slow down, as Melbourne’s ‘Mad March’ continues with:

There’s a host of major events still to come across the year, all promising to bring more interstate and international visitors. Mark your calendars with:

Making the most of Melbourne’s events

For Victorian small businesses, Melbourne’s ranking is more than just a title. It’s an opportunity to capitalise on increased visitors to the city and across the state.

Take this opportunity to plan your marketing and business around the increased international and interstate interest and position your business as part of what makes Melbourne number one in the world.