George Street in the Rocks will become a permanent pedestrian and outdoor dining zone as the state government pushes forward with attempts to revamp Sydney’s public spaces following a string of successful revitalisation programs that have re-energised city streets since the pandemic.

Foot traffic in the city heritage precinct has reached 90 per cent of pre-COVID-19 levels despite fewer international tourists, but business turnover has risen more than 15 per cent on previous figures with the expansion of al fresco drinking and dining options along the road.

The government poured $66 million into street-based programs – including the al fresco dining package and streets as shared places initiative – in 112 council areas between May 2020 and December 2022, with the hope of reviving the city and helping businesses through years of uncertainty.

While CBD office occupancy rates are still just 59 per cent and some of Sydney’s high streets struggle with zombie shopfronts, a Transport for NSW report prepared for the end of the year has pointed to the programs’ success: more than half a million people across the state took part in various initiatives while the equivalent of 4000 car park spaces were returned to the public.

Its analysis also estimates 13,500 people were engaged in more than 300 local projects, with 2800 hospitality workers and 3300 creative workers employed.

Kiersten Fishburn, the transport department’s deputy secretary for its new cities and active transport division, said the evaluation was “evidence that we can and should reimagine what our places, streets and open spaces can look like”.

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The shared streets program, for example, prompted councils to trial street closures, add public art, convert car parks, introduce cycleways, widen footpaths and green their spaces. Ninety per cent of those projects have retained key elements afterwards.

In Parramatta, Phillip Lane was improved with lighting, plants, live music and additional dining spaces over eight weekends, which participating businesses said contributed 30 per cent to sales and allowed them to employ up to two extra staff on event days. The council will seek to make some of those factors permanent.