Counsel Assisting Kristen Edwards told the court the friends he was with at the bar did not believe he was significantly affected by alcohol and were shocked when they learned he had been ejected.
The Hayez family has travelled from Belgium for the two-week hearing into the circumstances of his disappearance.
The court heard Mr Hayez had accessed directions on Google to his hostel but Google data revealed he walked in the opposite direction.
He spent seven minutes at cricket nets before he took a dark track and took a turn into bush.
Ms Edwards said police believe he may have decided to walk up a grassy side and dropped his phone.
“The working theory of the police is that he tried to climb the cliffs near Cozy Corner, fell and was swept out to sea,” Ms Edwards said.
Mr Hayez was described as a funny and friendly young man but was also known to be cautious.
Ms Edwards told the court his family believed he would not have climbed the dangerous slope unless someone was there to encourage him.
His phone has never been found and the court heard attempts to access his Snapchat, WhatsApp and Instagram accounts had so far been unsuccessful, which is an issue the inquest will look at.
“This information could genuinely and without exaggeration could save lives,” Ms Edwards said.
The court heard there was no evidence to support various rumours about self-harm, drugs, a beach party and other theories.
“Almost all the evidence is to the effect that Theo had a great time in Australia but he was also ready to go back.”
Readers seeking support and information about suicide prevention can contact Lifeline on 13 11 14.
