In Hungary of Great Interest to European and Global Tourists
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ARAB – HUNGARIAN ECONOMIC FORUM – 2012 BUDAPEST Tourism has developed into a global driver of economic development in recent years and the European Union remains the world’s most popular destination. The attractiveness of Eastern Europe has also grown significantly. There are TOURISM a large number of sites in Hungary of great interest to European and global tourists. The significance of the tourism sector is supported by official figures showing that the industry accounts for 8.5% of Hungary’s total GDP with multiplier effects. in Hungary Almost 400,000 people are employed in the sector. Within the tourism industry, Hungary is gaining territory in the health, conference and historical subsectors due to the geothermal, geographical and historical resources. TOURISM ARAB – HUNGARIAN ECONOMIC FORUM – 2012 BUDAPEST Introduction • The National Tourism Development Strategy (NTDS) (20052013) ensu res that tourism development is prioritized by the Hungarian govern ment. • Government bodies and HITA are ready to provide effective support for tourism investments. OVERVIEW The country is blessed with a remarkable range of tourism offers, making it an important destination for health, historical and conference tourism. Domestic tourism development represents a further opportunity to develop golf and hunting tourism, castles and theme parks. At the same time, there are already a large number of foreign companies present in Hungary, which tends to inspire confidence in new investors. The growing importance of the health industry is increasingly noticeable all over the world and Hungary is in a position to gain from this trend. Thanks to the country’s highly developed network of thermal and wellness spas, the thermal and medicinal springs that can be found all over the country are REASONS TO INVEST IN HUNGARY already an important part of the health tourism industry. Around 80% of • Steady increase in foreign visitor arrivals. Neighbouring countries are the country’s surface has access to thermal water and favourable geothermal also potential suppliers due the growth of their economies. characteristics, which puts Hungary ahead of its competitors, such as Japan, • Hungary’s relevance as a tourist destination will increase due to its Iceland, Italy and France. favourable geographical features, its security and easily accessible infra structure. Furthermore, Hungary is generating outstanding revenues in the dental tou • Unique geothermal characteristics of Hungary contribute to the growth rism sector. The high standard and reasonable price of medical treatments in of wellness and health tourism. Long traditions and knowhow in the Hungary means that visitors can combine an enjoyable city break in Hungary usa ge of thermal water also attracts foreign tourists. with a thrifty trip to the medical centre. • Great potential in conference tourism in the regional capitals. Buda pest has already grown into a popular MICE destination. Historical tourism includes cultural and world heritage sites, as well as • G rowing occupancy rate in the 4* and above category accommoda protecting natural values and national parks, equestrian and village tourism, tion. gastronomy and wine tourism, and special festivals and events. • Six cultural and two natural locations in Hungary have been assigned World Heritage status. These include the wine region of Tokaj, the city centres of Budapest and Pécs, the Abbey of Pannonhalma, the tradi tional village of Hollókő, the national park in Hortobágy, the Fertő lake landscape and the stalactite caves of Aggtelek. In addition Hungary’s natural treasures are well protected: 10% of the territory of Hungary is under environmental protection. • There is still growth potential in quality accommodation (especially in the countryside) due to underdevelopment of the sector and a lack of financial capital. • Investment projects are available in the field of theme parks, thermal, golf and casino tourism, and castle renovation, please see the database of the Hungarian Investment Projects (HIP). • C ompetitive wages: less than half of the Western European average according to Eurostat. TOURISM ARAB – HUNGARIAN ECONOMIC FORUM – 2012 BUDAPEST Conference tourism also plays a significant role in Hungary. Based on sta tistics published by the highly respected International Congress & Convention Association (ICCA) in 2011, Budapest ranked 11th among the world’s top conference destinations. The development of strategic destinations is a top priority both in areas that are yet to maximize their potential and those that already draw the largest numbers of tourists. The objective and expected results of the National Tourism Develop- ment Strategy (NTDS) The strategy for the health industry aims first at the optimal and efficient exploitation of the country’s thermal water and geothermal potential. The second focus is on organizing a network from the related production and service sectors. The objective of the health industry’s development is to create Elements of the strategy: a distinct, national industrial sector emphasizing the positive attributes of the 1. Health tourism country. Both human and natural benefits can provide strategic advantages to exploit. There are a number of strong synergies between the sectors of the 2. Utilization of geothermal energy health industry. 3. Horticulture 4. Beauty industry, cosmetics 5. Mineral water production 6. Pharmaceuticals industry 7. Biotechnology, nanotechnology 8. Medical appliance engineering 9. Balneology 10. Horizontal aspects – health industry hubs 11. Education related to the health industry 12. Specialized construction industry This programme intends to provide the Hungarian economy with cuttingedge developments across diverse fields, emphasizing the uniqueness of the coun try. It will lay the foundation for job creation, higher incomes and an increase in the gross domestic product. ALREADY INVESTED TOURISM ARAB – HUNGARIAN ECONOMIC FORUM – 2012 BUDAPEST Budapestwood Studios Movie Entertainment Park INVESTMENT SUMMARY Studio Walk, merchandising and commercial services on site (restaurants, CONTACT shops, food courts etc.). INFORMATION Studio City, due to its unique streetscape design can accommodate shops, Industry restaurants, street shows etc. Bpwood Movie Entertainment Tourism Park Limited Liability Company Executive summary Attractions are to be designed and operated by a specialist US theme park development company. The planned Movie Entertainment Park is an American style moviethemed Ms Ilona Kecskés multifunctional centre, a combination of commercial and entertainment deve Managing Director Provided there is sufficient demand, a Studio Hotel & Apartments (220 hotel lopment including a hotel. A unique attraction in Central Europe and the only rooms and 80 medium sized apartments) can also be developed. There are of Bpwood Ltd. moviethemed park in Europe directly connected to a real, working movie potential real estate development opportunities on the neighbouring sites of Mobile: +36 30 625 3599 studio. 3040 ha which will serve as a venue for a new entertainment and tourism Email: FUNDING centre for Budapest. [email protected] REQUIREMENT (EUR) The Park is a mustsee attraction comprising of a Film Park (movie themed rides and shows) and Studio City (unique streetscapes resembling London, Description of your product(s) and/or services Hungary, 1056 Budapest Rome, Paris, New York and Arabic, Mediterranean and other street styles TOTAL: 354 000 000 EUR An internationally recognized theme park development company, Total Fu Szerb utca 17. 1. em. 17. with shops and restaurants). which comprises: ture Concepts Ltd. (“TFC”) (managed by Peter Alexander, former Director of Phone/Fax: +36 1 214 0895 Project Management of Walt Disney EPCOT, Vice President of Planning and The 26 ha site is within Budapest, easily accessible by air, road and public Film Park and Studio City: Development of Universal Studios and Executive Producer of Six Flags Theme city transportation. The project provides 1,5002,000 work places. www.budapestwood.hu 274 000 000 EUR Parks) has been involved and prepared a detailed, industry standard feasibility The Park would attract 3.5 million visitors per year and the project has been study which declared the project feasible. declared feasible by an internationally respected theme park development Studio Hotel: 30 000 000 EUR company. The execution requires 18 months of planning and preparation (12 months of theme park and technology design plus 6 months of construction permis Further real estate acquisition Investment objective sion and approval processes). Construction and tests require approximately of 30 – 40 ha for 50 000 000 EUR Financial investor 18 months. Expected collaboration with investor The opening of Budapestwood Studios Movie Entertainment Park to the pub Joint Venture partner, Capital increase lic takes place at the end of the third year after signing the financing agree Amount 354 million Euro in exchange for 75% of the company share ment with the investor(s). Investment return indicator Any other relevant information ROI 11.5% There are two alternatives for investors: (i) become the majority owners of Stage of development Bpwood Ltd. or (ii) participate only as real estate investors in the Project. Startup company The Budapestwood Project’s four founders have an extensive track record in real estate development and arranging and managing project financing, two of them are owners of the neighbouring Raleigh Filmstudios Budapest,