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Report on the Record Year REPORT ON THE RECORD YEAR Published by: HUNGARIAN TOURISM AGENCY Dr Zoltán Guller Chief Executive Officer H-1027 Budapest, Kacsa utca 15-23. Design: Mediator Print by: Bonex Press Kft. TOURISM IN HUNGARY 2019 CONTENT Prologue 05 Tourism as the driver of economy 06 Gellért Thermal Bath International outlook 07 Main data on Hungarian tourism 10 Visitor numbers in accommodation establishments 11 Most popular accommodation types and regions 18 Change in main feeder markets 24 Changes in domestic and inbound tourism 28 Meetings Industry key data 34 Competitor analysis 36 What characterises 2020? 38 03 DEAR READER, Over the past four years, the Hungarian From January this year, the National Tourism Agency has strived to Tourism Data Supply Centre covers ensure that tourism, one of the most the entire spectrum of tourist successful sectors of the Hungarian accommodation establishments, economy, achieves better results year which is particularly important after year, and we have set the goal for because prior to 2020, there was no Hungary to become a leading regional monthly data collection on private tourism destination by 2030. and other accommodation. From the outset, digital data supply has The growth rate of Hungarian tourism provided valuable and up-to-date has exceeded both the EU and datasets to facilitate the operation worldwide average for many years. of accommodation establishments Since 2010, the number of inbound and for the Agency to plan marketing tourists has been steadily increasing activities and developments, which are and each year, the activity of domestic essential in the current situation. travellers has also been continuously growing. We were moving faster Now that the challenges are far from towards our goal than we had ever ordinary and entry restrictions make imagined possible. international travel unpredictable, it has become particularly important that This spring also brought about a new tourism in rural Hungary has resumed. situation in tourism, and since March Tourism is a particularly fortunate we have been working to put this sector as although it was quick to strategically crucial sector back on react to the crisis, it has also been the growth path. The Hungarian fast to recover. Government was among the first to announce an action plan to help The Hungarian Tourism Agency is tourism and hospitality; it would have using all means possible to ensure been impossible to take action any that its international partners remain faster, nor were measures of similar continuously informed, a purpose that proportion introduced in the sector is served by this publication. anywhere else in Europe. In order to reboot tourism, instead Yours sincerely, of introducing austerity measures, the Government aided the recovery Dr. Zoltán Guller from the crisis through tax cuts and CEO continued developments, supporting Hungarian Tourism Agency businesses through this difficult period. After all, if there are guests, tourism has everything it needs. 04 05 TOURISM AS INTERNATIONAL TOURIST ARRIVALS 2019 THE DRIVER OF ECONOMY +4.8% +3.6% +3.9% Worldwide Europe Hungary Tourism has grown into one of economic stimulation and job creation Hungary’s major economic sectors, at a rate somewhat above the global Source: UNWTO Tourism Barometer 2020 which plays an important role in both average. GDP production and in employment, as well as in maintaining the balance of Tourism output has been setting payments. Our tourism indicators have records in Hungary every year since been continuously improving since 2010, and in 2019 we closed the best 2010, and 2019 also saw an expansion. tourism year ever. INTERNATIONAL In Hungary, tourism contributes to OUTLOOK Preliminary calculations by the United The World Travel and Tourism Council Nations World Tourism Organization (WTTC) regularly examines the (UNWTO) registered 1.5 billion interna- economic effects of tourism. According tional tourist arrivals in 2019, up 3.8% to their analyses, in 2018 10.4% of the from the previous year. The sector expe- world’s GDP output could be linked to FOREIGN CURRENCY BALANCE OF INTERNATIONAL TRAVEL rienced an even faster growth rate than tourism (considering both direct and the average of the global economy. spill-over effects) and one tenth of all 2018 2019 2019/2018 International tourism revenues grew workplaces are also linked to the sector. by 3.6% in real terms worldwide in 2019, The contribution of tourism to Revenue (EUR million) 5 856 6 480 +10.8% with their value reaching USD 1,460 employment is also increasing billion. worldwide year by year. Expenditure (EUR million) 2 239 2 452 +9.5% Balance (EUR million) 3 617 4 028 +11.5% Source: National Bank of Hungary 06 07 According to the latest 2017 tourism which is also a substantial increase over THE ECONOMIC IMPACT OF TOURISM IN HUNGARY satellite account data, including indirect 11% in 2010. The data shows that over effects, tourism accounts for 10.6% of one third of those employed in tourism total domestic GDP, with a direct con- worked in the hospitality sector, 14% in tribution of 6.7%. The ratio of the value the road passenger transport sector, Estimated Total contribution to GDP (2019) 13.2% 13.2% increased by the multiplier was merely 9.4% in the cultural sector and 9% in the Employment (000s persons) 418 Contribution to GDP 8.7% in 2010, while by 2019, the total accommodation sector. contribution of tourism to GDP reached Total contribution to employment (2017) 9.6% 13.2%. The growing demand of both Tourism is typically the field of small and Source: National Bank of Hungary inbound and domestic tourism year medium-sized enterprises, with about after year, as well as the coordinated 175,000 enterprises operating in the sector-level developments implemented tourism sector, constituting one tenth in recent years which are still ongoing, of the national economy. The economic greatly promote the development of the significance of tourism lies in the fact Hungarian economy. that it is a sector that can be sustained without foreign capital that can be More than 400,000 people are em- profitably operated based on domestic ployed in areas related to tourism, and resources. the contribution to employment is 13%, INTERNATIONAL TOURIST ARRIVALS (MILLION; 2019/2018) 2019 2019/2018 World 1460 +3.6% Europe 745 +3.9% Africa 73 +6.4% America 220 +2.0% Asia 361 +3.7% Middle East 61 +2.0% Source: UNWTO Tourism Barometer 2020 08 09 MAIN DATA ON VISITOR NUMBERS HUNGARIAN TOURISM IN ACCOMMODATION NUMBER AND EXPENDITURE OF TOURISTS ESTABLISHMENTS Balanced inbound and domestic visitor A total of 47,842 commercial accommo- numbers, high revenues and dynamically dation establishments were registered in growing SZÉP Card turnover character- Hungary in 2019, providing guests with a ised the sector in 2019. total of 217,218 rooms and 624,034 beds. 2018 2019 2019/2018 Capacities exceeded those of the previous In a review of the visitor numbers of year by 2%. Expenditure of inbound tourists (HUF million) 1 576 350 1 745 265 +10.7% commercial and other accommodation establishments in 2019, 16.2 million guests There is an approximately equal share of Expenditure of same-day tourists (HUF million) 125 309 149 529 +19.3% spent more than 42 million guest nights domestic and inbound tourism at com- in Hungarian accommodation estab- mercial accommodations, 53% of guests Expenditure of overnight tourists (HUF million) 1 451 041 1 595 736 +10.0% lishments. Guest numbers rose by 4.2% were domestic residents and 47% were Average expenditure of inbound tourists per day (HUF) 17 984 19 001 +5.7% compared to the previous year, while the international visitors, while 51% of guest number of guest nights was 4.1% higher nights were domestic and 49% foreign. Expenditure of domestic overnight tourists (HUF million) 347 421 393 243 +13.2% than in 2018. The numbers show that more tourists came to Hungary in 2019 Although seasonality has declined in Average expenditure of domestic overnight tourists 5762 6634 +15.1% per day (HUF) than ever before. Compared to the 2010 recent years, 14.2% of all guest nights were tourism results, the number of guests still realised in July and 14.9% in August. Expenditure of domestic overnight tourists without VFR and 290 397 336 371 +15.8% hobby (HUF million)* doubled, while the number of guest Average expenditure of domestic overnight tourists per day nights was almost 85% higher. The tourism significance of Budapest 7746 4028 +13.9% without VFR and hobby (HUF)* and its results in 2019 Expenditure of outbound tourists (HUF million) 682 532 746 987 +9.4% 2019 is characterised by dynamic, 9.9% In addition to Hungary, Budapest is also growth in terms of accommodation more popular than ever. In line with the * Data calculated excluding the core motivations of VFR (Visiting Friends and Relatives) revenues (HUF 561.9 billion). nationwide trend, the performance of and hobby-type work. Source: KSH – Hungarian Central Statistical Office +10.7% +13.2% Expenditure of Expenditure of inbound tourists domestic overnight tourists (HUF million) (HUF million) 10 11 Budapest’s tourism is growing steadily The gross accommodation fee revenue year after year. In Budapest, inbound tour- of commercial accommodation estab- ism continues to dominate, with almost lishments in Budapest in 2019 (HUF 90% of guest nights coming from foreign 171.4 billion) significantly exceeded 2018 guests. revenues – by 11.8% – and accommoda- tion fee revenues almost tripled (+184.6%) In 2019, 5.7 million guests visited Bu- compared to 2010. dapest’s commercial and other busi- Párisi Passage, Budapest ness-type accommodation establish- In 2019, the most important feeder ments, spending almost 14.1 million guest markets to Budapest were the United nights. Compared to 2010, both the num- Kingdom, the United States of America ber of guests (+118.4%) and guest nights and Germany.
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