bdo.huCountryside hotels have high hopes for SzÉP
Countryside hotels in Hungary were only moderately helped by the country's EU presidency. Developments are stalling and only the newly introduced holiday voucher may bring hoteliers some relief.
Guest nights during the first nine months increased by approximately 3-4% compared to the same period of last year. However, the crisis is definitely far from over, as overall revenues are at the same level as in 2007. The occupancy rate nationwide was around 43% on average, the lowest in the region. The proportion of foreign guests has increased in comparison to domestic tourists, but the overall 6.5% increase in foreign tourism was mainly the result of official and related visits by EU officials and their personnel.
Beyond Budapest, developments have been confined to four-star hotels in the countryside, mainly spas. Though it did not stop entirely, construction activity remains low: only a handful of new hotels have been completed, the development of which were already started. The growth generated by the country's turn at the EU presidency gradually faded in the second half and did not recover from the summer peak season either. The number of tourist nights spent by foreign and domestic tourists at Lake Balaton decreased by 2.3% on the year.
Hoteliers have welcomed the introduction of the Széchenyi Recreation Card (SzÉP), a voucher that can be topped up and used at hotels, restaurants and theaters. The turnover in holiday vouchers will depend on how widespread the use of the newly introduced cards will be. Experts believe it will be more likely to have a beneficial effect on turnover in 2012.
To spur demand, state tourism agency Magyar Turizmus Zrt could step up its campaign activity, but the fate of the HUF 2 billion budget it is supposed to receive from the state for next year also looks grim. For countryside hotels, one way out of the sluggish business could be online booking. According to a survey by consulting firm BDO Hungary, one-third of guest nights are booked via the internet, and online booking has grown 20% annually in the past three years. If this growth rate keeps up, it may help hotels to weather the double dip. ZsV
Media: Budapest Business Journal
Date: 09.12.2011
