Between 2004 -- when Hungary joined the EU -- and 2013, the tourism sector received unrefundable resources of some HUF 330bn or 4.3 percent of total EU funding made available for Hungary, Deputy State Secretary for Tourism Viktória Horváth told MTI. This amount, she added, helped complete 1360 projects over the past ten years.

She stressed that the sector has changed profoundly in this period, it is however difficult to assess the effects of EU membership as the global economic crisis during the past years have considerably affected the tourism market.

She pointed out that the country made the first step through the first Széchenyi Plan toward gaining a place on the European and global tourism map. In 2001 and 2002, some HUF 40bn of Hungarian fiscal resources were channelled to the sector, through which some 2000 projects were supported. One of the key results of the Széchenyi Plan was that it made tourism stakeholders realize the fact that provided the Hungarian tourism sector receives adequate funding it can join the market leaders in international tourism and become one of the growth engines of the Hungarian economy.

She called attention to the fact that among the projects funded over the past ten years there were large castle and spa development projects, smaller services sector projects, but the local tourism bodies have also received funding.

As the Deputy State Secretary emphasised, there were prioritized development projects in the field of urban development, healthcare tourism, cultural and religious tourism as well as eco-tourism. She singled out projects related to the Városliget Skating Rink, the Benedictine Abbey of Pannonhalma, the Balatonfüred city centre reconstruction and the baths of Handúszoboszló and Zalakaros.

She pointed out that joining the Schengen area has benefited the sector from various aspects. On the one hand it made incoming arrivals easier for guests from the area’s countries and the common visa policy of Schengen states made visits from outside the area better organized and more transparent. Belonging to the EU, she added, provides an image of safety and stability, which two factors are crucial for the tourism sector.

In the opinion of Viktória Horváth, the improved quality of accommodations is unquestionably a result of EU resources: since the EU accession, the share of four-star hotels increased from 21 percent to 40 percent in the country. Participation in projects such as the European Capital of Culture and European Destinations of Excellence (EDEN) has also been possible due to EU membership.

According to statistics she quoted, the number of guests increased by 40 percent, from 6.3 million to 8.8 million over the past decade in Hungary, while the number of tourism nights was up by 23 percent, from 18.6 million to 22.8 million. Accommodation fee revenues soared from HUF 167bn to HUF 297bn, an increase of 78 percent, between 2003 and 2013.

Viktória Horváth stressed that the structure of incoming tourism has been transformed, as the weight of traditional markets from the west has diminished and that of neighbouring countries, such as the Czech Republic, Romania, Poland, Slovakia and especially Russia, has increased.

The price of an average hotel room was HUF 11 239 in 2003, whereas it was HUF 15 180 in 2013. This increase, she stated, is a modest one from the aspect of the profitability of enterprises, therefore there is ample room for growth in this field. On the other hand, the room occupancy ratio has improved significantly in this period, from 36.1 percent to 42.1 percent at accommodation establishments, while the same indicator regarding hotels was up from 43.7 percent to 49.8 percent, she said.

The Deputy State Secretary said that tourism has also been among the sectors involved in EU disputes: the infringement procedure related to the regulation of fringe benefits also involves the SZÉP Card, “The EU considers the issuance criteria of the Card to be too strict and discriminative, whereas the Government believes that this kind of rigour is necessary to ensure that the money of card holders is safe.” Thanks mainly to the popularity of these cards, last year the domestic tourism sector expanded significantly – by some 10 percent regarding revenues – accordingly, the system has fulfilled expectations and therefore the Government does not intend to change it.

As a whole, Viktória Horváth pointed out, the advantages provided by EU membership outweigh the significance of such disputes.

(Ministry for National Economy)