Despite the effects of the Covid-19 crisis, we can expect an economic boost in the hotel market soon.
According to Pénzcentrum, tourism in Europe is showing a quicker recovery than expected. While there had been discouraging data from 2021, those can be attributed to travel restrictions, which are no longer in effect. Data from Q1 2022 shows much more positive results already.
This can be explained by the fact that, after two years of being closed up, travelling has become a number one priority for many.
Turizmus.com reports on the current state of the hotel market. They write that the hotels that did not send away their employees during the pandemic have it easier now because of the ongoing labour shortage others are struggling with, and on top of that, all hotels have to account for the threefold rise in maintenance costs.
The difficulties make their mark on the prices. In several cases, rooms are more expensive than before covid hit. And soon, hotels that accepted the loan moratorium offered by the government will feel the downside of the moratorium, which will cause even more problems for them. However, Hungary’s tourism is quite an open one in the market; it is also open to solutions like long-term apartment renting or student hotels, but these ideas still need some improvement.
Domestic tourism is getting more and more prominent, and the significant sports events and festivals that Hungary is hosting during the summer will boost it even more.
The only sector where a boost is not expected during the summer is conference tourism, but the same phenomenon will happen in this sector probably in the autumn.
Since 2020, despite covid, there has been continuous development in the hotel market – the number of new hotels opening is on the rise, with two 4-star hotels with 286 rooms that have already opened in 2022, and 19 new hotels with 1,750 rooms planned for the remainder of the year. It seems that investors are aligning their plans with pre-covid goals. Pénzcentrum expects these goals to be reached already by the end of 2023.
Source: Pénzcentrum, Turizmus.com