26 professional associations unite in opposition to Hungary’s full short-term rentals ban

Twenty-six professional organisations have published their position against a full out ban on short-term rentals in the capital on Turizmus.com.

Full-out ban for short-term rentals?

Acknowledging that short-term rentals were a housing, social, and tourism issue, the associations recommended that the government seek a “compromise between the current regulations and a full-out ban” on homestays.

They argued that tourism in the capital needed “sharing economy” accommodations favored by travelers adopting the “be like a local” trend. A full out ban would be “legal nonsense” and “economically irrational”, they added.

They warned that a full-out ban would result in “big losses” for catering establishments and tourism attractions in the capital and for Liszt Ferenc International Airport.

The associations pressed for a rethink of regulations on short-term rentals based on best practices in other big European cities, surveys, and studies.

Signatory organisations:

• Balatoni Kör (Balaton Circle)
• Balatoni Turizmus Szövetség (Balaton Tourism Association)
• Falusi és Agroturizmus Országos Szövetsége (National Federation of Rural and Agrotourism – FATOSZ)
• Hévízi Turisztikai Nonprofit Kft. (Hévíz Tourism Nonprofit Ltd.)
• Magánvállalkozók Nemzeti Fuvarozó Ipartestülete – NiT Hungary (National Association of Private Entrepreneurs and Hauliers – NiT Hungary)
• Magyar Apartmankiadók Egyesülete (Association of Hungarian Apartment Hosts)
• Magyar Beutaztatók Szövetsége (Hungarian Inbound Tour Operators Association)
• Magyar Bocuse d’Or Akadémia (Hungarian Bocuse d’Or Academy)
• Magyar Cukrász Ipartestület (Hungarian Confectioners Guild)
• Magyar Csokoládé és Édesség Szövetség (Hungarian Chocolate and Confectionery Association)
• Magyar Egészségturizmus Marketing Egyesület (Hungarian Health Tourism Marketing Association)
• Magyar Éttermi Szövetség (Hungarian Restaurant Association)
• Magyar Fesztivál Szövetség (Hungarian Festival Association)
• Magyar Fürdőszövetség (Hungarian Spa Association)
• Magyar Idegenvezetők Egyesülete (Hungarian Tour Guides Association)
• Magyar Nemzeti Gasztronómiai Szövetség (Hungarian National Gastronomy Association)
• Magyar Sétaszövetség Egyesülés (Hungarian Walking Association)
• Magyar Szállodák és Éttermek Szövetsége (Hungarian Hotel and Restaurant Association)
• Magyar Turisztikai Szövetség Alapítvány (Hungarian Tourism Association Foundation)
• Magyar Utazási Irodák Szövetsége (Hungarian Travel Agencies Association)
• Magyar Vendéglátók Ipartestülete (Hungarian Catering Industry Association)
• Magyarországi Idegenvezetők Szövetsége (Hungarian Tour Guides Association)
• Magyarországi Ifjúsági Szállások Szövetsége (Hungarian Youth Hostels Association)
• Magyarországi Rendezvényszervezők és -szolgáltatók Szövetsége (Hungarian Event Organizers and Service Providers Association)
• Skål International Hungary (Skål International Hungary)
• Turisztikai és Vendéglátóipari Munkaadók Országos Szövetsége (National Association of Tourism and Hospitality Employers – VIMOSZ)

Referendum on short-term rentals ban

Recently, a referendum was held in a central district of the capital in favour of a ban on home detention, details HERE. As no threshold was set and barely 20% of residents voted, Momentum’s mayor hailed the 54-46% vote in favour of the ban as a resounding success. Moreover, the government has adopted the opposition mayor’s initiative as a decisive result.

Hotel chains lobby, Hungarian families’ livelihoods

The Hungarian government has unsettled the market by not saying anything definite but raising the possibility of a complete ban. In addition, the government owns almost the entire supply of Hungarian hotels, so there is bound to be a lobby in favour of a ban.
At the same time, all the statistics show that those who choose to stay in short-stay apartments would not stay in hotels, so there could be a massive loss to Hungarian tourism after a misguided and forced decision.

Moreover, the government wants to impose strict restrictions to protect Hungarian families. Still, the vast majority of short-term accommodation is owned by Hungarian families, not by large corporations, so their decision is hitting Hungarian households.

read also: Tourism industry raises concerns over proposed ban on short-stay accommodations in Hungary

UPDATE

In a statement issued on Monday, the National Economy Ministry addressed the associations’ communication and said the government aimed to tighten regulations on short-term rentals only in Budapest. The regulations taking shape do not “in any manner” affect the activities of tourism accommodations in the rest of the country, it added.

The government will continue to cooperate with all tourism sector organisations and is committed to maintaining a “lively professional dialogue”, the ministry said. It added that the government viewed the matter of short-term rentals as a housing issue, considering the impact of homestay regulations on home prices and rents.

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