Budapest baths risk closure amidst political and financial tensions

Several smaller Budapest baths, including the Dandár and Király baths, face potential closure, according to László Szőke, the former director of Budapest Gyógyfürdői és Hévizei Plc. (BGYH, Budapest Spas cPlc.). These closures would disproportionately affect low-income residents who cannot afford the steep prices of larger Budapest baths.

Stop in developments and profits under left-wing administration

In an article by Magyar Nemzet, Szőke criticised the current leadership of BGYH, which took charge after Mayor Gergely Karácsony and his left-wing administration assumed power in 2020. He argued that many knowledgeable professionals were dismissed, leading to increased bureaucracy, reduced operating hours, and a halt in developments.

Under Szőke’s leadership, BGYH transformed from a company operating at a HUF 600 million (EUR 1.5 million) annual loss in 2010 to one making a HUF 4.3 billion (EUR 10.9 million) profit by 2020. However, this success has since dwindled, with the company no longer matching its 2019 results, despite provincial baths setting new records.

Szőke further explained that the stoppage in developments post-2020 is largely due to the city’s decision to siphon off BGYH’s profits, leaving the company with insufficient funds to invest in upgrades. Between 2014 and 2019, BGYH independently renovated or reopened at least one Budapest bath per year, driving revenues from HUF 5.5 billion to 18.5 billion (EUR 13.9 million to 46.9 million). The company reinvested most of its profits, keeping prices stable for residents, with the city only withdrawing HUF 700 million (EUR 1.77 million) of the HUF 4.3 billion (EUR 10.9 million) profit in 2019.

Drastic price increases in Budapest baths since 2019

The drastic ticket price increases—up to 180% since 2019—have largely priced out local Budapest residents, with only tourists able to afford the costs. Many affordable Budapest baths, primarily frequented by locals, have been shut down, such as the Dandár bath, which was renovated in 2014-2015 and had no structural issues, despite claims to the contrary. Szőke believes the “structural problems” cited as reasons for closure are merely excuses to shut down non-profitable baths.