Big changes are coming: Orbán cabinet presents a deregulation package for tourism

National Economy Minister Márton Nagy held a press conference on Monday to present a 16-point deregulation package drafted with the Hungarian Tourism Agency.

Nagy said the package had been put together by the Tourism Consulting Body, a group of industry insiders recently established to advise the government on tourism policy. He added that the goal of the package was to reduce red tape and boost the sector’s competitiveness.

He said the package would regulate short-term rentals in the capital, cap service fees, establish rules for guided tours, and give the SZEP voucher card a digital upgrade. He added that the carbon tax on airlines is also expected to be phased out.

Nagy said the tourism sector was “performing very well,” generating 12 percent of the GDP and over 10 percent of tax revenue, Index noted.

He said short-term, Airbnb-type rentals would be regulated only in the capital, adding that the government agreed with the industry insiders on applying a moratorium on the issue of new homestay permits while raising taxes on the activity.

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

He said converting rural buildings, such as barns and wineries, into tourism accommodations could boost village tourism.

The package would increase the police presence in Budapest’s “party district”, raising the number of officers on patrol from 48 to 58 and establishing an independent police station there.

It would ease rules on swimming pools at tourism accommodations, eliminating the requirement for a lifeguard for pools with a capacity for fewer than 20 people.

Service fees would be capped at 12pc, and banks would be required to provide a solution offering customers the option to pay their tips separately by bankcard.

Admission fees for zoos could be classified as a tax-free extra-wage benefit.

Nagy noted that there were around 20,000 licensed tour guides in Hungary, but just 3,000-4,000 were active and said licensing criteria and test materials needed to be updated.

A digital version of the SZÉP voucher card will be rolled out in the future, and restaurants will be exempt from having to provide parking in some circumstances. Mandatory data provision for attractions will be expanded to include the parliament building, Saint Stephen’s Basilica, and narrow gauge railways.

The carbon tax on airlines is expected to be phased out from January 1. Budapest Liszt Ferenc International is undergoing developments, and the expressway connecting the airport to the city center is being renovated.

The tourism agency would issue a manual on regulatory compliance in the catering sector, and the excise tax on gas released with thermal water would be scrapped if that gas is not used for commercial purposes.

Nagy said broader adoption of QR payments could benefit tourists arriving from China.

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