Lake Balaton forecast: guest workers to ease labour shortage, relatively low price increase

Service industry professionals expect no major price hikes this year at Lake Balaton. Labour shortages could be eased by the employment of guest workers mainly from third countries, while the difficulties of the construction industry could benefit employers and holidaymakers this summer.

Világgazdaság spoke to László Kovács, president of the Hungarian Caterers’ Association (MVI) about the labour market situation at Lake Balaton this upcoming summer. The president gave promising forecasts for both the labour market and the prices holiday goers may face.

László Kovács pointed out that while in the past two years, the shortage of labour and the price increase have hit both the catering and the service sector at Lake Balaton, “this has changed significantly, with the situation consolidating since 2022”.

Guest workers could alleviate labour shortages

According to László Kovács’s experience, Lake Balaton experienced its largest labour shortage in 2022, which can be attributed to the long-term effects of the COVID-19 pandemic. During lockdowns, a large amount of employees had to change careers, moving, for example, to the construction industry from catering. In addition, the closing of country borders severely limited the possibility of hiring guest workers to fill the gaps.

Now, it looks like changes are on the horizon. First, as László Kovács points out, the construction industry is currently in a period of stagnation. This means that a reverse labour drain is taking place: those who used to work in construction are now looking for work in the service industry near Lake Balaton. This helps hoteliers and restaurateurs a great deal.

Secondly, significant facilitations have been introduced for the employment of third-country workers in Hungary, which will also help to address labour shortages for hotel owners.

“I know of a hotel with 50 Singaporean and Indian employees,”

said the president of the MVI, who also pointed out that guest workers are not more expensive than Hungarians, and that they work to a high standard. The drawback is that they are more difficult to contract because of the bureaucratic procedures, but intermediary companies can help businesses with this.

At the same time, László Kovács explained that guest workers are mainly employed in unskilled jobs: in areas where highly trained individuals are needed, such as for chefs or confectioners, businesses have to find labour through other means.