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

Dagály bath. Photo: FB/Tóth József, mayor of the 13th district of Budapest

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.

The Dandár bath. Photo: Facebook/Dandár gyógyfürdő

Dandár, though not always profitable, generally only lost around HUF 50 million (EUR 126.8 thousand) annually—a small figure compared to the HUF 18-20 billion (EUR 45.6-50.7 million) revenues of BGYH. Szőke emphasised that this bath needs to remain open to cater to those who cannot afford more expensive alternatives like Széchenyi, Gellért, or Rudas.

The situation with the Király bath is similar, with claims of unauthorised operation being used as justification for its closure. Szőke insists that while there were no formal renewals of health department permits, the bath continued operating responsibly, taking regular water samples. He views the closure of these baths and the steep price hikes as a way to exclude low-income residents from Budapest bathhouses, as neither Dandár nor Király was heavily frequented by tourists.

Pünkösfürdő bath. Photo: Facebook/Pünkösdfürdői Strandfürdő

Looking ahead, Szőke fears that more closures are likely if the current leadership remains. Smaller, less profitable baths like the Pünkösdfürdő, Római, and Csillaghegy are particularly at risk. The costs of heating cold spring water at these baths make them financially difficult to sustain, and Szőke suspects that the same “structural issues” excuse could soon be used to shut them down as well. He advocates for leadership that allows BGYH to retain more of its profits, enabling it to function effectively as a market-driven enterprise despite being municipally owned.

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