Controversial use of hotel for Filipino workers in Hungary sparks diplomatic concerns

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In Hungary, a hotel in the popular spa town of Hajdúszoboszló has become embroiled in controversy due to its use as accommodation for Filipino guest workers involved in the construction of a BMW factory near Debrecen. The hotel, known as Hotel Aqua Blue, has been rented out for this purpose since last autumn, despite not holding the necessary permits for such use. This has raised concerns both locally and nationally, highligting issues of regulation, worker welfare, and tax compliance.

From hotel to housing foreign workers

hotel aqua blue
The Hotel Aqua Blue in Hajdúszoboszló has been used as accommodation for foreign workers. Photo: aquabluehotel.hu

Originally operating under a tourism license, the hotel was previously a popular destination for visitors to the area, located just 150 meters from the town’s main attraction, a thermal bath complex. However, since shifting its focus to housing foreign workers, the facility has faced criticism from local officials. The hotel, with a capacity approved for 158 guests, is reportedly housing around 350 workers, significantly exceeding its legal limit, 24.hu reports.

The controversy deepens with the involvement of Duna Faktor, a debt collection and financial services firm, which acquired the hotel during a liquidation process. The transaction has been described as complex and opaque, with the property being sold for a fraction of its appraised value, largely through debt assumption rather than direct payment. Duna Faktor’s connections extend to several small businesses that have acquired parts of the hotel property, financed through state-backed loans, further complicating the ownership structure.

Taxes not paid properly

hotel aqua blue
Photo: aquabluehotel.hu

Local mayor Czeglédi Gyula has been vocal about the issues arising from this arrangement, particularly concerning the lack of tax payments to the municipality. According to Czeglédi, hotel owners or renters should be paying local taxes associated with providing worker accommodations, but this has not been happening. This has prompted calls for stricter regulations and enforcement, particularly in areas designated as therapeutic or world heritage sites, to prevent such properties from being used as worker accommodations.

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