Hotel association projects 70 pc revenue loss at Budapest hotels this year
For most hotels in Budapest, the loss of revenue this year may exceed 70 percent from last year, while hotels outside of the capital are expected to see their revenue fall by 20-40 percent due to the coronavirus crisis, according to a representative survey commissioned by the Hungarian Hotel and Restaurant Association.
Differences in terms of operating profit projections are similar between Budapest hotels and those in other cities, the association said in the analysis sent to MTI on Wednesday.
Answering the question as to when they expect to see similar profits to last year’s level, most hotel managers in Budapest said it would be in 2023-2024 while those outside of the capital expect to return to that level in 2021-2022.
Fully 10 percent of the hotels in the survey were still closed in September; 90 percent of these are Budapest hotels.
The association said the wage support measures played a critical role and extending these would be of great help to hotels both in Budapest and elsewhere.
Wage subsidies provided by the government expired at most hotels in late August or in the first half of September.
The survey still shows only half of the respondents expect to lay off staff to manage the situation, which shows the importance of retaining quality workforce, the association said.
Read alsoQuarantine for foreign travellers lowered to 10 days in Hungary
Source: MTI
1 Comment
When will it end ?
The situation can only be reversed, that will welcome tourists, when statistical scientific medical advice indicates, that the doors can open and Hotels can again function for the purpose that they built.
It moves me, a personal feeling of deep sadness, the devastation to tourism and to those, in their multitude of numbers and associated service and other businesses, torn ripped apart, and destroyed in cases, by this novel coronavirus pandemic.
There is no need at all for me to – ELABORATE – what tourism, the vastness of good it does for a country.
We wait patiently, a human need muchly required, that we ALL display tolerance, in our waiting and belief – Hope – for the discovery of a vaccine that will immunize human beings from contacting this novel coronavirus.
Statistic’s that are being produced, as this article refer, read of the horrendous ramifications and effects, the arrival of this novel virus has impacted into the tourism industry, not just Hungary, but Globally.
When we return, to life-styles, that do resemble normality, and tourism, commences to” filter” back – tightly controlled and monitored by Government, this “filtering ” entry process, into our country, especially our Capital of Budapest, for me there will be great joy and pleasure.
We ALL need the vibrancy and all other assets, that tourism gives and provides, to the “soul” of our Country.
The downside to me, is the continuation of building greater numbers of Hotels.
Walk and look around you, they are visible to see their vast growing numbers.
They are growing and rising, nearing stages of completion, in the not to distant future.
I reside in District V – and I love to walk and the message that I write is factorial, that greater numbers of Hotels are rapidly coming.
The timing of there completion, not forgetting the immediate established Hotel occupancy level, fill rates say average of 15%, at present, the longer we are “invaded” by this virus, this over supply FACT situation will add on to the catastrophic problems that surround us ALL – daily in our lives.
Stay Safe & Well – ALL.