Huge economic losses affect tourism and hospitality sectors in Hungary

The tourism and hospitality sectors are now in a much worse situation. Their hardships caused by the coronavirus do not seem to be easing.

Thousands of people left their jobs, and they will most likely never return to their previous careers. Just in Hungary, 40-50 thousand people left the hospitality sector, which affected tourism in many ways. In 2019, there were 193,000 people working in hospitality. In 2020, this number dropped below 177,000. This unfortunate situation has now worsened.

Not too long ago, Christmas fairs opened, people started to happily get ready for the holidays and try to find the joy of the season despite the coronavirus. Austria is under lockdown, and many countries still face terrible losses, but there are times when people still hope that things will get better.

Now, unfortunately, the tourism and hospitality sectors are experiencing the effects of the circumstances once again, and the losses are immense. If more people leave their jobs, there is no way to tell what consequences might come. RTL reported on the current situation, and the future does not look promising.

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New York Café, one of the most glamourous and iconic places in Budapest, lost a significant portion of its customers. Approximately 30-40 per cent fewer people are visiting. In December, an 80-85% drop is expected in terms of foot traffic, and, of course, revenues will match this decrease.

Tourists from certain countries do not come to Budapest anymore, and tourists arriving from Austria or Germany are few and far between as well. Parties, conferences, award ceremonies, and other events organised by companies will not be held at the end of this year. This causes huge financial losses.

Events organised at the end of the year usually bring 60 million forints (EUR 162,333). This year, the revenue could be as low as 6 million (EUR 16,233).

If more clients, guests, visitors, and workers are going to be missing from the tourism and hospitality sectors, the consequences could be unimaginable. The losses are immense already, and there is no way to predict what the future holds.

Read alsoPrices are shockingly high at Budapest Christmas markets!

Source: DNH, RTL