Serious price increase on the horizon for Budapest spas
After the incredible revenue losses of the last two years, visitors to Budapest’s spas can expect a serious price increase.
Years affected by Covid
The past two years have been nothing less than lethargic, especially for services where revenues highly depend on visitors and guests. A great example of this is spas: these places have been forced to stay closed for long months because they could have greatly facilitated the spread of the virus. To illustrate these words with numbers:
in the 21 months between March 2020 and the end of 2021, spas were closed for 8.5 months, with a 6.8 million drop in visitor numbers and a net loss of revenue of more than HUF 24 billion (EUR 67 million).
The future of spas
As Napi.hu reported, now, Budapest Gyógyfürdői és Hévízei Zrt. (Budapest Spa and Hévíz Zrt., hereinafter: BGYH) intends to double the number of guests in its spas this year compared to the previous two years greatly affected by the pandemic. Széchenyi Bath could become an event venue, and private medical services could be launched, while Rác Spa is planned to become a high-end facility.
However, escalating overheads and wage costs could lead to a major price increase starting from July.
The epidemic has cut BGYH’s revenues by a third, and in 2020, they failed to reach HUF 6 billion (EUR 16.7 million) in revenue (compared to HUF 18.4 billion [EUR 51.3 million] in 2019), with losses exceeding HUF 3 billion (EUR 8.4 million).
Plans for the future
For BGYH to operate effectively, the 2020-2021 figure of 1.5-1.7 million guests would need to be increased to 3 million this year. This is 70% higher than in 2021 but 60% lower than in 2019. However, the company says this can only be achieved if the spas do not have to close due to another wave of the epidemic.
For spas with a predominantly Budapest clientele, BGYH plans to increase the price of admission tickets by 8.7% from the second half of the year. For those with an international tourism clientele, this increase is going to be 20%. According to the company, this is still 30% below the international average.
However, Hungarian guests will still be able to enjoy a number of discounts in 2022.
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Source: Napi.hu, 168.hu
Only the salaries remaining the same like a 3rd world country
– 9.4% = Gross Domestic Product of Hungary – from Tourism.
– 27% Vat – highest of Member Countries of the European Union.
– Inflation = at 14 month High and Rising.
– Interest Rates = only country in Europe post February 2020 – to RISE Interest Rates.
– Forint = continues to be under PRESSURE – from all other major currency trading countries.
– Property Market = the “Broadsheet” market = under growing mounting pressure due to – SELLERS numbers “Dangerously” outnumbering Buyers.
We continue to Build on – apartments,flats,houses – renovations – new Hotels – new warehousing and storage facilities.
WHO are going to be the Buyers ???
Foreign Investment over past 10 years in Hungary – into the Broadsheet Property Market – we are paying a price in January 2022 that will continue, the authorization of foreign investors – number 1 – the Chinese, followed by the Vietnamese then Germans – the (3) three BIG Players – who are in great part responsible for the FALSENESS of Values – that we experience in Budapest, Hungary at this time.
There will be – CARNAGE – witnessed within the BROADSHEET – landscape – under Property in Budapest, Hungary.
Asking this question, applying no academia for example to the question – with what we are seeing living in at present in Budapest, Hungary – an – ECONOMY – in greater part under “Seige” – in its “Core” the fundamentals globally used and recognized by respected companies – that evaluate the performance presently of a country and in its Future – short & long term – that will not for the next (2) two to (5) five years – see our Economy – the Hungarian economy – return to Normality – trending up-wards or establishing – Stability – what is NOT going to stop the Carnage – that I predict – Factually occuring within the BROADSHEET of the Property Market ???
Rating on European countries published over past (8) eight days – listed Hungary as the second lowest in Standard of Living – and in Quality of Life – in Europe.
REMEMBER – we have an “Ageing Population”.
We have a population of 9.6 million just.
Hungary – we STILL trend – that there are more deaths yearly of Hungarians than babies being born.
Nothing – across the Economic & Financial Spectrum – is going to get CHEAPER in Hungary.
February 2020 – has changed Hungary – changed Europe inclusive of Great Britain and the Global World.
9.4 % of our Gross Domestic Product – earned from Tourism – High Hlobally – looking at “other” countries – there Balance Sheets – dependency – of earning – from Tourism.
27% Vat – charged by the Hungarian Government – the HIGHEST in the Member Countries that are in the European Union.
We still live in times Hungary – the existance of a Novel Virus “sweeping” – reaping havoc throughout the World – the massively CHANGED world – post February 2020.
Will there be ANOTHER Strain after Omicron ?
Don’t turn your lights out to this PREVALENT question.
REMEMBER : the World got caught – with its “Pants ” down – totally un-prepared that a Viral Pandemic – a Noval Virus – that had – NEVER – preparations by Governments nor the World by countries – that the likes of the present Novel Virus could – “Invade” – the Global World – as we know in FACT – it has.
Life has changed – Hungary has changed – Global Markets changed – the WORLD has Changed – and the “ZENITH” of change – by countries Hungary exampled – and Globally – this uncertainty, turbulency – the SOFTNESS – witnessed in great number, of countries, there – Financial Status – non ability to exist through lack of Assets/Funds – needing to BORROW – to keep functioning – or “Crying” out for Help – from “other” countries – who may or may not – have facilities to assist them – Heart Breaking & Sad.
Globally – the World and we in Hungary – Know its the Case & Happening – post February 2020 = and our DEBT – as a Country will continue to Grow.
The finding – what could be termed a Leval of Normality – a Base of Stability – maybe in the next (2) two to (5) five years – and we – HUNGARY – will not – the World will not – become a – CHEAPER – place to Live – post February 2020.
Who pays for RISING Government Debt ???
How is esculating Debt – deemed by a Government – as NECASSARY – by on Borrowing – be careful it is not “Veiling” its TRUE Financial Postion – who pays – for the Rising Debt(s) of a Government ???
This PAIN – caused by the arrival of this Noval Virus – February 2020 – that has entered and inflicted – agony
and suffering – on the greater percentage of Humans on this Planet – come back to Hungary – if we DON”T bleed equally – and not see – Blatant acts of GREED – in Price Rises that are acts of EXTORTION – on Human beings – our pain may be LESSENED – going forward.
GREED – report on Ikea – (7) seven days past in DNH – then the title of this artice – then Foreign Minister “Weighing” in – propaganda to large degree – that the Government support and want to encourage growth for domestic supply chain for Food companies – then Government “ceiling ” on certain commodities – sugar as example.
GREED – bleeding of people – that FIGURES explanations can be created to TRY and cover – GREED.
Hungary – we just HAVE to ACCEPT – nothing is GOING to Get Cheaper – and what that escalation of the Cost of Living – causes and inflicks on our Hungarian Lives – its aftermath – doesn’t paint a joyous nor colourful picture.
WHY – are HUMANS affraid – not to abuse others by saying – GREED drives you ?
Humans – the concern or postion see and witness – inclusive of observation – why not vocally/orically could be in written form of communication – communicate like so:
“Respectfully the price you ask does not rest comfortable with me and could be considered – you being exploitative or greedy in the price you ask”.
Candour – my position.
I can assure you – this example – not just post February 2020 but a life “beavioural pattern” – and not being born with a “SILVER ” spoon in my mouth – that finds me, in the “Gloaming” years of my life – Finacially Secured, that I detest – GREED.
Hungary – just watch it – and make Big Waves just like Tonga have experienced – likened to a Tsunami – and OBJECT – make your Position be Known – RESPECTFULLY.
Respectfully – you can – Shame & Blame others.