Tourism in Budapest to explode during the restart?

Tourism in Hungary is prevalent and diverse. Regarding the surrounding countries, Hungary has one of the best domestic tourism. Besides, foreigners also love to visit Hungary and especially Budapest.

According to vg.hu, not only is tourism in Hungary attracting more and more people, but the number of investments is also growing. In 2019, the value of investments in tourism was more than 250 million euros. However, the coronavirus epidemic stopped the growth that could be seen in the previous years. Last year, there was only a total investment of € 170 million. However, it still outperforms the data of the year 2017 and 2018.

A slight stagnation can be observed in 2020,

however, the goal is to create more than 2000 rooms in Budapest and more than 300 rooms in the countryside by 2021.

According to forecasts, there is a good chance for that. At the same time, more investment may slip by 2022. The pandemic has reduced not only the amount of investments but also the number of nights spent in hotels. In Hungary, for example, the number of nights spent in hotels fell by 57 per cent compared to the previous year.

In 2020, the occupancy rate of hotels in Hungary fell from 79 per cent to 21 per cent, while sales per room for rent decreased from 72 euros to 17 euros. The pandemic puts hotels in a challenging situation. However, recovery is expected soon with the spread of the vaccine. Once the restrictions are over or reduced, the hotel industry can expect a rapid recovery. Even if foreign tourists do not come in such large numbers, domestic tourism is outstanding in Hungary. It is estimated that the hotels will reopen in the summer, which may be favourable for Lake Balaton and wine tourism.

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“2020 was a difficult year for the Hungarian hotel market. The volume of transactions decreased by 40 per cent compared to 2019. However, after the lifting of travel restrictions in the spring, the domestic market already exceeded the 2019 level last summer. The Hungarian market is exceptionally resilient and flexible due to the balanced mix of business and leisure guests, as well as individuals and groups. 

We expect to see a rapid recovery, and in Budapest, the recovery can be especially strong and fast; the best in the Central and Eastern European region,”

said Laurent Lassier, head of CBRE Hungary’s hotel market division. In addition to tourism in the capital as summer approaches, accommodations on the shores of Lake Balaton can also count on many visitors. Last year, 12 new hotels opened in the area, with a total of 787 rooms awaiting those wishing to relax. Laurent Lassier added that ” in this challenging period, accommodation providers are striving to develop and transform their business models, making their offerings more flexible, using even more new digital technology to attract guests.”

The date when restrictions will be lifted is uncertain at the moment. Still, indeed, the accommodation establishments in Hungary are very much looking forward to opening and providing visitors the best possible care.

Source: vg.hu