Tourism industry raises concerns over proposed ban on short-stay accommodations in Hungary

The Hungarian Hotel and Restaurant Association has recommended drafting regulations on short-term accommodation based on international precedents and consultations with professional organisations.

In a statement sent to MTI, the association noted that homestays account for over half of the capital’s tourism accommodation capacity.

It recommended suspending the issue of short-term rental permits for a year, in 2025, during which time surveys could be conducted and studies made, with the involvement of professional organisations, allowing regulations to be drafted that could serve as a paradigm at the European level.

The association said regulation should focus on the inner districts of the capital, especially the area designated a World Heritage Site. Extending the rules nationwide would be unnecessary.

The association also proposed applying the same tax rules to commercial accommodations as to short-term rentals.

As we have already reported, in Budapest, the mayor of the 6th district, Tamás Soproni (Momentum Party), tried to get residents to vote for the ban. The turnout was very low, 20%, and the pro-banning campaign won by just a few percent (54-46%), but the mayor took the result as valid and credible. Related article: Airbnb issue in Hungary: with low turnout and almost identical turnout, the VI district orders a ban

The ruling party has found a good reason with this by no means representative vote to regulate “Airbnb apartments” across the country heavily, and already the minister in charge has indicated that a regulation is in the works.

It is essential to point out here that the wealthiest Hungarians with links to the ruling party own a large proportion of Hungarian hotels and expect some boom if they knock out the small landlords who currently account for more than half of Hungarian overnight stays.

Several tourism experts have already spoken out about the huge loss Hungarian tourism will suffer if the government bans short-term accommodation. Moreover, the problem of accommodation will not be solved because the statistics do not show that.

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