Hungarian tourism diminishes because of the economic downturn. The number of tourists coming to the country considerably drops as well as the demand for business events.
Hungarian economy is suffering heavily because of the global economic crisis. Reports about the bleak situation have filled pages of newspapers for some time. The perspectives for Hungarian tourism industry are also not bright. According to the business daily Vilaggazdasag, the number of guests in hotels fell noticeably over the first five months of this year. In the January-May period the number of visitors to the country dropped by 12.2 per cent
compared to the numbers from 2008. Also according to the Central Statistical Office, the number of guest nights dropped by 14.1 per cent. The demand from the most important Hungarian source markets – Germany, Romania, UK and Italy – has significantly declined. The biggest drop was in the number of British guest nights – by 33 per cent. Not even the weak forint helped to improve the situation. Gross revenue from accommodation and related services was 11.8 per cent down in the period in question. Foreigners’ generated revenue was down to HUF 27.538 billion which is 14 per cent less than in the same period a year before. The commercial accommodations" occupancy rate was 32.6 per cent in the period. The outlook is rather gloomy for the Hungarian tourism sector. Hungarians intend to spend less on their summer vacations than the year before.
Only some 8 per cent of them plan vacation in the next three months and 68 per cent of Hungarians said they would not travel as tourists in the next twelve months at all. Approximately 75 per cent of those who plan vacation will travel within Hungary. Hungarian business tourism is also not doing very well. As the business opportunities diminish due to the crisis, business travelers stay at home or switch to electronic communication. Conferences are not that popular as they were prior to the crisis and companies spend less on their employees’ business trips. Related:DESPITE THE DROP IN DEMAND HUNGARY WILL OPEN NEW HOTELS