Hungary's tourist industry on track for another record-breaking year

Hungary's tourist industry on track for another record-breaking year
By bne IntelliNews November 12, 2018

The number of guest nights at commercial accommodation in Hungary rose 3.1% y/y to 2.6mn in September, the Central Statistics Office (KSH) said on November 9.

Hungary’s tourism industry had its best year ever in 2017 with overnight stays by foreign and domestic visitors climbing to 29.5mn. The number of overnight stays by foreigners doubled since 2010. The sector is set for another record year in 2018, according to the Hungarian Tourism Agency (MTÜ). The government declared tourism a strategic industry with the aim of boosting the sector's contribution to GDP from 10% to 16% by 2030. 

The number of guest nights by Hungarian tourists rose by 7.9% y/y to 1.17mn in September, but guest nights spent by foreign visitors were down by 0.5% to 1.45mn. 

More than half of all foreign guest nights were registered in Budapest and Central Hungary, down 1.2% y/y, albeit from a high base. 

Revenues of commercial accommodations increased 11% to HUF49bn (€152mn). Revenue per available room (REVPAR) at hotels rose 10.6% to HUF 15,000. The occupancy rate at hotels rose 1.5pps to 67%. 

In the first nine months, the number of guests nights increased by 3.9% y/y to 24.64mn. Overnight stays by domestic visitors rose 5.1% to 12.5mn and those of foreign guests were up 2.7% to 12.15mn. Revenue of the sector was up 9.4% to HUF389bn in January-September. The occupancy rate at hotels rose 2.1pps to 62.4% during the period.

The increase in the number of guests from the US and Romania was outstanding, the MTÜ said.

In related news, hotel chain Hunguest, a member of the Budapest Stock Exchange-listed Konzum group controlled by Lorinc Meszaros, announced that it will invest HUF45bn to upgrade its hotels in Hungary in the coming three to five years. Hungest owns 18 hotels in Hungary and five abroad, and it also operates three hotels for partners.

The company is striving to become a superior four-star hotel chain. The company targets revenues of HUF30bn next year, double the turnover in 2017. In the first nine months, Hunguest realised HUF3.6bn in profits on HUF17.6bn revenues.

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