Dr. Ákos Niklai, Chairman of the Board Hungarian National Tourist Office February 7, 2007

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1 International Conference on Destination Management 7-9. February 2007, Budapest Dr. Ákos Niklai, Chairman of the Board Hungarian National Tourist Office February 7, 2007

2 HUNGARY In the heart of Europe for over 1100 years Member of the European Union since May 2004

3 TOURISM IN HUNGARY FIGURES / YEAR (2006) VISITORS: 41,0 MILLION GUESTS: 7,0 MILLION GUEST NIGHTS: 19,0 MILLION RECEIPTS: ~ 3,4 MILLION EUR (2005) Number of visitors increased by 6,2% Domestic guest nights increased by 9,5% (2006/2005) ECONOMIC IMPORTANCE GDP: 8,5% Employment : employees 12,5 % of total employment (direct & indirect) Ratio of foreign guest nights: 51,6% Ratio of domestic guest nights: 48,4%

4 HOTELS IN HUNGARY % of guest nights spent in hotels 799 hotels; 113,298 beds in Hungary 4* hotels: 122 units (+4% /2005) 5* hotels: 18 units (+2,5% /2005) 75 % of guest nights spent by guests from the European Union Hotel room revenues increased by 15% (2006/2005) 113,2 billion HUF 2002 UNITS 2005 UNITS 2005/2002 4* hotels % 5* hotels %

5 Accommodation

6 PRIORITY SOURCE MARKETS MAIN SOURCE MARKETS: GERMANY GREAT-BRITAIN, IRELAND AUSTRIA ITALY USA Emerging Markets: Holland and Belgium; Spain; Japan; Switzerland; Israel; Ukraine; China Most Promising Markets: Northern Europe (Denmark & Sweden) France Czech Republic, Slovakia Poland Romania Russia

7 TOURISM IN HUNGARY As well as Marketing communication is focused on FOUR MAIN PRODUCTS (abroad): BUDAPEST LAKE BALATON HEALTH TOURISM BUSINESS TOURISM BUILDING AND IMPROVING THE IMAGE OF HUNGARY AS AN ATTRACTIVE TRAVEL DESTINATION

8 BUDAPEST The capital city Pearl of the Danube Magical Panorama: UNESCO World Heritage 237 Monuments 223 Museums Internationally Recognized Cultural Events & Festivals Rich Architectural Heritage Europe s Largest Spa City : 100 Thermal Springs In 2006: 2,4 million guests 6,0 million guest nights 14 five star and 39 four star hotels in Budapest Europe s Largest Parliament Europe s Largest Synagogue

9 BUDAPEST

10

11 Culture and more not only in Budapest

12 LAKE BALATON The largest fresh water lake in the European Union. The favourite summer holiday destination in Hungary. Focusing on families, wellness and culture. Pleasantly warm Sandy, grassy beaches Safe for small children Water sports Spa & Wellness centres Famous wine regions Water quality monitoring According to European standards Excellent!

13 LAKE BALATON

14

15 SPA AND WELLNESS HUNGARY BOASTS medicinal spas medicinal spa-hotels wellness-hotels ancient bathing culture still operating Turkish baths from 16th C. THE WORLD S 5TH LARGEST SUPPLY OF THERMAL WATERS

16 SPA AND WELLNESS

17

18 MICE BUSINESS TOURISM BUDAPEST IS THE 8TH MOST POPULAR CONFERENCE DESTINATION IN THE WORLD* New 5000-seat congress center to be built in Budapest Number of conferences growing continuously *According to the data published by ICCA (International Congress and Convention Association) This achievement can be attributed to Hungary's positive image, high quality accommodation facilities and also to experienced Hungarian program organizers. Average lengths of stay 4,4 days

19 MICE

20 Active Holiday

21 Excellent Hungarian food and drinks flavour the time spent in Hungary

22 HUNGARIAN NATIONAL TOURIST OFFICE I. Tourism, sport and regional development are supervised by the Ministry of Municipalities and Regional Development since summer 2006, ensuring the synergy of these issues. HNTO s main goal is to increase the number of guests, guest nights and tourism receipts. Strong emphasis on the cooperation with the tourism trade and strategic partners.

23 HUNGARIAN NATIONAL TOURIST OFFICE II. Priority ranking of the marketing communication tools of HNTO in 2007: E-marketing, PR, press trips, Travel trade events and study tours, Advertisements, Publications, Exhibitions, presentations, road shows.

24 HUNGARIAN NATIONAL TOURIST OFFICE III. The marketing concept of HNTO in is based on the followings: Decisions based on research, Improving the tourism image of Hungary, building a Hungary brand, Focusing on the highest quality tourism products, Restructuring the priority ranking of marketing communication tools, Tailor made customer service to HNTO s clients Improving the travel trade partnerships of HNTO, Concentration of sources, Measuring efficiency.

25 HUNGARIAN NATIONAL TOURIST OFFICE IV. ORGANIZATIONAL STRUCTURE Board of Directors Supervisory Committee Head Office 5 Directorates Network of Foreign Offices Domestic Network Tourinform Offices (Franchise )

26 HUNGARIAN NATIONAL TOURIST OFFICE V. INTERNATIONAL AND DOMESTIC NETWORK Offices Abroad 23 Representations in 21 Countries Domestic Network 7 Regional Marketing Offices 2 Regional Tourism Project Offices 150 Tourinform Offices

27 HUNGARIAN NATIONAL TOURIST OFFICE VI. F I N A N C I N G Budget for ,3 Million EUR Marketing Operation Sources State budget Revenues 12,8 Million EUR 5,5 Million EUR ( 70% ) ( 30% )

28 HUNGARIAN NATIONAL TOURIST OFFICE VII. E M A R K E T I N G Web Sites In 25 Countries In 27 Languages Hungarian, English, German

29 HUNGARIAN NATIONAL TOURIST OFFICE VIII. E M A R K E T I N G OnTir - Online Tourist Information System 25 Thousand data in 24 Different Subjects Contact Center 24 hours Toll-free Calling from Inland and 7 Foreign Countries

30 HUNGARIAN NATIONAL TOURIST OFFICE IX. MARKETING CAMPAIGNS Talent for entertaining City light Posters at 12 Major European Airports

31 HUNGARIAN NATIONAL TOURIST OFFICE X. MARKETING CAMPAIGNS Budapest Winter Invasion Joint Promotion of HNTO Leading Hotels of Budapest Malév Hungarian Airlines Budapest Airport Tourism Office of Budapest Other service providers

32 HUNGARIAN NATIONAL TOURIST OFFICE XI. MARKETING CAMPAIGNS Film spots in International TV Channels Hungary Tony Curtis SPA

33 A LOUD WELCOME

34

35 THANK YOU FOR YOUR KIND ATTENTION!

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