Tourism in Hungary 2003

Transcription

1 Tourism in Hungary 2003

2 General information about Hungary Territory: 93,030 sq. km Population: 10,116,742 (1 January 2004) Population density: persons per sq. km Capital: Budapest territory: 525 sq. km population: 1,705,309 (1 January 2004) population density: 3,248 persons per sq. km Geographical Location Geographical Regions Tourist Regions Climate Time zone: Daylight saving: Official language Form of state: Public administration: GMT + 1 hour + 1 hour from last weekend of March to last weekend of October Hungarian republic 19 counties and Budapest Hungary lies in the Carpathian Basin in Central Europe. The country spans 268 km from north to south, while the largest distance in an eastwest direction is 528 km. Fifty percent of the territory is made up of plains: the Hungarian Great Plains (Alföld), which takes up the whole eastern part, and the Small Plains (Kisalföld), which lies along the north-western border. The two largest rivers, the Danube (the Hungarian stretch being 417 km) and the Tisza (598 km) run through the country from the north towards the south. The Duna-Tisza- Region is another area of flatland between the two larger rivers, while the gently sloping area west of the Danube is called Transdanubia (Dunántúl), with Lake Balaton, Central Europe's warmest lake, in the middle. Hills and mountains range across the country along a diagonal line: the m peaks of the Transdanubian Mountain Range, consisting of the Bakony, the Vértes, the Gerecse, the Pilis, the Velencei, the Keszthelyi Hills, the Visegrádi Hills and the Buda Hills, are west of the Danube, while the Northern Mountains, with 500-1,000 metre high peaks in the Börzsöny, the Cserhát, the Mátra, the Bükk, the Cserehát, and the Zempléni Mountains, lie east of the river. The country's highest peak is the Kékes (1014 m) in the Mátra. Visitors can learn about the one-time typical animals and the folk traditions of the Hungarian puszta, the most popular tourist sight, at horse shows held in the Hortobágy National Park. From a tourism perspective, the country is divided into the following nine regions: 1. Budapest and the Central Danube Region, 2. Central Transdanubia, 3. Lake Balaton, 4. Lake Tisza, 5. Northern Great Plains, 6. Northern Hungary, 7. Southern Great Plains, 8. Southern Transdanubia, 9. Western Transdanubia. Hungary has a temperate continental climate. The coldest month is January (the average temperature is -1 o C), the hottest is August (the average temperature is 21.3 o C), the annual precipitation is 570 mm, and the number of sunny hours is 1,785 a year.

3 Hungary is waiting for you Let me extend my warmest greetings on behalf of Hungary's tourism administration and the whole of the tourism trade. Following a tradition of many years, this publication provides you the most up-to-date statistical data so that in the light of the figures you can assess the main trends in Hungarian tourism, and the operation of the service providers, who are the key players in the industry. Tourism has enjoyed a continuously increasing degree of Government support, which is based on the recognition that state participation is crucial in the development of this major driving force of the Hungarian economy. Since the year of 2003 posed major challenges for the whole tourism trade, both domestically and internationally, we have made large-scale efforts to intensify the marketing activities to promote Hungary. Hungary's tourism may benefit from the recent growth in global demand for travel and tourism. The country's accession to the European Union has made her belong to the world's largest tourism market. We are convinced that the Community membership will create the best possible conditions so that Hungary can catch up with the industrialised countries in the short term. Economic growth also entails a rise in people's discretionary income, which, in turn, has a positive impact on tourist demand. Hungary's inbound tourism is primarily based on the European source markets: visitors from the European Union account for 70 percent of the foreign guest nights at commercial accommodation, and there was a noticeable rise in this respect in The marketing activities towards the promotion of Hungary continue to be based on our main products and product groups: health tourism, convention and incentive tourism, Budapest and Lake Balaton. The strengthening of Hungary's image as a tourist destination is a long-term objective. The elaboration of the National Tourism Development Strategy, which lays down the main directions of national tourism development up to 2013, will be completed in The present publication provides an overview of the organisational structure of Hungarian tourism administration, the activities of the national tourism marketing organisation in 2003, as well as the key facts and figures about international and domestic tourism in the same year. We hope that you will find the information you require, whether you are a tourist or a trade professional. Let me cordially and proudly invite you to join those who wish to experience Hungary's continuously expanding number of unique tourism offers. Béla Pál Political State Secretary in charge of Tourism Ministry of Economy and Transport 1

4 Facts and figures International tourism in 2003, and Hungary's position in international tourism In 2003 the World Tourism Organization (WTO) registered 694 million international tourist arrivals, 1.2 per cent down on Europe continued to be the most popular destination, accounting for 57.8 per cent of international tourist arrivals. Within Europe, 9.8 per cent of international tourist arrivals were into the Central and Eastern European region, which represents 17 per cent of the European traffic. Compared to 2002, tourism in Central and Eastern Europe grew by 4.7 per cent, which is significantly higher than the continent's average growth rate of 0.4 per cent. International tourist arrivals, esedés / (million) (%) Market share (%) Europe Northern Europe Western Europe Central and Eastern Europe Southern/ Mediterranean Europe Americas Asia and the Pacific Africa Middle East World Source: World Tourism Organization In 2003, tourism receipts totalled USD billion, which is, at constant prices, 2.2 per cent down on Just like in the case of international tourist arrivals, Europe took the first place, accounting for 54.8 per cent of the total receipts. In Central and Eastern Europe, tourism generated receipts of USD 25.5 billion (-4.3%), which equals 5 per cent of the international and 9 per cent of the European receipts. Compared to 2002, it was only the Middle East where tourism receipts increased, while Europe experienced a fall of 2.8 per cent. Receipts per international tourist arrival stood at USD 740 in 2003, with the Americas posting the highest amount (USD 1,030). The same figure is USD 700 in Europe, but only slightly more than half of that in Central and Eastern Europe (USD 370). 2

5 International tourism receipts, Változás 2003/2002 Részesedés Egy főre eső /2002* Market share Receipts per (billion USD) (%) (%) arrival (USD) Europe Northern Europe Western Europe Central and Eastern Europe Southern/Mediterranean Europe Americas Asia and the Pacific Africa Middle East World * Rate-adjusted estimates. Source: World Tourism Organization The first six places on the ranking of the world's top tourist destinations remained unchanged in France came out on top with 75 million international tourist arrivals, and was followed by Spain, the USA, Italy, China and the United Kingdom. On the other hand, Canada registered a fall of 12.7 per cent, which meant that Austria, Mexico and Germany climbed up. In 2002 Hungary was the world's 12 th most popular tourist destination 1. In 2003 the United States registered the most tourism receipts, followed by Spain, France and Italy. Greece joined the top ten countries in this respect. Regarding tourism receipts Hungary ranked 33rd in the world in World's top tourism destinations, 2003 (million arrivals) France 75.0 Spain 52.5 USA 40.4 Italy 39.6 China 33.0 United Kingdom 24.8 Austria 19.1 Mexico 18.7 Germany 18.4 Canada 17.5 Source: World Tourism Organization 1 As of 2003, WTO has only published the ranking order of the top ten destinations. 3

6 World's top tourism destinations, 2003 (billion USD) USA 65.1 Spain 41.7 France 36.6 Italy 31.3 Germany 23.0 United Kingdom 19.4 China 17.4 Austria 13.6 Turkey 13.2 Greece 10.7 Source: World Tourism Organization The economic importance of tourism in Hungary Based on the data derived from the simulated tourism satellite account (TSA) system by the World Travel & Tourism Council (WTTC), the tourism industry made a direct contribution of USD 1,280.4 billion to the world's total GDP (3.7%). The number of people directly employed in tourism was 67.4 million, which is 2.6 per cent of those in employment. In 2003 government expenditures on tourism reached USD billion, and 9.6 per cent of capital investments, amounting to USD billion, flowed into the industry. The economic importance of tourism, 2003 World European Union* Central and Eastern Europe Hungary (billion USD) GDP (direct) GDP (indirect) Government expenditure Capital investments million million million thousand persons persons persons persons Employment (direct) Employment (indirect) * EU-15. Source: World Travel & Tourism Council Hungary is above the world and the European Union average both in terms of employment and government expenditure on tourism. On the other hand, the share of tourism in capital investments is significantly smaller in Hungary than globally or within the European Union. 4 WTTC figures show that in 2003 tourism contributed 5.0 per cent to Hungary's economic performance (USD 3,465 million), whereas, if the multiplier effect is also considered, the share of the industry stood at 10.4 per cent (USD 7,232.5 million). There were 247,500 jobs (6.3% of

7 the total) in the industry, while the employment of over 400,000 people (10.2%) in the national economy can be linked to tourism. 5.1 per cent (USD 330 million) of government expenditures flowed into tourism. The economic importance of tourism (%), World European Union (EU-15) Central and Eastern Europe Hungary GDP (direct) GDP (indirect) Employment (direct) Employment (indirect) Government expenditure Capital investments Source: World Travel & Tourism Council The statistics of the National Bank of Hungary indicate that international tourism receipts amounted to EUR 3,029 million, 12.2 per cent down on 2002, while tourism expenditure totalled EUR 1,788 million (-1.7%). This means that the international tourism balances (EUR 1,241 million) posted a fall of 23.8 per cent in 2003 compared to the previous year. International tourism receipts and expenditures in Hungary (million euros), Receipts Expenditure Balance Source: National Bank of Hungary 5

8 Summary data on Hungarian tourism, /2002 (%) Traffic at frontiers Number of international arrivals (000s) 30,679 31,739 31, Number of Hungarians travelling abroad (000s) 11,167 12,966 14, Guests at commercial accommodation establishments Domestic Guests (000s) 3,003 3,163 3, Guest nights (000s) 7,754 8,089 8, Average length of stay (nights) International Guests (000s) 3,070 3,013 2, Guest nights (000s) 10,894 10,361 10, Average length of stay (nights) Total Guests (000s) 6,073 6,176 6, Guest nights (000s) 18,648 18,450 18, Average length of stay (nights) Of which: in hotels Domestic Guests (000s) 1,556 1,633 1, Guest nights (000s) 3,985 4,152 4, Average length of stay (nights) International Guests (000s) 2,432 2,427 2, Guest nights (000s) 7,640 7,529 7, Average length of stay (nights) Total Guests (000s) 3,988 4,060 4, Guest nights (000s) 11,626 11,681 11, Average length of stay (nights)

9 /2002 (%) Guests at private accommodation establishments Domestic Guests (000s) Guest nights (000s) 1,379 1,522 1, Average length of stay (nights) International Guests (000s) Guest nights (000s) 2,434 1,967 1, Average length of stay (nights) Total Guests (000s) Guest nights (000s) 3,813 3,489 3, Average length of stay (nights) Balance of tourism Receipts (million euros) 4,224 3,448 3, Expenditure (million euros) 1,628 1,819 1, Balance (million euros) 2,596 1,629 1, , National Bank of Hungary Turnover of tour operators and travel agencies, Inbound Outbound Domestic tourism tourism tourism (000s) Number of participants (same-day visitors and tourists) Of which: tourists Number of guest nights Average length of stay (nights) (previous year = 100%) Number of participants (same-day visitors and tourists) Of which: tourists Number of guest nights Average length of stay (nights)

10 Inbound tourism in Hungary Arrivals at frontiers by country of origin, /2002 (000s) (%) Austria 4,790 4,735 4, Belgium Bosnia-Herzegovina Bulgaria Croatia 2,581 2,115 1, Czech Republic Denmark Estonia Finland France Germany 2,726 2,739 2, Greece Ireland Italy Latvia Lithuania Luxembourg Macedonia Moldova The Netherlands Norway Poland Portugal Romania 4,861 5,660 5, Russia Serbia and Montenegro* 3,488 3,912 3, Slovakia 3,889 4,051 4, Slovenia Spain Sweden Switzerland Turkey Ukraine 2,691 2,642 2, United Kingdom Europe 29,855 30,994 30, Of which: European Union (EU-15) 9,026 9,089 9, Other European countries 20,829 21,905 21, USA Canada Americas China Israel Japan Asia Australia and the Pacific Africa Total 30,679 31,739 31, * Yugoslavia in 2001 and 2002.

11 In 2003 the Hungarian Central Statistical Office registered 31.4 million international arrivals to Hungary. Compared to 2002, this number shows a negligible decrease of 1 per cent. International tourist arrivals by mode of transport, 2003 Hungary's main source market is Europe, from where 97.8 per cent of the visitors arrived in Last year most of the visitors came from Romania, Austria, Slovakia, Serbia and Montenegro, and Germany, with these five countries accounting for 68.4 per cent of the total. Regarding Hungary's traditional source markets 2, the number of visitors from Switzerland, Italy, Germany, Austria and Holland rose in 2003, while those from the USA showed some decrease. Of the neighbouring countries 3, more visitors came from Slovakia, Romania and Slovenia, but fewer from Croatia, Serbia and Montenegro, and the Ukraine. As for the dynamically growing source markets 4, the number of visitors from the Czech Republic, Belgium, Israel, Greece, Sweden, France, Spain, Russia, Norway and the UK climbed up, whereas fewer visitors arrived from Finland, Canada, Japan and Portugal. International tourist arrivals by mode of transport, Road 90% Air 4% Water 1% Rail 5% /2002 (000s) (%) Air 1,391 1,302 1, Rail 1,815 1,746 1, Road 27,315 28,524 28, Water Total 30,679 31,739 31, In 2003 the commercial accommodation establishments in Hungary registered 2,948,000 international guests (46.7% of all guests) and 10,040,000 guest nights (53.9% of all guest nights), which means a drop of 2.2 per cent in arrivals and 3.1 per cent in guest nights, compared to the previous year. Hotels received 73.2 per cent of the international guests at commercial accommodation in In the same year, the share of foreigners in hotels stood at 58.0 per cent in terms of guest numbers, and 62.8 per cent in terms of guest nights. 2 The traditional source markets are: Austria, Germany, Italy, The Netherlands, Poland, Switzerland and the USA. 3 The neighbouring countries are: Croatia, Serbia and Montenegro, Romania, Slovakia, Slovenia and the Ukraine. Austria is considered a traditional source market. 4 The new dynamically growing source markets are: Belgium, Canada, China, Czech Republic, Finland, France, Greece, Israel, Japan, the Nordic countries, Portugal, Russia, Spain, and the United Kingdom. 9

12 International tourism by type of accommodation, Number of arrivals /2002 (000s) (%) Hotels total 2,432 2,427 2, star hotels star hotels star hotels 1,058 1, star hotels star hotels Guesthouses Tourist hostels Youth hostels Bungalows Camp sites Total 3,070 3,013 2, Foreign guest nights by type of accommodation, 2003 Number of guest nights /2002 (000s) (%) Hotels total 7,640 7,529 7, star hotels star hotels 2,553 2,684 2, star hotels 3,408 3,272 3, star hotels star hotels Guesthouses Tourist hostels Youth hostels Bungalows Camp sites 1,763 1,556 1, Total 10,894 10,361 10, Average length of stay by type of accommodation, star hotels 9% 4-star hotels 27% 3-star hotels 31% 2-star hotels 5% 1-star hotels 1% Guesthouses 7% Tourist hostels 1% Youth hostels 1% Bungalows 3% Camp sites 15% Average length of stay /2002 (nights) (%) Hotels total star hotels star hotels star hotels star hotels star hotels Guesthouses Tourist hostels Youth hostels Bungalows Camp sites Total

13 Guests and guest nights at commercial accommodation establishments by country of origin, 2003 Commercial accommodation establishments Guests (000s) 2003/2002 (%) Guest nights (000s) 2003/2002 (%) Average length of stay (nights) Guests (000s) 2003/2002 (%) Of which: hotels Guest nights (000s) 2003/2002 (%) Average length of stay (nights) Austria Belgium Bulgaria Croatia Czech Republic Denmark Finland France Germany , , Greece Ireland Italy Luxembourg The Netherlands Norway Poland Portugal Romania Russia Serbia and Montenegro* Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom Other European countries Europe 2, , , , Of which: EU-15 1, , , , Asia Of which: Israel Japan Other Asian countries Africa Americas Of which: USA Canada Other American countries Australia and the Pacific Total international 2, , , , Total domestic 3, , , , Total 6, , , , * Yugoslavia in 2001 and

14 Foreign guest nights by tourist region, 2003 Guests from the European Union (EU-15) accounted for 70.6 per cent of foreign guest nights (7,084,000 nights). Regarding the traditional source markets, the number of guest nights spent by tourists from the USA and Italy rose in 2003, while Polish, German, Austrian and Dutch guest nights showed a decline. Considering the neighbouring countries, the number of guest nights at commercial accommodation establishments by Romanians, Ukrainians, Croats and Slovenians increased significantly. On the other hand, visitors from Serbia and Montenegro and Slovakia spent fewer nights in Hungary than in Lake Balaton 29% Budapest and the Central Danube Region 44% Southern Great Plains 3% Southern Transdanubia 3% Northern Great Plains 6% Northern Hungary 2% Central Transdanubia 3% Western Transdanubia 9% Lake Tisza 1% Analysing the dynamically growing source markets, the number of guest nights by tourists from Denmark, Greece, Sweden, Russia, France, the Czech Republic and Belgium posted a significant growth in The Canadian and the Finnish markets were, on the other hand, characterised by substantial decreases. Inbound tourism exhibits strong regional concentration in Hungary: 83.5 per cent of the guests visit three regions, namely Budapest and the Central Danube Region (58.0%), Lake Balaton (16.5%) and Western Transdanubia (8.9%). In 2003, two regions recorded an increase in the number of foreign guests: Lake Tisza (+9.5%) and Budapest and the Central Danube Region (+1.7%). Significant declines were observed at Lake Balaton (-9.7%), in Southern Transdanubia (-9.4%) and in the Northern Great Plains (-6.7%). The dominance of the three regions also applies to foreign guest nights since they accounted for no less than 82.0 per cent of the total. Of these, Budapest and the Central Danube Region has an outstanding share, followed by Lake Balaton and Western Transdanubia. Similarly to the adverse changes in the number of guests, most regions recorded a major 12 The main source markets by tourist regions, 2003* 1st place 2nd place 3rd place 4th place 5th place 1 5 places country % country % country % country % country % (%) Budapest and the Central Danube Region Germany 14.3 Italy 8.3 USA 8.2 UK 7.1 Spain Of which: Budapest Germany 13.8 Italy 8.5 USA 8.4 UK 7.4 Spain Central Transdanubia Germany 36.9 The Netherlands 14.5 Romania 9.0 Austria 6.6 Italy Lake Balaton Germany 63.4 Austria 9.2 Denmark 7.1 The Netherlands 6.9 Switzerland Lake Tisza Germany 35.0 Poland 14.3 Slovakia 9.1 The Netherlands 6.3 Austria Northern Great Plains Germany 51.2 Poland 11.2 Ukraine 5.7 Russia 4.8 Austria Northern Hungary Germany 25.0 Poland 16.8 The Netherlands 6.5 Czech Republic 5.8 Slovakia Southern Great Plains Germany 36.6 Romania 6.7 The Netherlands 6.0 Italy 5.8 Austria Southern Transdanubia Germany 55.3 Austria 7.9 Czech Republic 4.9 The Netherlands 3.9 Italy Western Transdanubia Germany 48.6 Austria 23.8 Switzerland 5.6 Czech Republic 2.7 The Netherlands Total Germany 36.3 Austria 7.2 Italy 4.8 The Netherlands 4.3 USA ,7 * Based on guest nights spent at commercial accommodation establishments.

15 fall in foreign guest nights compared to 2002: 13.7 per cent in the Northern Great Plains, 13.4 per cent in Northern Hungary, 10.4 per cent at Lake Balaton, 9.9 per cent in Southern Transdanubia, and 4.1 per cent in the Southern Great Plains. Studying the major source markets of the tourist regions reveals the outstanding role of German tourists. Germany is the most important country for all the regions. In Western Transdanubia, Austria tops the league of the first five source markets, whereas Polish guests are particularly significant at Lake Tisza, in the Northern Great Plains and Northern Hungary. The commercial accommodation establishments recorded the most foreign guest nights, 16.5 per cent of the total, in August, and the fewest, 2.9 per cent, in January per cent of the total foreign guest nights was registered from May to September. On the other hand, compared to the same period of the previous year, the number of guest nights fell in May (-9.4%), June (-3.2%) and July (-9.2%) in 2003, but increased in the winter months (+2.5% in January, +2.5% in November, and +14.4% in December), April (+4.3%) and August (0.2%). Monthly breakdown of foreign guest nights (000s), January February March April May June July August Total Lake Balaton Budapest September October November December In 2003 the foreign guests spent an average of 3.4 nights at the commercial accommodation establishments in Hungary, which was significantly more than the average length of stay by domestic guests (2.5 nights). The average length of stay was longer in the case of tourists from Denmark (5.7 nights), Germany (4.9 nights), The Netherlands (4.2 nights), Luxembourg (3.8 nights), Switzerland (3.7 nights) and Russia (3.7 nights). Guests arriving from the European Union (EU-15) spent an average of 3.8 nights at the commercial accommodation establishments. 13

16 The average length of stay by foreign visitors was higher than by domestic guests in almost every region, except for the Southern Great Plains, where the two figures were identical. The foreign guests stayed an exceptionally long period of 5.9 nights in the Lake Balaton region, the second place was taken by the Northern Great Plains (4.7 nights), and the third by Lake Tisza (4.5 nights). In 2003, the average length of stay by foreigners increased in four regions: Western Transdanubia (+4.9%), Central Transdanubia (+3.1%), Budapest and the Central Danube Region (+2.4%) and the Southern Great Plains (+2.4%). The largest decline of 10.1 per cent was recorded in Northern Hungary. The foreign visitors accounted for a substantial 70.9 per cent (63.9 billion HUF) of the revenue of the commercial accommodation establishments in Hungary. Still, the accommodation fee revenue paid by foreigners fell by 2.7 per cent in The bulk of the revenue paid by foreigners was recorded in two regions: Budapest and the Central Danube Region (67.8%) and Lake Balaton (15.9%). Last year the number of foreign visitors who arrived in Hungary on organised trips dropped by 6.2 per cent, of which the number of tourists fell by 9.0 per cent. Such foreign visitors spent a total of 1,743,000 guest nights in Hungary, with the average length of stay standing at 3.5 nights. Domestic tourism Domestic guest nights by type of accommodation, star hotels 1% 4-star hotels 10% 3-star hotels 23% 2-star hotels 12% 1-star hotels 5% Guesthouses 17% Tourist hostels 10% Youth hostels 7% Bungalows 9% Camp sites 6% In 2003, the number of domestic guests at commercial accommodation establishments was 3,367,000 (+6.5%), while the number of guest nights totalled 8,571,000 (+6%). As a result of the developing domestic tourism in the past years, 53.3 per cent of all the guests at commercial accommodation establishments were Hungarian in 2003, and they accounted for 46.1 per cent of the total guest nights. In 2003 more than half of the domestic guest nights (50.8%), notably 4,353,000 nights, were recorded in hotels. On the whole, the hotels realised 4.8 per cent more domestic guests, compared to The changes in volume were as follows: 5-star hotels down by 10.9 per cent, 4-star hotels up by 27.2 per cent, 3-star hotels down by 1.5 per cent, 2-star hotels down by 0.1 per cent, and 1-star hotels up by 20.2 per cent. Among the other types of commercial accommodation, only youth hostels had fewer domestic guest nights, while bungalows, tourist hotels and camp sites experienced higher volumes in Domestic tourism showed a lower degree of concentration than international tourism in per cent of the Hungarian guests chose the Lake Balaton as their destination, the second place was taken by Budapest and the Central Danube Region with 16.4 per cent, to be followed by Northern Hungary (15.6%) and Western Transdanubia (12.3%). The number of guests rose the most (20.8%) at Lake Tisza, while the growth rate was 15.1 per cent in the Southern Great Plains, 11.9 per cent in Central Transdanubia, and 7.3 per cent in Western Transdanubia.

17 Domestic guests and guest nights by type of accommodation, Number of arrivals /2002 (000s) (%) Hotels 1,556 1,633 1, star hotels star hotels star hotels star hotels star hotels Guesthouses Tourist hostels Youth hostels Bungalows Camp sites Total 3,003 3,163 3, Number of guest nights /2002 (000s) (%) Hotels 3,985 4,152 4, star hotels star hotels star hotels 1,992 2,017 2, star hotels 1,034 1,002 1, star hotels Guesthouses 1,336 1,422 1, Tourist hostels Youth hostels Bungalows Camp sites Total 7,754 8,089 8, Domestic guest nights by tourist region, 2003 Lake Balaton 21% Budapest and the Central Danube Region 15% Southern Great Plains 9% Southern Transdanubia 9% Northern Great Plains 11% Northern Hungary 14% Central Transdanubia 6% Western Transdanubia 12% Lake Tisza 3% Average length of stay by type of accommodation, Average length of stay /2002 (nights) (%) Hotels star hotels star hotels 2, star hotels star hotels ,2 1-star hotels 3, Guesthouses Tourist hostels Youth hostels Bungalows Camp sites Total

18 Regarding the domestic guest nights, the Lake Balaton region topped the league in The four regions with the highest volumes recorded altogether 62.1 per cent of the guest nights at commercial accommodation establishments. The number of domestic guest nights increased in each region in 2003: Central Transdanubia by 17.2 per cent, the Lake Tisza by 16.0 per cent, the Southern Great Plains by 12.8 per cent, Western Transdanubia by 8.7 per cent, Southern Transdanubia by 8.1 per cent, the Northern Great Plains by 3.7 per cent, Northern Hungary by 3.7 per cent, the Lake Balaton by 3.2 per cent and Budapest and the Central Danube Region by 0.9 per cent. The majority of the domestic guest nights was realised in July and August (17.1% and 18.0%, respectively). The lowest number, accounting for 4.1 per cent of all domestic guest nights, was recorded in February. Compared to the previous year, the number of guest nights fell only in February and March. The growth rate was 21.0 per cent in April, 15.9 per cent in October, and 11.7 per cent in January, relative to the same period a year earlier. Monthly breakdown of domestic guest nights (000s), January February March April May June Total Lake Balaton Budapest July August September October November December 16 The domestic guests spent an average of 2.5 nights at commercial accommodation establishments. The longest period, an average of 3.2 nights, was spent at Lake Balaton, while the Northern Great Plains, Central Transdanubia and Lake Tisza took the second place in this respect (2.6 nights each). In 2003 the shortest average length of stay (2.3 nights) was observed in Budapest and the Central Danube Region, Southern Transdanubia and Northern Hungary. Looking at the commercial accommodation

19 establishments, the domestic guests spent longer periods in Central Transdanubia (+4.7%), Southern Transdanubia (+2.2%) and Western Transdanubia (+1.3%). The income from accommodation fee generated by domestic tourism went up by 12.9 per cent (to 25.8 billion HUF) in The volumes showed a smaller degree of regional concentration: Lake Balaton accounted for 21.5 per cent, Budapest and the Central Danube Region for 19.2 per cent, Western Transdanubia for 12.5 per cent, and Northern Hungary for 12.4 per cent. In ,000 Hungarian travellers used the services of tour operators to arrange their domestic trips, of which 164,000 were tourists. The Hungarians involved in organised travel spent a total of 505,000 guest nights at various types of accommodation. The average length of stay of such travellers was 3.1 nights, significantly lower than that of international tourists. The holiday voucher The 1995 Act No. CXVII on income taxation provided that the registered holiday vouchers which are issued by the Hungarian National Holiday Foundation (HNHF) shall qualify as a non-taxable in-kind benefit. Introduced as of 1 January 1998, the holiday voucher scheme was modelled on the similar French scheme, which had been used there successfully for decades. Amendments that came into effect on 1 January 2003 raised the non-taxable limit of holiday vouchers from HUF 20,000 to the monthly minimum wage (HUF 50,000 on 1 January 2003), and made the employers 100 per cent exempt from tax and contribution payments, up from the previous 50 per cent. These provisions gave a substantial boost to domestic tourism in 2003: the share of domestic guests and guest nights increased both in hotels and at other types of commercial accommodation, and the number of people taking organised domestic trips also went up. In 2003 employers purchased holiday vouchers for their employees at a total value of HUF 4.85 billion, which was HUF 2.5 billion more than a year earlier. 174,000 people used vouchers for their travels in 2003, up from 115,000 thousand in Of the vouchers issued in 2003, a total of HUF 3.4 billion was cashed in last year. The travellers could choose from among over 1,500 service providers. The holiday voucher, Receipts (million HUF) Number of recipients 98, , ,973 90, , ,000 Source: Hungarian National Holiday Foundation Upon the commission of the Hungarian National Tourist Office, M.Á.S.T Market and Opinion Survey Company carried out a primary research into the awareness and usage of holiday vouchers in October A sample of 1,000, representative of the Hungarian population by county, urban structure, gender and age, was surveyed in face-to-face interviews. 17

20 6 Excursion: a one-day outing without an overnight stay, when a member of the household spent less than a day in another settlement, and his/her purpose was not work or study. 7 Trip: such a movement when a member of the household spent at least one night away from his/her place of residence, his/her purpose was not work or study, and the period spent away from home did not exceed one year. 8 Main holiday: the major travel of the household in the given period which involved at least two members of the household (unless it is a single household). 9 On a scale of 1 to 5, where 1 = very negative and 5 = very positive. The survey showed that 67 per cent of the respondents had heard about the holiday voucher, and the proportion was even higher among people with a secondary school education (73%) and with a university/college degree (85%). The awareness of holiday vouchers is closely related to travel activities. 71 per cent of those who had made excursions 6 in the twelve months before the survey heard about the voucher, whereas the same proportions were 72 and 75 per cent among people who had taken a trip 7 or had a main holiday 8, respectively. A lower degree of awareness could be recorded among households with 5 or more members, parents with small children, citizens over 60, households with a below-average income, and residents of the Central Transdanubian statistical region. 4.2 per cent of the respondents had used holiday vouchers. Of the users, 69 per cent had access to facilities and services in possession of the vouchers before 2003, 24 per cent both before and in 2003, and 7 per cent in 2003 only. Most people used holiday vouchers once in 2003, and one household received vouchers at an average value of HUF 43,737. The users of the holiday vouchers gave an average rating of to the scheme. The following advantages were mentioned: the vouchers are widely accepted, including high-quality accommodation facilities, are easier to obtain and use, and detailed information about the terms and conditions is also available on the Internet. Outbound tourism The Hungarian Central Statistical Office recorded that the number of Hungarians travelling abroad rose by 10.2 per cent in 2003 on the previous year, reaching close to 14.3 million. The number of outbound travellers fell on the Serbian border only (-6.0%), while the largest increases compared to 2002 were recorded on the Ukrainian (+60.4%), the Slovenian (+27.4%) and the Romanian borders (+20.8%). Hungarians travelling abroad by mode of transport, /2002 (000s) (%) Air Rail Road 9,850 11,662 12, Water Total 11,167 12,966 14, Trips lasting for at least one night. 18 According to the annual survey conducted by IPK International Tourism Consulting Group into European, particularly outbound tourism, Hungarians took 3,763 thousand outbound trips 10 in 2003, of which 2,651 thousand were holidays. Compared to 2002, the number of trips rose by 3 per cent, while that of holidays by 7.3 per cent.

21 Outbound trips by Hungarians, /2002 (000s) (%) Outbound trips 3,291 3,655 3, % Of which: holidays 1,442 2,470 2, % Source: IPK International In 2003 merely 4 per cent of the outbound trips were made into countries outside Europe 11. The most popular region within Europe was the Mediterranean (57%), followed by Central Europe 12 (19%). The most popular destinations of outbound trips (000s), 2003 Italy Romania Austria Germany Croatia Greece Slovakia France Spain United Kingdom Poland Source: IPK International The most popular holiday destinations (000s), 2003 Croatia Italy Romania Austria Greece Germany France Slovakia Spain Tunesia Source: IPK International According to the data of the Hungarian Central Statistical Office in 2003 tour operators arranged foreign travel for 687 thousand Hungarians, of which 662 thousand were tourists. The Hungarians taking an organised trip spent 4,410 thousand nights abroad last year, which gives an average length of stay of 6.7 nights. 11 The classification used in the research puts Albania, Croatia, Cyprus, Greece, Israel, Slovenia, Turkey, Egypt and other North African countries among the Mediterranean destinations. 12 Austria, Germany and Switzerland. 19

22 Travelling habits of Hungarians Commissioned by the Hungarian National Tourist Office, M.Á.S.T. Market and Opinion Survey Company in October 2003 carried out a research 13 in the excursions, trips and main holidays taken by Hungarian households between October 2002 and September In the period surveyed, 66 per cent of the households took altogether 4,930 excursions 14. This gives an average of 7.64 excursions per household. Trips 15 were taken in 62 per cent of the households: the respondents took a total of 3,218 trips, an average of 5.21 trips. On average, a trip involved a stay of 3.12 nights. The main motivations for these trips were relaxation, visiting friends and relatives (VFR), and beach holidays. A trip cost HUF 26,313 on average, which means that Hungarian households spent HUF 84,676 on trips during the twelve months surveyed. 13 The random sample of 1,000 is representative of the Hungarian population over 18 by county, urban structure, gender and age. The survey was administered in face-to-face interviews in the homes of the respondents. 14 Excursion: a one-day trip without an overnight stay, when a member of the household spent less than a day in another settlement, and his/her purpose was not work or study. 15 Trip: such a movement when a member of the household spent at least one night away from his/her place of residence, his/her purpose was not work or study, and the period spent away from home did not exceed one year. 16 Main holiday: the major travel of the household in the given period which involved at least two members of the household (unless it is a single household) per cent of the respondents took a main holiday per cent of the main holidays were motivated by relaxation, followed by swimming, bathing (15%) and visiting friends and relatives (13%). The activities during the holiday included relaxation (87%), swimming, bathing (60%) and visiting natural sights (45%). Most people took the main holiday in July (37%), August (29%) and June (10%), and an average main holiday lasted 8.4 nights. While accommodation was not at a collective establishment in 42 per cent of the main holidays, hotels were the most popular commercial accommodation facility, with 15 per cent of the respondents using them. Half of the travellers arranged selfcatering. Domestic Trips Excursions: 96.3 per cent, that is 4,750 excursions, were made to domestic destinations, which gives an average of 7.4 per household, 47 per cent was taken in the summer, 11 per cent in the winter, the main motivations were relaxation (15.8%), visiting friends and relatives (15.2%) and beach holiday (15.1%). Trips: 88.7 per cent were made to domestic destinations, the households took a total of 2,852 trips, an average of 5.13, 53 per cent was taken in the summer, 22 per cent in the spring, most of them had Lake Balaton, Budapest and the Central Danube Region and Northern Hungary as a destination, the most popular cities were Budapest (8%), Siófok, Eger, Debrecen (3% each), and Balatonfüred, Hévíz, Pécs and Szeged (2% each), the most frequent activity during domestic trips was relaxation (91%). 20

23 The most popular domestic destinations (%), Lake Balaton Northern Hungary Budapest and the Central Danube Region Western Transdanubia Northern Great Plains Southern Great Plains Southern Transdanubia Central Transdanubia Lake Tisza Source: Hungarian National Tourist Office / M.Á.S.T. Main holidays: 69 per cent, that is 349 main holidays were made to domestic destinations, from which the Lake Balaton region accounted for 33 per cent, 79 per cent were taken in the summer, of which 42 per cent in July, the average length of stay was 9.6 nights, the accommodation used was not at commercial and private establishments in 62 per cent of the main holidays; of the commercial and private accommodation establishments (38%) private room service was the most popular (9%), half of the respondents (54%) arranged self-catering, 18 per cent of the households collected tourist information about the destination both prior to and during the travel, the total cost per person was HUF 24,991, which gives HUF 4,514 daily expenditure. Meals was the largest cost item of an average of HUF 17,655 (32%). Activities during domestic trips* % Relaxation 90.7 Swimming, bathing 60.5 Visit to natural sights 36.7 Visiting friends and relatives 29.7 Shopping 25.5 Sightseeing 22.4 Visit to medicinal and therapeutic baths 17.7 Entertainment, disco, dancing 16.4 Visit to museums 14.8 Visit to arts events 12.5 Water sports 11.8 Tasting local food and wine 10.5 Hobbies 10.4 Cycling 7.2 Seeing folk cultural heritage 6.6 Gardening 6.5 * The table only includes activities that were mentioned by over 5% of the respondents. Source: Hungarian National Tourist Office / M.Á.S.T. Outbound tourism Excursions: 3.7 per cent was made to foreign destinations, 37 per cent was taken in the summer, 23 per cent in the autumn, and 14 per cent in the winter, the main motivations were shopping (29%), business (12%), visiting friends and relatives (12%) and relaxation (10.5%). Trips: 11.3 per cent was made to foreign destinations, which gives a total of 353 outbound trips in the sample of 1,000, one trip included a stay of 6.6 nights on average, 61 per cent was taken in the summer, 11 per cent in the winter, the most popular destination was Croatia, followed by Romania, Austria, Germany, Italy and Greece; destinations outside Europe accounted for 11 per cent of the trips. 21

24 The most popular destinations of outbound trips (%) Croatia Romania Austria Germany Italy Greece Slovakia Spain France Tunesia USA Czech Republic Egypt Destinations outside Europe Source: Hungarian National Tourist Office / M.Á.S.T. Main holidays: 31 per cent was made to foreign destinations, with Croatia (21%), Italy (14%), Romania (12%) and Greece (11%) being the most popular, 67 per cent was taken in the summer season, the average length of stay was 9.5 nights, 67 per cent of the travellers used commercial accommodation facilities, 60 per cent of the travelling households collected tourist information about the destination prior to the journey, while 62 per cent did so during the travel, the total cost of a main holiday amounted to HUF 86,433, which gives an average HUF 11,744 per day per person. The travellers spent the largest amount (HUF 40,217) on transport, accounting for 23 per cent of the total cost. The costs of a main holiday (HUF) Domestic holiday Holiday abroad Average Transport 8,363 40,217 18,101 Accommodation 11,885 30,527 17,546 Meals 17,655 26,931 20,456 Entertainment 10,223 22,922 14,116 Shopping 6,065 21,543 10,818 Travel agency package ,152 9,576 Other 735 2,053 1,139 Source: Hungarian National Tourist Office / M.Á.S.T. 22

25 Commercial accommodation establishments On 31 July ,517 units of commercial accommodation with 85,465 rooms and 347,277 bed places operated in Hungary. 109,726 bed places, close to one-third of the total, were in hotels, of which the share of three- (45.8%), four- (21.5%) and two-star (19.7%) establishments was particularly high. Camp sites with a total of 106,616 places accounted for another major portion of the total capacity (30.7%). Commercial accommodation capacity by type of acccommodation, Units Rooms Beds number 2003/ number 2003/ number 2003/ (%) (%) (%) Hotels total ,738 45,512 46, , , star hotels ,750 2,840 3, ,771 5,979 6, star hotels ,094 9,562 10, ,878 23, star hotels ,358 21,696 21, ,750 50,999 50, star hotels ,883 8,513 8, ,374 22,115 21, star hotels ,653 2,901 2, ,376 7,928 7, Guesthouses 1,258 1,361 1, ,159 16,903 17, ,993 46,744 48, Tourist hostels ,162 6,806 8, ,509 29,267 35, Youth hostels ,890 5,344 5, ,509 20,881 21, Bungalows ,212 7,313 7, ,829 23,984 24, Camp sites , , , Total 3,044 3,377 3, ,161 81,878 85, , , , Conference facilities at commercial accommodation establishments, 2003 Number of conference rooms Total capacity of conference rooms (seats) Hotels total 1,142 78,758 5-star hotels 130 9,800 4-star hotels ,214 3-star hotels ,315 2-star hotels ,584 1-star hotels 26 1,845 Spa hotels 106 8,500 Guesthouses 204 9,783 Tourist hostels 27 2,291 Youth hostels 15 1,315 Bungalows 27 1,964 Camp sites 1 50 Total 1,416 94,161 23