REPORT ON THE RECORD YEAR

Tourism in Hungary

Hollókő, an UNESCO World Heritage Site

4

That is why a paradigm shift started in Hungary last year

in connection with tourism, in order to enable our coun-

try to exploit the economic potential in the sector more

effectively.

In the next few years, we will provide tourism with an un-

precedented amount of funds, but a new, integrated na-

tional tourism brand is also being created, through which

it will be possible to show the experiences that can only

be gained in Hungary and which fill tourists’ hearts with

wanderlust.

The publication “Tourism in Hungary 2016”, with its re-

vised, professional commentary, summarises the key

data with which the present state of Hungarian tourism

can be understood.

Best regards,

Dr. Zoltán GullerChief Executive OfficerHungarian Tourism Agency

This idea comes from Hans Christian Andersen, but

I think so as well. There are places, the mention of which

is enough to attract travellers, and our country could be

one of them. Now everything is set up for tourism to be-

come a successful sector; we have achieved outstanding

results over the past period.

The continuous growth of the sector is reflected by the

growth of the number of foreign tourists visiting Hungary

and the number of guest nights spent here; these signifi-

cantly exceed both the world average and the average

for European countries.

Hungarian tourism has now become a strategic sector,

but not only because of its positive performance: the

whole country is crowded with small businesses and

suppliers associated with tourism services. Their success

and efficiency are at the same time the success and ef-

ficiency of the country, so it is in Hungary’s best interest

to pay due attention to the sector with regard to the de-

velopment of tourism and the extension of its potential.

There are significant challenges ahead for tourism world-

wide: it is enough to think about security risks or the ex-

pectations of the digital world. There are still far more

potential opportunities in our country than the ones we

are exploiting. We need to switch to a higher speed:

a real change of gear is needed.

Dear Reader,

„There are places, the mere mention of which is enough to inspire wanderlust in our hearts.”

5Picturesque view on Budapest and the Danube

According to balance of payments data published by the National Bank of Hungary in 2016, foreign exchange earnings from international travel was 5.1 billion euros, which is 6.5% more than in 2015. The foreign currency balance of international travels also showed progress: tourism has improved its balance of payments by 3.2 billion euros – 0.2% more than in 2015.

FOREIGN CURRENCY BALANCE OF INTERNATIONAL TRAVEL

2015 2016 2016/2015

Revenue (EUR million) 4 798 5 109 +6.5%

Expenditure (EUR million) 1 650 1 954 +18.4%

Balance (EUR million) 3 148 3 155 +0.2%

Source: Magyar Nemzeti Bank (National Bank of Hungary)

+3.9%

International tourist arrivals

Source: UNWTO worldwide

Looking at last year’s data, we can declare that tourism

has become one of the most important economic sec-

tors in Hungary, playing an important role in the produc-

tion of GDP and in employment, as well as in maintain-

ing the balance of payments. Since 2010, our tourism

indicators have been improving continually, but last year

saw the most dynamic change. The most remarkable

thing, however, is that there was a significant change not

only compared to our own previous data, but also our

tourism is growing rapidly internationally as well.

According to preliminary data from the United Nations

World Tourism Organization (UNWTO) published in 2017

for 2016, the number of international tourist arrivals in-

creased by 3.9% worldwide compared to 2015. In Eu-

rope, the rate of this growth was 2.1%, while in Hungary

it was more than three times this amount (and almost

twice the world average): +6.6%.

2016: THE YEAR OF RECORDS

76

+2.1%Europe

+6.6%Hungary

INTERNATIONAL TOURIST ARRIVALS (MILLION; 2016/2015)

2016 2016/2015

World 1 235.0 +3.9%

Europe 615.0 +2-.1%

Africa 57.8 +8.2%

America 200.2 +3.9%

Asia 308.6 +8.6%

Middle East 53.6 -4.0%

THE ECONOMIC IMPACT OF TOURISM IN HUNGARY

Direct Impact

Direct and Indirect Impact

GDP (billion HUF) 1 558 9.8%

Employment (000s persons)

346 12.0%

Source: UNWTO preliminary data Source: HCSO (Tourism Satellite Account, 2013)

9.8%

1.2 billionpeople worldwide Contribution to

GDP

According to the latest available data from the Tourism Satellite Account prepared by

the Hungarian Central Statistical Office, in 2013 the total added value of tourism-re-

lated industries was 1,558 billion HUF. To make it more perceptible: the share of all

added value of tourism-related sectors in the total economy using a multiplier effect,

i.e. with a direct and indirect contribution to GDP, is 9.8%.

Tourism plays a major role in the world economy, and every tenth job worldwide is

related to tourism: the total (direct, indirect and induced) contribution to employment

is 292,220,000 jobs, i.e. 9.6% of employment. In Hungary, this share is even better:

employment in tourism-related sectors is 346,000, representing, when combined

with a multiplier effect on total employment, i.e. direct and indirect employment, of

12.0%. In the light of the forecasts, this trend can only improve in the future: the World

Travel & Tourism Council predicts that in 2017 the direct contribution to both GDP

and employment will increase by around 7% in Hungary.

98

According to the data of the Hungarian Central Statistical Office in 2016, the number of

guests using commercial accommodation increased by 6.9%, and the number of guest

nights compared to the previous year increased by 6.7%. Accommodation revenues

increased even more rapidly: revenues from accommodation fees were 11.1%, and total

revenue was 9.3% higher than in the previous year.

In Hungary, there were 3,386 commercial accommodation providers operating with

98,543 rooms and 381,054 beds, indicating that the number of beds increased by

2.0% compared to 2015. Domestic and inbound tourism by the way share commercial

accommodation approximately in the same proportion: in 2016, 52.3% of the guests

were domestic guests, who spent 50.0% of the guest nights here. The country has

a strong seasonality: 15.3% of all guest nights were spent in July, and 15.6% in August.

ARRIVALS AND GUEST NIGHTS IN COMMERCIAL ACCOMMODATION

NUMBER AND EXPENDITURE OF TOURISTS

2015 2016 2016/2015

Number of inbound tourists (000s) 20,189 21,444 +6.2%

Same-day tourists (000s) 7,778 7,970 +2.5%

Overnight tourists (000s) 12,410 13,474 +8.6%

Expenditure of inbound tourists (HUF million) 1,235,096 1,291,600 +4.6%

Expenditure of same-day tourists (HUF million) 90,555 86,743 -4.2%

Expenditure of overnight tourists (HUF million) 1,144,541 1,204,857 +5.3%

Average expenditure of inbound tourists per day (HUF) 15,406 15,742 +2.2%

Number of domestic overnight tourists (000s) 15,253 14,425 -5.4%

Expenditure of domestic overnight tourists (HUF million) 307,407 308,911 +0.5%

Average expenditure of domestic overnight tourists per day (HUF)

4,960 5,239 +5.6%

Expenditure of domestic overnight tourists without VFR and hobby (HUF million) *

241,917 249,670 +3.2%

Average expenditure of domestic overnight tourists per day without VFR and hobby (HUF) *

7,195 7,290 +1.3%

Number of outbound tourists (000s) 9,705 10,167 +4.8%

Expenditure of outbound tourists (HUF million) 507,335 571,457 +12.6%

Main data on Hungarian tourism

NUMBER OF FOREIGN TOURISTS +6.2%

11

* Data without VFR (Visiting Friends and Relatives) and hobby motivations.Source: HCSO

Night view from Citadel, Budapest

ARRIVALS AND GUEST NIGHTS AT COMMERCIAL ACCOMMODATION

2015 2016 2016/2015

Domestic

Arrivals (000s) 5,474 5,815 +6.2%

Guest nights (000s) 12,925 13,827 +7.0%

Average length of stay (nights) 2.4 2.4 +0.7%

International

Arrivals (000s) 4,929 5,302 +7.6%

Guest nights (000s) 12,962 13,802 +6.5%

Average length of stay (nights) 2.6 2.6 -1.0%

Total

Arrivals (000s) 10,403 11,117 +6.9%

Guest nights (000s) 25,888 27,629 +6.7%

Average length of stay (nights) 2.5 2.5 -0.1%

+6.2%+7.6%

Number of domestic guests

Number of international guests

Source: HCSO

12 The Synagogue, Szeged

COMMERCIAL ACCOMMODATION GROSS REVENUES

2015 2016 2016/2015

Domestic accommodation fees (HUF million)

82,289 92,010 +11.8%

International accommodation fees (HUF million)

131,995 146,017 +10.6%

Total accommodation fees (million HUF) 214,284 238,027 +11.1%

Food & drink (HUF million) 78,017 81,864 +4.9%

Other revenue (HUF million) 76,468 83,203 +8.8%

Total revenue (HUF million) 368,768 403,094 +9.3%

DOMESTIC ACCOMMODATION FEE

REVENUE +11,8%

St. Stephen’s Basilica, Budapest

The number of foreign guest nights has increased by 43.6% since 2010. And if we look at the rise in fees for Hungarian commercial accommodation, we see that to-tal gross accommodation revenue increased by 83.7%, compared to 2010.

Number of guest nights

at commercial accommodation

2010–2016 (million nights)

Gross accommodation

fee revenues at commercial

accommodation 2010–2016 (billion HUF)

30

25

20

15

10

5

20

10

20

11

20

12

20

13

20

14

20

15

20

16

250

200

150

100

50

20

16

20

15

20

14

20

13

20

12

20

11

20

10

+43.6%

+83.1%

+39.1%

+84.7%

+41.3%

+83.7%

Number of international guest nights 2010-2016

International accommo-dation fees 2010-2016

Number of domestic guest nights 2010-2016

Domestic accommoda-tion fees 2010-2016

Number of total guest nights 2010-2016

Total accommodation fees 2010-2016

Domestic

Domestic

International

International

16

Island Bath house and long bridge on the Lake Balaton, Keszthely

The total number of guest nights in 2016 increased in absolute fig-ures in the Budapest-Central Danube Region (+ 7.0%), followed by Lake Balaton (+ 7.4%) and then by Western Transdanubia (+ 5.5%). (Table 2.)

In the ranking of the most visited settlements, Budapest, Hévíz and Hajdúszoboszló have remained in the first three places, in terms of arrivals and guest nights. Of the twenty most popular settlements, the number of guest nights increased most significantly in Szeged (13.4%), Hévíz (+ 8.6%), Hajdúszoboszló (+ 8.4%), Siófok (+ 8.3%) and Budapest (+ 6.3%). (Table 3.) Source: HCSO

In 2016, the number of arrivals has increased for almost every type of accommodation. The number of guest nights in three-star hotels increased significantly com-pared to the previous year, but the most popular types of accommodation are still four-star hotels, three-star hotels and spa hotels. (Table 1.)

Domestic guests comprised 58.6% of spa hotel guests and 49.1% of their guest nights. During the period under review, the average lenght of stay in spa hotels (3.3 nights) exceeded that registered at commercial accommoda-tion. On average, foreign guests spent 4.1 nights, while domestic guests spent 2.8 nights in Hungarian spa hotels.

According to data from the Hungarian Central Statisti-cal Office, in 2016 the number of guests increased not only in commercial accommodation but also in oth-er business type accommodation. In 2016, 1.9 million visitors spent nearly 6.4 million guest nights in other hotels. Compared to 2015, the number of guest nights increased by 21.2% in this type of accommodation. The growth was outstanding in Budapest; since while the number of rooms in other accommodation increased by 16.5%, the number of guest nights spent here rose by 51.7% in one year – this trend is due to the spread of the „sharing economy”, the expansion of community marketplaces into accommodation.

Geographical concentration is typical of Hungarian tourism: 69.0% of total guest nights are registered in the Budapest and the Central Danube, the Lake Balaton and the Western Transdanubia tourist regions. In 2016, except for Lake Tisza, growth was observed in all tourist regions in Hungary.

THE MOST POPULAR ACCOMMODATION TYPES, DESTINATIONS AND SETTLEMENTS

Figures for hotels include one- and two-star hotels and hotels without category designation. Volume indexes of hotel categories refer to the units which have a valid classification in the period of examination. Source: HCSO

1918

+6.7%Total

GUEST NIGHTS BY TYPE OF ACCOMMODATION

2015 2016 2016 (share) 2016/2015

Hotels 19,507,275 20,969,121 75.9% +7.5%

5 star hotels 895,807 806,410 2.9% -10.0%

4 star hotels 8,473,799 9,053,842 32.8% +6.8%

3 star hotels 3,333,477 3,749,518 13.6% +12.5%

Spa hotels 2,223,220 2,358,522 8.5% +6.1%

Pensions 1,710,816 1,769,534 6.4% +3.4%

Community hostels

1,766,374 1,877,507 6.8% +6.3%

Holiday houses 1,171,819 1,226,472 4.4% +4.7%

Camping sites 1,731,609 1,786,819 6.5% +3.2%

Total 25,887,893 27,629,453 100.0% +6.7%

Table 1.

View on the Old Fishermen’s Bastion, Budapest

ARRIVALS AND GUEST NIGHTS AT COMMERCIAL ACCOMMODATION BY TOURIST REGION (2016; 2016/2015)

number of arrivals number of guest nights

20162016

(share)2016/2015

20162016

(share) 2016/2015

Lake Balaton 1,692,124 15.2% +7.6% 5,451,600 19.7% +7.4%

Budapest and the Cen-tral Danube Region

4,711,438 42.4% +7.3% 10,578,716 38.3% +7.0%

Southern Great Plain 730,418 6.6% +5.9% 1,709,823 6.2% +6.2%

Southern Transdanubia 449,649 4.0% +5.6% 1,052,421 3.8% +2.8%

Northern Great Plain 758,560 6.8% +5.4% 2,055,360 7.4% +5.7%

Northern Hungary 1,008,495 9.1% +6.1% 2,279,528 8.3% +6.1%

Central Transdanubia 498,798 4.5% +13.8% 1,164,885 4.2% +15.4%

Western Transdanubia 1,162,598 10.5% +5.2% 3,036,736 11.0% +5.5%

Lake Tisza 105,214 0.9% -4.8% 300,384 1.1% -2.9%

Total 11,117,294 100.0% +6.9% 27,629,453 100.0% +6.7%

+7.4%+5.5%

+15.4%+7.0%

+6.2%

+5.7%

+6.1%

-2.9%

+2.8%

+6.7%Total number of guest nights

20 21

Table 2.

Hotel Gellért, Budapest

DOMESTIC ARRIVALS

SettlementNumber of guest nights

2016/2015

1 Budapest 1,127,946 +10.9%

2 Hajdúszoboszló 603,885 +7.5%

3 Siófok 554,840 +8.7%

4 Hévíz 420,479 +14.0%

5 Zalakaros 381,535 +1.7%

6 Balatonfüred 367,167 +10.4%

7 Eger 324,851 +0.9%

8 Gyula 311,534 -1.0%

9 Miskolc 283,720 +11.6%

10 Sopron 273,345 -6.2%

11 Bük 266,323 -1.1%

12 Szeged 259,833 +13.5%

13 Debrecen 241,417 -2.4%

14 Visegrád 221,608 +14.9%

15 Győr 189,675 +3.7%

16 Sárvár 189,305 +0.4%

17 Egerszalók 176,342 +6.4%

18 Velence* 175,346 +114.0%

19 Pécs 168,407 +3.2%

20 Gyöngyös 146,938 +10.0%

INTERNATIONAL ARRIVALS

SettlementNumber of guest nights

2016/2015

1 Budapest 8,195,282 +5.7%

2 Hévíz 635,755 +5.3%

3 Bük 436,559 +7.6%

4 Hajdúszoboszló 331,010 +10.0%

5 Sárvár 296,378 +9.7%

6 Balatonfüred 255,869 -2.8%

7 Siófok 218,135 +7.3%

8 Győr 179,679 +11.2%

9 Eger 124,851 -1.1%

10 Szeged 119,043 +13.1%

11 Zalakaros 118,784 +18.0%

12 Debrecen 106,799 +2.0%

13 Sopron 91,197 +3.9%

14 Mosonmagyaróvár 82,993 +18.8%

15 Hegykő 81,771 +2.3%

16 Zamárdi 81,095 +8.2%

17 Miskolc 75,010 +9.8%

18 Vecsés 71,422 +4.1%

19 Hegyeshalom 65,565 +11.5%

20 Nyíregyháza 64,125 +7.6%

THE MOST POPULAR HUNGARIAN SETTLE-MENTS, 2016

(NUMBER AND CHANGE OF REGISTERED GUEST NIGHTS AT COMMERCIAL ACCOMMODATION)

TOTAL ARRIVALS

SettlementNumber of

guest nights2016/2015

1 Budapest 9,323,228 +6.3%

2 Hévíz 1,056,234 +8.6%

3 Hajdúszoboszló 934,895 +8.4%

4 Siófok 772,975 +8.3%

5 Bük 702,882 +4.1%

6 Balatonfüred 623,036 +4.5%

7 Zalakaros 500,319 +5.1%

8 Sárvár 485,683 +5.9%

9 Eger 449,702 -0.4%

10 Szeged 378,876 +13.4%

11 Győr 369,354 +7.2%

12 Sopron 364,542 -3.9%

13 Miskolc 358,730 +11.2%

14 Gyula 358,399 +0.9%

15 Debrecen 348,216 -1.1%

16 Visegrád 245,602 +14.4%

17 Pécs 223,821 -1.8%

18 Zamárdi 199,637 +9.1%

19 Egerszalók 198,791 +6.0%

20 Nyíregyháza 196,256 +1.4% * In the case of Velence, the growth in guest nights is due to the significant increase in the number of camp sites.

22 23

+18.8%Mosonmagyaróvár

+14.9%Visegrád

+14.4%Visegrád

Table 3.

Vineyard and hills, Tokaj, an UNESCO World Heritage Site

In 2016, most tourists came to Hungary from European countries, but the growth rate in the number of guest nights from Asian countries last year was even higher (+13.8%) than the growth rate regarding European countries (+ 6.1%). Ac-cording to the data from the Hungarian Central Statistical Office, in 2016, among our ten most important sending countries, the number of commercial guest nights increased significantly, compared to the previous year, especially in Slovakia (+19.8%), the Czech Republic (+17.8%), Romania (+16.4%) and Poland (+11.2%). The number of guest nights from the United Kingdom (+9.0%), Austria (+4.7%) and the United States (+3.3%) also increased positively.

Looking at the most important source markets to Hunga-ry, several changes have taken place in 2016: based on the number of guest nights in commercial accommodation, Slovakia (due to its sustained and dynamic growth) has been included among the Top 10 countries; Poland has out-stripped Italy and the United States; while Russia slid back by one more place in the ranking compared to last year.

The arrivals from countries outside the Top 10 market were also favourable; visitors from China, for example, spent 35.8% more nights here than in 2015. Examined in absolute terms, the data show that the number of foreign tourists registered in commercial accommodation increased by 839,700 compared to the previous year.

In 2016, the number of hotel guest nights, regarding our 10 most important sending countries, increased significantly from Slovakia (+22.1%) and the Czech Republic (+19.7%). The arrivals from countries outside the Top 10 market were favourable to the hotels as well: an increase above 20% has been observed with regard to China (+ 37.4%), Denmark (+ 28.0%), the Republic of Korea (+ 26.9%), Ukraine (+ 23.1%) and Israel (+ 19.1%). In 2016, the number of foreign guest nights registered in hotels increased by 698,400 in abso-lute terms, compared to the previous year. This growth was largely attributable to the Czech (+109,200), the Chi-nese (+79,000), the Romanian (+63,900), the Slovakian (+62,700), the Israeli (54,300), and the British (+53,600) guest nights.

The most important source markets

24 Cathedral Square, Veszprém

ARRIVALS AND GUEST NIGHTS AT COMMERCIAL ACCOMMODATION

Arrivals Guest nights

2016 2016/2015 2016 2016/2015

Austria 318,653 +7.3% 829,277 +4.7%

Belgium 81,958 +1.5% 229,504 -0.8%

Bulgaria 45,558 +12.8% 76,385 +12.4%

Croatia 42,737 +9.9% 79,741 +9.3%

Czech Republic 270,992 +13.6% 813,982 +17.8%

Denmark 61,363 +24.1% 212,406 +20.2%

Estonia 8,241 +19.8% 18,924 +24.4%

Finland 52,266 +1.1% 155,428 +1.4%

France 167,426 +2.3% 423,183 +2.1%

Germany 549,487 +0.2% 1,919,635 -2.2%

Greece 52,452 +18.7% 138,556 +17.3%

Ireland 32,361 +14.0% 87,250 +16.5%

Italy 256,530 +2.1% 679,109 -0.4%

Latvia 7,250 -9.7% 16,476 +2.7%

Lithuania 8,978 -18.7% 17,476 -19.3%

Luxembourg 3,623 -5.3% 8,591 -4.2%

Netherlands 133,433 +11.8% 433,485 +4.5%

Norway 54,624 +2.9% 164,136 +0.2%

Poland 265,246 +7.9% 696,624 +11.2%

Portugal 17,093 +2.6% 41,075 +3.8%

Romania 282,598 +12.7% 543,939 +16.4%

Russia 138,268 -6.5% 536,182 -5.3%

Serbia 75,995 +16.6% 149,981 +17.0%

Slovakia 197,159 +16.0% 446,817 +19.8%

Slovenia 32,005 +21.6% 62,607 +21.6%

Spain 163,050 +9.1% 387,342 +8.1%

Sweden 91,383 +0.2% 247,959 -1.6%

Switzerland 72,398 +6.8% 204,071 +3.8%

Turkey 79,769 +9.1% 168,405 +5.4%

Ukraine 116,850 +13.7% 258,612 +28.9%

United Kingdom 379,474 +8.1% 971,797 +9.0%

Europe 4,199,886 +7.1% 11,320,496 +6.1%

from which: EU 3,531,693 +7,3% 9,567,667 +6.3%

27

The towers of the Cathedral of St. Peter and Paul, Pécs

to be continued on the next page

28

ARRIVALS AND GUEST NIGHTS IN HOTELS

Arrivals Guest nights

2016 2016/2015 2016 2016/2015

Austria 266,241 +8.1% 651,185 +6.9%

Belgium 65,656 +2.8% 164,657 +0.8%

Bulgaria 41,541 +13.3% 68,159 +11.0%

Croatia 38,653 +9.4% 69,362 +6.2%

the Czech Republic 222,338 +14.7% 664,281 +19.7%

Denmark 51,991 +28.3% 152,979 +28.0%

Estonia 6,915 +24.5% 16,376 +30.7%

Finland 47,430 +0.6% 141,035 +0.3%

France 147,038 +2.0% 359,355 +1.0%

Germany 457,384 +0.8% 1,423,822 +0.1%

Greece 50,570 +18.6% 132,894 +16.6%

Ireland 25,384 +11.6% 67,794 +13.1%

Italy 234,823 +1.8% 617,705 -0.9%

Latvia 6,160 -12.3% 13,206 -3.9%

Source: HCSO

ARRIVALS AND GUEST NIGHTS IN COMMERICAL ACCOMMODATION

Arrivals Guest nights

2016 2016/2015 2016 2016/2015

Asia 619,267 +14.3% 1,292,659 +13.8%

from which: China 170,171 +35.2% 302,107 +35.8%

India 33,725 +27.8% 77,760 +21.8%

Israel 108,018 +19.4% 349,021 +19.6%

Japan 55,100 -14.8% 118,930 -14.5%

Republic of Korea 123,423 +18.5% 175,328 +23.6%

Africa 26,928 -0.9% 74,345 -0.5%

America 398,062 +2.9% 972,405 +2.1%

from which: Brazil 25,269 -13.9% 62,348 -13.8%

Canada 42,545 +7.8% 107,981 +2.5%

USA 278,137 +3.5% 677,822 +3.3%

Australia and Oceania 57,700 +14.4% 142,140 +7.7%

from which: Australia 44,225 +14.8% 109,566 +7.9%

Total foreign 5,301,843 +7.6% 13,802,045 +6.5%

Total domestic 5,815,451 +6.2% 13,827,408 +7.0%

Source: HCSO

+7.0% TOTAL DOMESTIC

Reformed Great Church, Debrecen

to be continued on the next page

31

ARRIVALS AND GUEST NIGHTS IN HOTELS

Arrivals Guest nights

2016 2016/2015 2016 2016/2015

Lithuania 7,212 -18.0% 13,526 -21.9%

Luxembourg 3,290 -3.4% 7,595 -1.9%

the Netherlands 96,469 +17.6% 244,045 +18.6%

Norway 51,990 +2.5% 156,249 -0.6%

Poland 176,724 +4.8% 412,057 +6.5%

Portugal 14,644 +2.6% 35,135 +3.8%

Romania 240,270 +12.4% 446,590 +16.7%

Russia 130,153 -6.6% 511,462 -5.9%

Serbia 68,284 +15.9% 130,725 +12.7%

Slovakia 155,235 +19.6% 346,771 +22.1%

Slovenia 25,382 +19.6% 45,842 +16.2%

Spain 151,095 +9.3% 355,474 +8.1%

Sweden 85,846 +0.3% 231,932 -1.4%

Switzerland 64,911 +7.7% 177,728 +4.1%

Turkey 73,620 +7.9% 150,147 +3.7%

Ukraine 105,151 +11.4% 226,327 +23.1%

United Kingdom 339,961 +6.3% 855,567 +6.7%

Europe 3,587,634 +7.0% 9,176,495 +6.5%

from which: EU 2,968,055 +7.4% 7,565,024 +7.1%

Asia 591,785 +15.1% 1,218,497 +13.7%

from which: China 166,012 +35.6% 290,469 +37.4%

India 30,546 +25.9% 69,771 +19.0%

Israel 104,711 +19.1% 339,060 +19.1%

Japan 52,970 -15.9% 112,204 -16.2%

Republic of Korea 114,758 +21.6% 155,880 +26.9%

Africa 25,050 -1.3% 67,481 -0.4%

America 350,342 +1.1% 848,913 -0.4%

from which: Brazil 20,346 -9.6% 49,625 -9.7%

Canada 35,094 +5.4% 87,537 -1.6%

USA 252,227 +1.4% 611,274 +0.7%

Australia and Oceania 38,971 +5.9% 90,921 -3.6%

from which: Australia 28,177 +5.0% 65,033 -5.2%

Total foreign 4,593,782 +7.5% 11,402,307 +6.5%

Total domestic 4,111,569 +7.6% 9,566,814 +8.7%

Source: HCSO

View of the old town of Esztergom

According to the Hungarian Tourism Agency’s agg-regated data on card issuers, the amount paid using the Széchenyi Recreation Card added up to 95 billion HUF in 2016 – 14.4% more than in the previous year. Based on the report of the operating commercial ac-commodation providers, Széchenyi Recreation Card holders paid 19 billion HUF (+8.1% compared to the previous year) by this means of payment in commercial accommodation.

According to the data from the demand survey carried out by the Hungarian Central Statistical Office, domestic tourist spending increased by 24.7% compared to 2010. Last year, the number of domestic guests grew by 6.2% and domestic guest nights in commercial accommo-dation increased by 7.0%. Revenues from domestic ac-commodation fees increased at an even faster rate – by 11.8% - compared to the previous year.

Changes in domestic and inbound tourism

32

DOMESTIC GUEST NIGHTS BY TYPE OF ACCOMMODATION

2015 2016 2016 (share) 2016/2015

Hotels 8,803,349 9,566,814 69.2% +8.7%

5 star hotels 127,164 134,026 1.0% +5.4%

4 star hotels 3,574,630 3,838,819 27.8% +7.4%

3 star hotels 1,584,350 1,835,698 13.3% +15.9%

Spa hotels 1,092,382 1,158,454 8.4% +6.0%

Pensions 1,322,221 1,370,089 9.9% +3.6%

Community hostels 1,240,034 1,192,983 8.6% -3.8%

Holiday homes 940,651 982,072 7.1% +4.4%

Camping sites 619,243 715,450 5.2% +15.5%

Total 12,925,498 13,827,408 100.0% +7.0%

Figures for hotels include one– and two–star hotels and hotels without a category designation.Source: HCSO

33

+14.4%Total payment by Széchenyi

Recreation Card 2016

Széchenyi Recreation Card at commercial accommodation

2015

+8.1%Amount paid Széchenyi

Recreation Card at commercial accommodation 2016

Amount paid by Széchenyi Recreation

Card 2015

Source: HCSOSource: Hungarian Tourism Agency

MOTIVATION OF DOMESTIC TOURISTS

1-3 Nights 4+ Nights

Entertainment, recreation, sports 34.4% 64.1%

VFR 51.8% 24.8%

Wellness 4.7% 3.4%

Hobby activities 4.0% 3.2%

Study trip with school 0.9% 2.1%

Cultural or sport event 2.3% 1.1%

Official trip 1.7% 1.0%

Other tourist motivation 0.2% 0.1%

The HCSO investigates only overnight domestic trips for tourist motivations.

The Margaret Bridge, Budapest

According to the data of the demand survey carried out by the Hungarian Central Statistical Office, the number of tourists arriving for more than one night increased by 8.6% in 2016, and their spending grew by 5.3% compared to 2015. The number of foreign guest nights in commercial accommodation increased by 6.5%, while foreign accom-modation fees increased by 10.6% compared to 2015.

INTERNATIONAL GUEST NIGHTS BY TYPE OF ACCOMMODATION

2015 2016 2016 (share) 2016/2015

Hotels 10,703,926 11,402,307 82.6% +6.5%

5 star hotels 768,643 672,384 4.9% -12.5%

4 star hotels 4,899,169 5,215,023 37.8% +6.4%

3 star hotels 1,749,127 1,913,820 13.9% +9.4%

Spa hotels 1,130,838 1,200,068 8.7% +6.1%

Pensions 388,595 399,445 2.9% +2.8%

Community hostels 526,340 684,524 5.0% +30.1%

Holiday homes 231,168 244,400 1.8% +5.7%

Camping sites 1,112,366 1,071,369 7.8% -3.7%

Total 12,962,395 13,802,045 100.0% +6.5%

Figures for hotels include one– and two–star hotels and hotels without a category designation.Source: HCSO

MOTIVATION OF INTERNATIONAL TRAVELLERS

1-3 Nights 4+ Nights

Entertainment, recreation 13.8% 35.7%

VFR 18.3% 16.8%

City-breaks and tours 24.3% 15.7%

Health tourism 3.5% 13.8%

Business trip 9.8% 3.8%

Cultural or sport event 4.4% 3.7%

Other tourist motivation 8.7% 6.4%

Shopping 0.6% -

Transfer 11.3% -

Other non-tourist motivation 5.4% 3.9%

Source: HCSO

+102%

+56%

Spending of foreign tourists2007-2016

Spending of foreign tourists2010-2016 2007

2010

2017

3534

Source: HCSO

Festetics Palace, Keszthely

Commercial accommodation fees increased by 11.1% compared to 2015: domestic accommodation fees grew by 11.8%, and foreign accommodation fees by 10.6%. Taking not only the revenues from accommo-dation fees, but the total revenues of commercial ac-commodation into account, the increase is also signif-icant: total revenues of commercial accommodation increased by 9.3% compared to the previous year. The price index of accommodation and catering services calculated for 2016 was 2.7% higher than that of the pre-vious year – including a 2.3% price increase in the field of accommodation services.

The accommodation fee per guest night averaged 8,615 HUF at commercial accommodation, and 10,135 HUF in hotels.

According to the data from the Hungarian Central Sta-tistical Office, commercial accommodation reached an average room occupancy rate of 46.8% in 2016, with a room occupancy rate of 56.2% in hotels.

Revenues and occupancy of commercial accommodation

36

COMMERCIAL ACCOMMODATION CAPACITY

Units Rooms Beds 2016/2015 (beds)

Hotels 1,090 62,003 150,286 +3.2%

5 star hotels 10 2,218 4,651 -0.5%

4 star hotels 214 20,936 49,247 +2.9%

3 star hotels 178 10,630 26,246 +5.8%

Spa hotels 35 5,403 12,426 0.0%

Pensions 1,112 11,782 31,121 -1.6%

Community hostels 463 15,381 55,120 +9.5%

Holiday homes 465 8,130 26,366 +0.4%

Camping sites 256 1,247 118,161 -1.4%

Total 3,386 98,543 381,054 +2.0%

Figures for hotels include one– and two–star hotels and hotels without a category designation. Source: HCSO

COMMERCIAL ACCOMMODATION ROOM OCCUPANCY RATES

Room occupancy rate

Hotels 56.2%

Spa hotels 64.7%

Pensions 28.9%

Community hostels 21.0%

Holiday homes 28.0%

Camping sites* 12.5%

Average 46.8%

*Occupancy rate of pitches.Source: HCSO

37

View of the old town of Esztergom

According to the statistics of the Hungarian Convention Bureau of the Hungarian Tour-ism Agency, the number of MICE events in 2016 increased by 27.6% compared to 2015. A total of 3,598 MICE events were organised, involving almost 634,000 participants: the number of Hungarian conferences increased by 30.9%, and that of the international events by 19.6%. The number of participants grew by 40.5%; an even greater proportion. 12.6% of the organisers of international events were British, 9.8% were American and, 8.8% were German, but the Top 10 includes the French, the Belgians, the Italians, the Dutch, the Austrians, the Swiss and the Czechs, too.

In 2016, Budapest was ranked 16th on the list of international conference cities of the International Congress and Convention Association (ICCA) (climbing up 3 places com-pared to being 19th in 2015), outranking important conference venues such as Stock-holm (18th), Hong Kong (19th), Rome (20th) and Edinburgh (27th). In the ranking of European cities, Budapest was in 12 th place in 2016.

The most important data on MICE (Meetings, Incentives, Conferences and Events) tourism

38

MAIN CHARACTERISTICS OF INTERNATIONAL CONFERENCES IN HUNGARY

Number of conferences 981

Average number of participants 165

Average length of stay 3.8 days

Geographical breakdown 79.7% Budapest, 20.3% countryside

The most important themes25.5% medical science, 7.9% academic, 3.5% pharmacy, 2.1% information technology, 2.1% economics

Congress venue used 75.8% hotels, 8.8% universities, 5.4% congress centres, 10.0% others

Nationality of meeting planners12.6% British, 9.8% American, 8.8% German, 8.5% French, 4.7% Belgian, 4.4% Italian, 4.3% Dutch, 4.0% Austrian, 4.0% Swiss, 3.1% Czech, 30.3% others

International conferences: corporate or association meetings with at least 50 participants that include foreigners. Providing data is voluntary, the results reflect

the information made available by service providers.Source: Hungarian Tourism Agency

BUDAPEST’S RANK BY ICCA 2016

RankNumber of

international conferences

2006 6 98

2007 6 98

2008 6 108

2009 13 92

2010 18 87

2011 (EU) 11 108

2012 20 98

2013 17 106

2014 17 97

2015 19 95

2016 16 108

More than 1.3 million people arrived in Hungary in 2016 with a MICE tourism purpose (conference,

congress and business trip, exhibition, fair); they spent altogether 4.7 million days

in the country. Their total spending reached 136.5 billion HUF.

Source: HCSO

136.5billion HUF expenditure

2016

Source: Hungarian Tourism Agency

CONFERENCES IN HUNGARY 2016

Number Share

International Hungarian International Hungarian

Corporate 600 1,711 61.2% 65.4%

Associations 259 529 26.4% 20.2%

Other 122 377 12.4% 14.4%

Total 981 2,617 100.0% 100.0%

CET Budapest, modern whale shaped building on the bank of Danube river

Even though this year neither Easter nor any other long weekend fell in the first quar-ter, according to the preliminary data of the Hungarian Central Statistical Office, from January to March 2017 growth continued in all indicators. The number of foreign guests in commercial accommodation increased by 11.0%; the number of domestic guests increased by 4.2% compared to the period from January to March 2016, while the total number of guests grew by 7.4% in the first three months of 2017. The num-ber of foreign guest nights increased by 10.3%; the number of domestic guest nights increased by 2.9% compared to the period from January to March in 2016, and the number of total guest nights increased by 6.6% in the first quarter of 2017.

Commercial accommodation revenues from accommodation fees amounted to 41.2 billion HUF, which means an 11.5% increase compared to the same period of the previous year. In the first quarter, the total revenue was 75.4 billion HUF, which is 10.0% more than in the first quarter of 2016. The room occupancy rate of hotels in January–March 2017 increased by an average of 3.1 percentage points compared to the first quarter of 2016.

For the majority of the most important source markets, the number of guest nights also increased: German guest nights increased by 4.9%, British by 11.9%, Czech by 2.8%, Polish by 20.0%, Italians by 16.3%, Americans by 6.9%, and Romanians by 11.8% compared to the first three months of 2016.

According to the first quarterly data of the Hungarian Tourism Agency, employers have transferred 28.9 billion HUF to Széchenyi Recreation Cards by March 31st, 19% more than last year, and card holders paid 18.6 billion HUF by this means of payment; as such, their spending exceeded the amount of the first quarter of 2016 by 9.3%.

In 2017, several world events will take place in Hungary; these are expected to have a positive impact on the image of our country, as well as on the performance of tourism as a sector, such as the FINA World Championships and the European Youth Olympic Festival in Győr. In addition, the upcoming touristical developments will en-able the long-term, sustainable improvement of the performance of tourism sector, thus increasing the sector’s contribution to GDP.

What to expect in 2017?

40 41

Evening view on Budapest

Széchenyi Square, Pécs

Published by the Hungarian Tourism Agency, H-1027 Budapest, Kacsa utca 15-23.

Design: Lounge Design Kft.Printed by: PALATIA Nyomda és Kiadó Kft.

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