The View 7th edition

HOTEL MARKET

42

BORBÉLY GÁBOR MRICS Director, Head of Business Development and research, Senior Valuer

HUNGARY’S POSITIVE PERCEPTION GIVES FURTHER BOOST TO TOURISM Looking at November figures, commercial accommodation establishments registered a total of 12.5 million guests and 30.9 million tourism nights annual-to-date, showing an increase of ca. 5.5% on November 2017. The overall increase of gross revenues, however, reached ca. 10% in the same period on the back of increasing hotel prices. Foreign visitors accounted for roughly half of the 30.9 million guests nights registered, with a 60-40 split between Budapest and other destinations in the country. Domestic guests predominantly travelled to regional destinations. The capital city registered ca. 10.4 million guest nights annual- to-date by November, up by 4.1%on the previous year. While the increase of tourist arrivals was stronger in regional Hungary, the dynamic price

increase in Budapest hotels resulted in stronger revenue growth in the capital city. The attractiveness of the Hungarian capital is reflected in the consistent double- digit passenger traffic growth at Liszt Ferenc International Airport, which became the fastest growing airport in the CEE region by 2018, with 14.9 million registered passengers throughout the year. This significant increase makes further capacity expansion necessary in the coming years. Budapest is currently undergoing a number of major redevelopment projects which will increase the city’s attractiveness even further. The recently agreed “Budapest 2030” high- level strategy is a clear commitment by the state and the city to transform Budapest into a centre of innovation, culture and a sustainable, green and creative economy. This strategy consists of several major infrastructure developments, capacity increase in sport venues (Budapest will host the 2023 athletics world championships), the multi-purpose cultural disctrict named the Liget Budapest Project, and the renovation and functional transformation of the UNESCO protected Buda Castle District.