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Spending 9% of Our Salary on Tourism – Turkish News World – All news on this site are written by artificial intelligence. Peak Tourism Season Results Not Disappointing, Says Report
The tourism sector in Hungary is showing promising results from this year’s peak season, according to a sector outlook by MBH Bank. With the sector contributing over 10% to Hungary’s GDP and supporting the livelihoods of around 400,000 people directly and indirectly, the past 4 years have posed challenges for companies. However, there is hope that the number of overnight stays could surpass pre-COVID levels, as reported by World Economy.
Flóra Horti, Senior Sector Manager at MBH Bank’s Analysis Center, highlighted that the global tourism sector is nearing pre-pandemic levels, contributing 9% to the global GDP last year and expecting to contribute 10-11% this year. While Greece leads with a 20% share, Germany follows closely with a 9% contribution.
In Hungary alone, 7 million tourists visited the country during the summer. The government aims to boost tourism’s GDP share to 16% by 2030, necessitating 50 million overnight stays annually, thus focusing on airport development.
Recent statistics show a positive trend in July, with a rise of 11% in foreign travelers, a slight decrease of 0.5% in domestic travelers, and a 2% increase in overnight stays on a year-on-year basis. It is anticipated that tourism will reach pre-pandemic levels, supported by increasing real wages, SZÉP card expenditures, and normalized inflation rates. Budapest Airport is also experiencing a surge in traffic, surpassing pre-pandemic levels annually.
Although there has been a slight decline in domestic overnight stays, Hungarians continue to favor destinations abroad, with Croatia and Greece being popular choices. Hungarians typically allocate 4% of their annual income for domestic holidays and 5% for international trips, with Budapest attracting the most foreign visitors and Lake Balaton remaining a top destination for Hungarians.
On the EU level, the hospitality industry is grappling with a labor shortage, while the decline in the number of catering establishments is noted. Nevertheless, the popularity of the SZÉP card remains high in Hungary, with accommodation and catering sectors being the key areas of expenditure.
July-August emerges as the peak travel season for Hungarians, with most opting for a 4-7 day holiday financed from savings rather than loans. Credit card usage is prevalent abroad, with a rising trend in mobile phone payments. Despite digital advancements, physical card requests are common for car rentals and accommodation bookings.
The tourism industry remains optimistic about post-pandemic recovery, with Hungary continuing its efforts to enhance the sector’s contribution to the economy.
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