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

3. FIGURES / YEAR VISITORS: 38,6 MILLION GUESTS: 7 MILLION GUEST NIGHTS: 19,3 MILLION RECEIPTS: 3,4 BILLION EUR (2005) TOURISM IN HUNGARY ECONOMIC IMPORTANCE GDP (indirect): 8,5 % Employment (direct): 398 000 employees 8,9 % of total employment 3-4 % increase is expected in 2006 Foreign guests : Domestic guests = 50:50

4. ~ 70 % of Guest Nights Spent in Hotels 814 Hotels in Hungary Outstanding Growth in –4 & 5 Star Hotels: + 13 % –Wellness Hotels: + 65,7 % –Spa Hotels: + 8,7 % –Apartment Hotels: + 47,4 % (guest nigths, 2005.) HOTELS IN HUNGARY Revenues at commercial accommodations in 2005 0,85 billion EUR + 12,6% 87 % of all revenues realized at commercial accommodations 2002 UNITS 2005 UNITS 2005/2002 4* hotels80117+46% 5* hotels121818+50%

5. Accommodation

6. MAIN SOURCE MARKETS GERMANY GREAT-BRITAIN AUSTRIA ITALY USA NORDIC COUNTRIES THE NETHERLANDS 75 % OF GUEST NIGHTS FROM EUROPEAN UNION COUNTRIES PRIORITY SOURCE MARKETS EMERGING MARKETS France Spain Japan Russia China Poland Israel Romania

7. TOURISM MARKETING COMMUNICATION IS FOCUSED ON 4 KEY PRODUCTS: BUDAPEST LAKE BALATON HEALTH TOURISM BUSINESS TOURISM ONE OF THE HOTTEST TRAVEL DESTINATIONS TOP PRIORITY: BUILDING AND IMPROVING THE IMAGE OF HUNGARY AS A TOURISM DESTINATION

8. 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 Europe’s Largest Parliament Europe’s Largest Synagogue BUDAPEST – The capital city 2,5 million guests (+8,7%) 6,4 million guest nights (+6,6%) Average length of stay - 2,6 nights 14 five star and 40 four star hotels in Budapest In 2005:

9. BUDAPEST

10. Culture and more … not only in Budapest

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

12. LAKE BALATON

14. HUNGARY BOASTS THE WORLD’S 5TH LARGEST SUPPLY OF THERMAL WATERS medicinal spas medicinal spa-hotels wellness-hotels ancient bathing culture still operating Turkish baths from 16th C. SPA AND WELLNESS Guest Nights in 2005 WELLNESS HOTELS: Domestic +99% Foreign +18,8% SPA HOTELS: Domestic +13,1% Foreign + 5,7%

15. SPA AND WELLNESS

16. 40-50% hotel guests come on business New 5000-seat congress center to be built in Budapest Number of conferences growing continuously –5,4 % more conference guests in 2005 –average lengths of stay over 4 days MICE – BUSINESS TOURISM *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. BUDAPEST IS THE 8TH MOST POPULAR CONFERENCE DESTINATION IN THE WORLD*

17. MICE

18. Active Holiday

19. Excellent Hungarian food and drinks flavour the time spent in Hungary

20. NATIONAL STRATEGY OF DEVELOPING TOURISM - NSDT 2005-2013 Adopted by the Government on September 28, 2005 Drafts the future development of the tourism sector in Hungary Made in line with European Union directives Financing: Private Capital + European Union funding

21. NATIONAL STRATEGY OF DEVELOPING TOURISM - NSDT 2005-2013 NEW APPROACH: Tourism is part of life, not only an economic sector  Top Priority: improving the quality of life NSDT is based on 5 pillars: 1.Competitiveness & Sustainable Development 2.Supply & Promotion 3.Infrastructure 4.Human Resources Development 5.Institutions of Management & Development

22. NATIONAL STRATEGY OF DEVELOPING TOURISM - NSDT 2005-2013 PRIORITIES OF PRODUCT DEVELOPMENT ON A NATIONAL LEVEL: Health Tourism Heritage Tourism Congress Tourism

23. NATIONAL DEVELOPMENT PLAN II - NDP 2007-2013 Hungary submitted the NDP I to the European Commission for the period of 2004-2006 NDP I relies on the resources of all Structural Funds Three specific objectives: More competitive economy Improved use of human resources Promotion of a better quality environment and regional development Tourism related sections of NDP II. (2007-2013) will be based on the National Strategy of Developing Tourism

24. A LOUD WELCOME

25. THANK YOU FOR YOUR KIND ATTENTION ! WWW.HUNGARY.COM