1. Current Issues in Tourism Policy Making in Hungary Dr Andrea Nemes Director General Tourism and Catering Department

2. Current Issues of Tourism Policy in Hungary

3. 3 National Tourism Development Concept 2014-2020

4. 4 Objectives Innovative, creative, high- quality product and supply development Strengthening the institutional system of tourism based on destination management organizational co-operation Development of an environment which can improve our competitiveness, job preservation and creation International and Eastern opening, international marketing and sales promotion Horizontal principles

5. 5 Szechenyi Recreation Card (SzRC) – A Means for Encouraging Domestic Tourism

6. 6 What is SzRC? Through the tax system the Hungarian state encourages the employers to give non-wage benefits as they can be provided to the employees under more favourable taxation conditions than salaries. A net wage of 100 forints costs now 196 forints to the employers, while a net fringe benefit of 100 forints costs only 135.7 forints to them. The fringe benefit system can provide additional resources to important social and economic policy objectives, as all the benefits are earmarked. SzRC is a type of fringe benefits which can be used for purchasing tourism-related domestic services.

7. 7 Accommodation sub-account (750 EUR) Catering sub-account (500 EUR) Leisure sub-account (250 EUR) All types of accommodation services Spa and lido tickets Domestic travel package Restaurants and canteens Cultural services: e.g. festival, concert, theatre, museum tickets Sport services: fitness center, swimming pool, ski resort ticket, rental of sports equipment Amusement park and zoo tickets Certain types of health care services etc. +

8. 8 The System of SzRC and It’s Results Until 31 July 2013 EMPLOYER ISSUER EMPLOYEE SERVICE PROVIDER cash voucher service Employer: 21,897 Employee: 858,114 Service provider: 49,049 Amount transferred to SZEP Cards in 2013: EUR 153 million Amount spent from SZEP Cards in 2013: EUR 129 million

9. Tourism Trends in Hungary - Statistics

10. 10 Number of Guest Nights at Commercial Accommodation, 2007-2012 Source: HCSO

11. 11 Hungary’s TOP 10 Sending Countries CountryGuest nights at commercial accommodation, 2012 2012/2011 (%) 1. Germany2 146 491+3.1 2. Austria804 268-0.6 3. Italy624 459+18.1 4. Russia614 077+32.9 5. United Kingdom608 112+12.8 6. the Czech Republic 538 591+4.8 7. Poland485 062+8.3 8. the Netherlands459 543+36,6 9. USA450 573+0.1 10. Romania 419 030+0.9 Source: HCSO

12. Russian Tourists in Hungary - Statistics

13. 13 Number of Russian Guests at Commercial Accommodation, 2007-2012 Source: HCSO Guests 2012/2011 +28.9% Guest nights 2012/2011 +32.9%

14. 14 Russian Tourists in Hungarian Spa Hotels According to the number of guest nights Russia is the 2 nd most important source market In 2012  26 517 guests → +85% to 2011  201 344 guest nights → +80% to 2011 Average length of stay: 7.6 nights Source: HCSO

15. 15 Source: HCSO Russian Tourists at Commercial Accommodation, January-July 2013 Number of Guests Jan-Jun 2013/Jan- Jul 2012 (%) Number of Guest Nights Jan-Jun 2013/Jan- Jul 2012 (%) Commercial Accommodation 103 576+19.4417 351+21.8 From which: Hotels 100 549+19.7405 854+22.6 ~1/3 of Russian guest nights realized in spa hotels, where the average length of stay was 9 nights, while the number of guests was 14 625 and the number of guest nights was 132 149

16. Tourism Policy Priorities on the Russian Market

17. 17 Direct flights between Hungary and Russia Scheduled flights on the route Budapest-St. Petersburg and between Hévíz and Moscow are expected to be launched in the near future

18. 18 Visas Our objectives are – assist in simpler and faster procedures for the reception and consideration of visa applications – outsourcing of visa applications to attract more tourists and to facilitate the access for visas

19. 19 Medical Treatment, Rehabilitation Exploring opportunities for co-operation Our aim is to assist Hungarian spa resorts, spas and tour operators in meeting the increasing demand of the Russian market

20. 20 Ministry for National Economy Tourism and Catering Department Dr Andrea Nemes Director General Email: andrea.nemes@ngm.gov.hu andrea.nemes@ngm.gov.hu Thank you for your attention!