Hungarian baths revenue fall 50% this year
Revenue of Hungarian spas and baths has fallen at least 50% this year because of the pandemic, and 76% will become insolvent by next spring without assistance, the head of the Hungarian Baths Association said, according to profitline.hu.
László Attila Boros said baths will be forced to lay off 4,700 people without immediate government intervention, according to the associationʼs latest representative survey.
Three-quarters of staff at baths have been forced to work reduced hours, he added. He urged the government to set up a HUF 35 billion liquidity fund to make up for lost revenue and preserve jobs at baths, noting that 93-95% of baths are owned by local councils and are ineligible for government credit programs.
Boros said Hungaryʼs baths employ about 18,000 people and generate HUF 95 bln-100 bln a year, under normal circumstances. About 71% of all guest nights in Hungary are spent in spa towns, he added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.