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Gov’t pays more than HUF 10 bln annually to Hungaroring

The Hungarian government grants more than HUF 10 billion annually to the Hungaroring Formula 1 motorsport racetrack in Mogyoród (22 km northeast of Budapest), which is owned by Austrian company Ostermann Kft., news portal reported.

From 2010 to 2018, Ostermann made HUF 2.4 bln after-tax profit and operated with a 19% profit margin.

The share of ticket sales within Hungaroring’s revenues is weakening, meanwhile, with some 71%, or HUF 13 bln, coming from state grants last year, noted.

Calculating with three guest nights and nearly 30,000 foreign visitors to the event, some HUF 289,000 would have to be spent by each foreign guest to cover the costs of the HUF 13 bln state grant, calculated.

An average visitor to Hungary spends HUF 15,000 a day, according to the Hungarian Tourism Agency, which means that Hungaroring’s state money is financed mainly by taxpayers, noted.