Are you sure?

Hungarian hotels see business picking up no sooner than H2 2010

Hungarian hotels have suffered a major setback because of the economic crisis and do not expect business to pick up before the second half of 2010, general secretary of the Hungarian Hotel Association István Kovacs told MTI.

Figures from the Central Statistical Office (KSH) show the number of guest nights spent at hotels fell 6% for Hungarian tourists and 11% for foreigners in January-September from the same period a year earlier. Hotel revenue dropped 9% at current prices.

The Hungarian Hotel Association welcomes a decision to apply the 18% preferential VAT to hotel services, but it is concerned that the decision to tax holiday vouchers will hurt business, Kovács said. Between 70% and 80% of domestic guests use the vouchers, he added.

A document that will provide the basis for hotel categories could be completed by the second half of 2010, Kovács said. A government decree will no longer make hotel categories mandatory from 2010, thus hotels will be voluntarily categorized, he added.

The Hungarian Hotel Association has more than 500 members who account for almost three-fourths of hotel rooms in the country. (MTI – Econews)