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Analysts project difficult year for tourism sector

Accommodation service providers can expect 2%-5% drop in guest nights and 5%-7% drop in tourism revenues in nominal terms this year, a report published by MKB CEB Online on Monday shows.

The report prepared by analyst 7 Sigma shows that accommodation service providers in higher categories will be especially affected by the stronger forint, while the shrinking of domestic demand will affect lower category accommodation providers. The strong forint will encourage more Hungarians to travel abroad but a drop in real wages is expected to have an overriding effect. As a result, travel agencies can expect stagnation or a slight drop in revenues in nominal terms, the report said. The number of tour operators can be expected to drop in the medium term because the market is already saturated. In keeping with the modernization of society, tourism companies will also have to face new forms of competition, such as online tour operators from Hungary and abroad, the report said. (Mti, Magyar Hirlap)