Gov’t announces HUF 300 bln tourism development program

Initiatives

Minister of National Development Miklós Seszták today announced the launch of a tourism development program in which HUF 300 billion will be made available for commercial accommodation developments across the country by 2030, Hungarian news agency MTI reported.

The money earmarked for the program, dubbed the Kisfaludy Tourism Development Program, will come from exclusively domestic resources, with HUF 150 bln, or half of the total, in the form of government grant money, the minister said. Applications could be submitted starting from September 30.

A total of 2,000 accommodation sites or 30,000 rooms are to be refurbished under the program, which is expected to create 5,000 jobs, Seszták said. The renovated accommodation could raise revenues by 20% as a result of the developments, he added.

The aim is to raise the contribution of the tourism sector to Hungaryʼs GDP to 16% by 2019, from over 10% at present. 

Applicants may cover on average of no more than 50% of their expenses from the Kisfaludy Program, but may also cover at most 30% of project costs through preferential loans, developed by the state-owned Hungarian Development Bank (MFB) specifically for the program, said MFB Chairman-CEO Tamás Bernáth.

The maximum loan to upgrade or expand existing facilities is HUF 500 million, and is available up to annual revenues of HUF 15 bln. The MFB would lend HUF 500 mln-HUF 3 bln to newcomers in the field. The MFB loans will be for 2-15 years and will be available at almost all Hungarian banks.

The MFB will be the strategic partner of the Hungarian Tourism Agency (MTÜ) in future developments, Bernáth noted. 

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