Chaos in the West, security at home: tourism can catch up again around the corner

The spread of Airbnb and similar platforms has radically transformed the urban real estate market and the structure of tourism, therefore both from the perspective of the housing crisis and sustainable urban tourism the regulation of short-term housing rentals is crucial and very timely, of which there are many international examples – the CEO of Digitális Turizmus Zrt. told Economx.

David Rastovits he talked about the essential elements of the government’s 16-point tourism action plan announced last week, which is part of the newly submitted Airbnb law proposal for social consultation.

We wrote it: as part of the New Economic Policy Action Plan next year the annual flat rate tax payable for private accommodation will be increased fourfold, i.e. from HUF 38,400 to HUF 150,000 in the capital, and the market will be “frozen” for two years, meaning that no new apartments can be registered in the system until 2027.

Regulation is desirable, as it is now clear that the excessive rate of housing rent has a negative effect on local communities – increases housing prices and changes the social structure of neighborhoods.

The example of the decision in Terézváros already shows that the real estate market can be balanced and stabilized within strict limits, and the tourist offer can be more optimal in the given area, said the CEO, emphasizing that all of this supports the strategic goals formulated in the traction sector in the long term.

The boss of Airbnb disagrees

The city fell short of its goals, but the politics surrounding Airbnb became hostile, Airbnb co-founder and CEO Brian Chesky told the Frankfurter Allgemeine Zeitung. in an interview in connection with the fact that a law has been in effect in New York for a year that significantly limits short-term housing rentals in order to drive the housing back to the sublet market. Brian Chesky pointed out that, according to him, this has not been achieved, because according to the data since then, long-term rents have continued to increase by more than 3 percent, while hotel rooms have increased in price by 7 percent, making New York less affordable for tourists.

He who can be safe will return

Dávid Rasztovits sees it as: the security measures included in the tourism action plan are also fundamentally decisive in the capital’s party district, which represents one of the main attractions of night tourism. As he said

one of the cornerstones of the sector is the feeling of security, which directly affects the decisions of travelers.

The party quarter is different every year attracts hundreds of thousands of tourists to the country, this form of entertainment should not be condemned, but increasing the police presence and creating an independent police station is a desirable and important decision, he said.

David Rastovits

Image: Economx / Tamás Nagy Hartl

Moreover, it not only helps to maintain order, but It also increases the positive image of Budapest is that the subjective sense of security may increase in visitors.

That’s according to him a prominent competitive factor in times when to the west of us, the press is abuzz with attacks on ordinary people and tourists.

Strengthening public security is also of strategic importance because news of a potential incident or bad guest experience can be spread on social media in no time, which can cause serious damage to the city in the face of all well-intentioned, conscious marketing.

The message of safety also contributes to the fact that tourists who leave with pleasant experiences are happy to choose Hungary as their destination again.

he noted.

Similarly, it directly affects the tourist experience the preparation of tour guides also significantly influences the image of the country, since they often convey the local culture, our values, and their historical significance to the guests.

Therefore, according to him, the planned knowledge renewal training in this area is crucial.

The new tipping system encourages employment

The regulation of tipping and service charge answers many contradictions – the former will be cash-free in the future, while the latter will be capped at 12 percent by the Ministry of National Economy.

The fair income of employees is supported by the regulation of the service charge, which is why it encourages employment, while it makes restaurant prices more transparent and affordable for consumers.

This measure creates a balance between the profitability of the catering establishments and the satisfaction of the guests the sector will be more economically sustainable said Dávid Rasztovits.

In addition, since digitalization is increasingly permeating tourism as well, the spread of cashless payment systems is essential in the modern industry ecosystem.

Image: Getty Images

The tax-free handling of tips and the introduction of a “tip button” available on digital terminals simplify transactions, while increases employee satisfaction and transparency he thought.

Young people expect convenient solutions

For the new generations technological comfort is anyway a basic expectation, that’s why he thinks digital developments are not worth avoiding, because it makes service providers more competitive. Hungarian companies are continuing to catch up in this area, but compared to foreign competition, there is still room for improvement he said.

The introduction of the digital SZÉP card is another step towards sustainability, which facilitates the use of services in domestic tourism. He pointed out:

mobile phone access will be much more comfortable, which can increase the amount spent in the sector by simplifying payment processes.

In the same way, the expansion of NTAK data collection with the traffic of tourist attractions such as the Parliament, ecclesiastical monuments or light railways is also a significant step forward, and in tourism policy prepares effective support decisions.

The development of Budapest Airport brings you into the situation

The CEO touched on it: the modernization of the airport of strategic importance in the development of our tourist infrastructure.

One of the most important steps, for example the abolition of the CO2 tax next year and the renovation of the expressway leading to the airport, which directly increases the country’s competitiveness in Europe.

As well as safety, so does the quality of aviation services and an easily accessible airport plays a critical role in making Hungary an attractive destination in the international offer.

With every tax forint spent on the airport, we strengthen our role in the Central European region

he said.

Image: Economx / Tamás Nagy Hartl

Mainly because, for example, in our largest western partner, the Germans, the aviation market is suffering more and more spectacularly from excessive taxation, which causes a significant loss of income and a competitive disadvantage to the airlines, tourism providers in the country, and thus to the state.

They rebel against high taxes

The Aviation Industry Association is demanding the abolition of the air traffic tax, which has been in place since 2011 but was increased by 25 percent this May, the reduction of security inspection fees and state support for the sector in Germany, where taxes and duties already amount to 30 euros in ticket prices for departing flights. The high cost puts German aviation at a serious competitive disadvantage, which is recovering more slowly after the corona epidemic due to high state costs. Earlier, Eurowings and Ryanair also announced significant flight reductions in response, but now the outrage has reached industry proportions, because flying is no longer affordable in Europe’s largest economy – writes Die Zeit. Tempers are also running high in Brussels, where flights departing every Tuesday at South Charleroi Airport (BSCA) have been canceled due to another strike by security staff – he announced a Brussels Times.

In the heart of Europe: worldwide demand for green travel is high

Guest traffic statistics and, for example, Budapest Airport’s near-record passenger traffic this year prove that

Hungary’s tourism is heading back to the pre-Covid golden age. Therefore, the action plan arrives at the best time, all its elements aim in the right direction and determine the development path for years

– stated the specialist.

A event tourism its multi-level incentives can, for example, position both the capital and the countryside strongly – for the latter the expansion of village hospitality also serves to reduce regional inequalities, it ensures the livelihood of thousands and also promotes sustainable tourism.

Supporting authentic, rural accommodations not only stimulates the local economy, but also offers an experience-based tourism model that brings regional cultures and our natural beauties closer to peoplewhile the expansion of agritourism creates new jobs and sources of income, he said.

In addition, the expansion of rural tourism is in line with global trends, which, since the pandemic, have put a lot of emphasis on local experiences, cultural and environmental sustainability – and so on Hungary can even become one of the European centers of “green tourism”.

Source: www.economx.hu