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Nov 21, 2016

Hungary to invest 21 billion HUF to boost tourism

The Hungarian government would like to see tourism pay a bigger role in supporting economic growth and job creation

Hungary is to invest 21 billion HUF to boost tourism next year, it has been announced.

László Kövér, president of the Hungarian National Assembly, told guests gathered at the opening of a new hotel and medicinal spa designed to attract visitors from neighboring countries that the investment will boost economic growth in Hungary.

Longer term funding will come in part from a 4 percent tourism development tax to be introduced in 2018, Kövér said. The money will go to improve accommodation quality as well as for marketing and to fund events that attract tourists, he added.

The government would like to see tourism pay a bigger role in supporting economic growth and in job creation, the speaker said.

In the European Union's 2014-2020 financing timeframe, about 400 billion HUF will be devoted to upgrade settlements along Hungary's borders, which includes improving infrastructure, healthcare, education, tourism and research. Private businesses may bid for funds, he added.

According to statistics, the number of visitors to Hungary grew by 39 percent between 2010 and 2015. That means the guest population was slightly higher than the overall Hungarian population of 10 million.

At the same time, the gross cash inflow to tourist accommodations was up by over 50 percent.