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MAN2115
UK
University of Surrey
Hungary is well known for its tourism and has a long history attached to it. In 2002, Hungary was amongst the top most visited countries, by tourists in the world. It was ranked thirteenth (Hudman, 2003). The country offers numerous options to tourists, ranging from ancient to modern. Mostly, Hungary receives its tourists from European countries comprising almost 98 percent of them (Medve, 2021). The outline of the paper includes a total of 4 Los from LO4 to LO7 discussing Hungary tourism concerning its geopolitical location, its appeal, types of tourists, social and economic impacts. The economic impact further explains the tourism trend in Hungary with facts and figures. Social implications explain the attitude and behavior of inhabitants towards tourism.
Hungary is filled with natural beauty and also equipped with modern facilities providing the best experience to its tourist and locals too. The country is popular for its breathtaking sights of countryside, some of which are unexplored and untouched. The influxes of tourists are mostly from European countries. Hungary is a member of the European Union which adds an advantage to its tourism industry due to the free flow of movement in the entire continent except for a few EU member countries. Furthermore, Hungary has signed Schengen Agreement, making the country open and less hassle for other Schengen members for immigration or traveling purposes (European Commission, 2022).
In addition, there are other factors as well, such as famous wine regions, spiritual thermal spas, and national cuisine. Hungary offers a variety of options to diverse types of tourists. The needs of tourists vary a lot. Thus, the tourism types laid down by the sociologist Cohen are based on similarity of choice and novelty amongst individuals or groups. These are explorer, drifter, individual mass tourist, and organized mass tourist. Hungary witnesses both inbound and outbound tourists with Multi-Centre destinations for holidays.
Rural tourism is emerging as a niche market in the tourism industry due to its undiscovered and untouched serene areas. UNESCO has preserved Holloko village as a World Heritage site (UNESCO, 2022). Rural tourism is preferred by those looking to escape the concrete jungle of the city and relax in the countryside. Rural areas are also preferred by tourists for wellness purposes. Hungary is also preferred for health tourism, which includes wellness, leisure, spiritual, holistic, medical, and recreation purposes (Csapo, 2017).
In the tourism industry, the number and popularity of attractions play a crucial role in determining a destination’s position. Hungary covers all the four categories of attraction of tourism industry, such as Natural, heritage, modern, and event attractions.
The National Tourism Development of Hungary gives paramount significance to improving the quality of life of the Hungarian people (Berbekova, 2021).
Hungary is a landlocked country on the European continent. It is located in central Europe. It shares its border with numerous Countries, Cities, and International borders. Hungary is surrounded by Slovakia, Serbia, Croatia, Austria, and Romania from the North, South, West, and East, respectively. Also, it shares a border with Slovenia from the southwest and Ukraine from the northeast (Nations Online, 2022). Budapest is the most popular in Hungary tourism. It is also the capital of Hungary. Globally, it is regarded as one of the most beautiful cities.
Hungary’s geopolitical location makes it desirable in the tourism industry. Its culture has a presence of both eastern and western influence, attracting millions of tourists each year. Due to cultural familiarity and central location the tourism industry is in a boom. According to WTTC and UNWTO, Hungary is expected to intensify its growth and popularity in the tourism industry in the coming years.
The right balance of modern-day high-tech and convenient features, and ancient and original charm, place Hungary amongst the top tourism countries.
Hungary has been at 13th rank in tourism popularity due to its geopolitics and culture in addition to this, the following are some of the factors that are appealing for the tourists: (Hall, 2004)
Cuisine- Hungarian cuisine is popular amongst tourists. With the advent of social media, Hungary became frequent food bloggers’ favorite destination. Cuisine plays a crucial role in promoting tourism. Survey shows tourists visit frequency is higher where appeals of its gastronomic feature are high. Hungary is rich in traditional dishes and flavors, making it an appealing tourist destination.
Climate- The country enjoys tourists throughout the years owing to its continental climate. When compared with summer the flow of tourists in winter is relatively less. However, the country’s traditional festivals during Christmas attract tourists. Its pleasant climate makes it the most preferred amongst tourists.
Geo-political location- Hungary is a landlocked country in central Europe. It offers a perfect ancient and modern blend. The unique geographical features of the nation are the Danube and Tisza rivers that run through it. Hungary is blessed with nature, ranging from scenic mountains to luscious greenery. In addition, it has around ten national parks and hundreds of nature reserves. The government has also declared several areas under environmental protection. Hungary has hundreds of public ‘baths’ with thermal water rich in minerals. It is considered to have healing and soothing properties. Lake Heviz and Balaton also add Hungary in tourism preference.
Architecture- Hungary is well-known for its thousand-year-old cities, especially it's capital city Budapest. The country provides a unique blend of ancient and modern architecture. It has some of the most prominent architects in the world. UNESCO nominated Budapest for its design for a creative city (Dávid, 2012).
Conveyance- Hungary’s convenient and affordable conveyance makes it a reliable and great tourist destination. The country provides support to its travelers and tourist population very well. Travel within and outside Hungary is feasible due to its well-connected rail networks. Additionally, boats, buses, and trams are some of the best alternatives to travel in Hungary. Conveyance is cheap and safe.
Hungary provides a unique experience to its tourists via its historical, modern art and architecture, traditional cuisine, pleasant climate, safe and affordable conveyance.
A TALC model published by R.W Butler in 1980, explains the evolution of tourist destinations through six stages of their life cycle i.e., by involvement, exploration, consolidation, development, decline, stagnation, or rejuvenation.
The 6A’s of tourism destinations, such as Accessibility, Activities, Amenities, Attraction, Package Availability, and Ancillary Services. They make certain destinations preferable amongst tourists even in the dynamic and competitive tourism industry (Tóth, 2010). Hungary fulfills most of them, hence a popular destination for tourism. In addition, proper management improves tourists’ experience. The tourism industry in Hungary contributes a significant portion to the GDP of the Country. Hungary enjoys full governmental support for boosting the tourism industry further. The state government is involved in the major development of tourism which has become an important phenomenon of the Hungarian economy.
Hungary tourism has witnessed phenomenal growth in contributing to the economy over some time. In 2007, tourism alone contributed 6.5% directly and 10.2% indirectly to the GDP of Hungary. It also increased the rate of employment by 9.6%. In 2018, travel exports covered 23.5% of the total exports. In the same year, Hungary had the highest number of tourists around 15 million ( OECD, 2020). Domestic tourism also contributes significantly to the economy of the country.
Prior pandemic, Hungary had more than 61 million tourists. Around 17 million of them had overnight trips in 2019. In addition, local people of Hungary also take trips within the country for leisure activities, such as shopping, sightseeing, countryside trips, visiting friends or relatives. Approximately, local residents spend over 390 billion forints on domestic tourism. The majority of international tourists are from Germany, Romania, Austria, and Slovakia, contributing significantly to the GDP of Hungary. Over the years, Hungary has seen a sharp increase in accommodation and tourist-centric establishments. In 2019, the tourist accommodations of Hungary recorded more than seven million domestic visits and six million international tourists (Eurostat, 2021).
The Covid-19 pandemic affected the tourism industry all around the globe, including Hungary. However, Hungarian tourism is expected to achieve over 900 million U.S dollars in 2022. Even in Pandemic, is Even though the outbreak of the coronavirus (COVID-19) pandemic had a negative impact on the travel and tourism sector, Hungary’s revenue from travel and tourism is expected to reach 944 million U.S. dollars in 2021. As compared to 2010, Hungary's tourism reached 5.4 billion U.S. dollars (Medve, 2021).
The government has made a strategy for tourism development to achieve by 2030 and the focus is to promote both rural as well as urban tourism. Another objective is to make tourism is a major contributive sector for the Hungarian economy, by generating employment and income for the local people. Furthermore, to promulgate the culture, cuisine, and values of Hungary (Government of Hungary, 2017).
The following is the table representing the number of tourists and their contribution to the GNP of Hungary
Table 1: Contribution of Tourism in GNP of Hungary (UNWTO, 2020)
The above table indicates the direct relationship between the number of tourists and the increase of GNP in Hungary. The reason is an obvious influx of tourists creates employment in the country, making tourism a driving force of its economy.
The tourism industry requires a developmental strategy to serve efficiently to the tourists. The strategy demands the intervention of the government and the cooperation of locals.
Figure 1: Forecast of the tourism sector GDP share in Hungary from 2010 to 2025 (Degenhard, 2021)
The above graph shows the contribution of tourism to GDP in Hungary. It also shows the prediction for the year 2025. The impact of Covid -19 is evident; however, nations’ resilience in overcoming the crisis is due to its popularity amongst tourists. Despite Hungary’s size, it has dominated European tourism.
The tourism industry has a multiplier effect in Hungary. Expenses incurred by the tourists generate income for the country. The direct, indirect, and induced expenses of tourists help in creating jobs for the locals and generating income (Michalko , Kis, Kovacs, & Sulyok, 2010). Destinations with a high influx of tourists are more economically stable and advanced. People tend to move to places where income generation is high. Thus, Budapest is the most populated city in Hungary (Medve, 2021).
Research shows both positive and negative effects of excessive tourist inflow. The positive impact of tourist traffic is directly linked to the monetary benefits accrued to the people and the GDP of the country. The heavy influx of tourists tends to get commercialized by aggressive developments, advertising, and overcrowding of such destinations which in turn decreases its aesthetic charm and hampers tourists’ experiences. In the long run, it leads to the depletion of cultural and natural resources and increases pollution. In a monetary aspect, it increases the prices of generic services, real estate, rental fees, commutation, affecting the daily lives of the local people. Similarly, in Hungary, the cost of living has been considerably increased due to the heavy influx of tourists.
In Hungary, Budapest city is among the most affected urban areas of Europe facing the pressure of overwhelming tourists. One probable reason for that is the decreasing ability of the city due to overcrowding and seasonal mismanagement of tourism. Another indicated reason is the lack of local residents’ inclusion.
The phenomenon of overcrowding also impacts the life cycle of the destination. The consolidation stage of Budapest's life cycle is in an overdeveloped state, and not pacing into stagnation. The irritation of locals is augmented with the overcrowding of tourists in the city, making it congested and thus unlivable. However, there is still hope for Budapest to reach such heights of irritation. Some of the recent research describes the Budapest situation as alarming requiring urgent government intervention to curb the traffic congestion of tourism.
Figure 2: Traffic problems in Budapest (Remenyik, Horvath, & Vasa, 2021)
The above diagram shows problems associated with traffic tourists. Further, the increasing number of tourists causes a change in the attitude and behavior of locals towards tourists. This is due to the social effect of overcrowding in a certain place depending on the adaptability of the residents. The majority of Hungarian people are flexible and hospitable. They take pleasure in being a host and socializing, and are proud of their culture and cuisine. However, they are nostalgic and somber people, if the situation of tourist congestion continues then the attitude and behavior of inhabitants may differ because of its negative impacts.
The tourism industry in Hungary has been growing rapidly for decades. It is one of the driving forces of the economy of the country. Owing to its cultural and central geopolitical position within Europe makes it a preferred tourist destination. Budapest is the most visited and popular city in Hungary. The number of both inbound and outbound tourists is high, creating a multiplier effect in the country. It has largely helped in raising the rate of employment and family incomes. Since 2010 the development of establishments and tourists facilities has been at an all-time high. The government has identified improvement areas to be achieved by the end of 2030. Development plays a crucial role in promoting tourism in a dynamic and competitive. The negative impact of the high tourism rate is being felt in Budapest. The cost of living has been increasing for decades.
Despite the growth and progress of tourism in Hungary over the past decades, improvement is still needed to continue the pace. The Capital city of Budapest receives millions of tourists throughout the year, putting pressure on the government to address the problem of accommodation and other tourist facilities. Such problems are evident due to the size of the country. The Hungarian government is aware of the prospective challenges in the tourism industry. Hence, laid down 2030 strategy plan for tourism development. Thus, to keep up with the dynamic and competitive market rapid development is required in the country to seek more or at least maintain the influx of tourists. I recommend, taking into consideration of local communities also since their lives are also dependent on the planning and strategies of the government. Budapest has become expensive and crowded due to the heavy flow of tourists, affecting the lives of local people. In my opinion, a balanced strategy of development with the fulfillment of basic local needs is recommended.
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