Budapest’s tourism boasted a record number of guest nights by the end of 2019

The number of Budapest guest nights showed a double-digit increase in December 2019, following the touristic growth that the city has been experiencing since October. Commercial accommodation revenues were close to HUF 14 billion (cca. EUR 45 million), and the Széchenyi Leisure Card’s spending value doubled. This analysis was performed by the Budapest Festival and Tourism Centre (BFTK). (Source: KSH Hungarian Central Statistical Office)

DECEMBER 2019: THE MOST LARGE-SCALE INCREASE IN THE PAST 2.5 YEARS

According to the newest data from KSH, 402,157 guests (+11.9%) spent 932,531 guest nights (+12.1%) in Budapest’s commercial accommodations in December 2019. This rate of increase is especially notable because the last time there was a double-digit increase in both dimensions was in June 2017, before the FINA Word Championships: at that time, 10.3% more guests spent 14.5% more guest nights in Budapest’s commercial accommodations compared to the same period last year.

The number of foreign guest arrivals (343,461) and guest nights (825,343) increased at a similar rate – that is, by +15.4 and +14.6%, respectively – in the last month of 2019, which has not happened in the past few years (more precisely, since April 2017) either.

The gross accommodation revenue for commercial accommodations (HUF 13,998,970 thousand) increased by 23.6%, while foreign accommodation revenues increased by 25.3% in December 2019 compared to the same month last year. This is a record in every dimension, especially if one considers that the revenues from domestic guests also increased considerably (by 9.6%, to HUF 1,333,038 thousand) in December 2019 after almost a year of decrease. Széchenyi Leisure Card revenues increased drastically as well: the card’s spending value was close to HUF 92.5 million in last December, which is almost double the amount realised in December 2018.

BFTK has been working towards extending the capital’s main tourism season that originally lasted from April until the end of October – and this has apparently paid off. The Budapest Advent and Christmas Fair at Vörösmarty Square with, its renewed offering and the event entitled “Advent at the Basilica” had a joint boosting effect on tourism; the latter was voted Europe’s most beautiful Christmas Fair by the readers of the European Best Destinations travel portal.

The United Kingdom is still on top of the list of source markets: In the last month of 2019, 34,797 British guests spent 94,971 guest nights in the capital, while Italy accounted for 25,852 guests and 71,887 guest nights. Israel, the dark horse in the race, earned third place (with 16,576 guests and 56,658 guest nights); the average stay of Israeli guests (3.4 nights) is well above that of all other source markets. German guests spent 45,222 guest nights in Budapest, Americans 44,033, French 39,437, Spanish 39,315, while Greek and Russian visitors spent 34 and 35 thousand guest nights in Budapest in December 2019, respectively. Interestingly, most guests in the last Christmas period (23–27 December 2019) arrived from Greece at Budapest hotels (taking up 10% of all guest numbers), who were followed by Italy (9.4%), resulting in the United Kingdom’s falling back to the third place (with 7.4%) instead of occupying its usual place on top of the list. This result is markedly different from the calendar year’s other periods.

THE MOMENTUM OF THE LAST QUARTER ENDED THE STAGNATION THAT CHARACTERISED 2019.

Perhaps the most important thing to be noted with regard to the capital’s touristic performance in 2019 is that the fourth quarter (October–December) successfully consolidated the performance of the whole year. The surprising result for October was followed by record numbers in November and December, both in terms of guest numbers and revenue rates.

Gross accommodation revenues amounted to HUF 170.1 billion (+11.0%) in January–December 2019, out of which HUF 155.4 billion (+13.0%) was generated by foreign guests. From November on, domestic accommodation revenues gained momentum as well, so by the end of 2019, 93.5% (HUF 14.7 billion) of the previous year’s domestic revenues was realised. Széchenyi Leisure Card’s total spending value was close to HUF 853 million, exceeding the 2018 value by 44.6%. The 74.2% room occupancy rate is largely due to the sudden tourism boost experienced in the last 2–3 months, which seems even more noteworthy if one considers that the bed capacity of Budapest commercial accommodations increased by 3,000 in a single year. The gross average price of a room in 2019 was HUF 28,175 (+7.6%), while the gross accommodation price revenue per available room (REVPAR) was HUF 20,901 (8.1%).

From January until December 2019, 4,577,963 guests (+2.0%) spent altogether 10,636,638 guest nights (+2.8%) in Budapest, which means that the number of guest nights has been increasing continuously since 2017, and amounted to 10 million for the third time in a row. During this period, close to 4 million guests (+3.3%) spent 9,410,941 guest nights in the capital, realising a +4.2% increase. Although domestic tourism was the “big loser” of 2019 (exhibiting a 6–7% decrease), Hungary continues to be the main source market of Budapest tourism.

There was close competition between Poland and the Republic of Korea (221,352 guest nights) for the 10th place during the whole year. The tourism potential of Asian countries significantly decreased due to the Hableány cruise ship’s tragic accident: August data were already affected by Korean guests’ insecurity, many of whom postponed or rearranged their visit to Budapest. Dutch, Danish, Swedish, Belgian and Finnish guests are also sorely lacking: the decrease rate was 7–16% in their case. To reduce the effects of this negative tendency, the Hungarian Tourism Agency organised a study tour for Scandinavian tourism professionals. BFTK also joined the initiative.

Considering the whole year, the Ukrainian source market was well above the average among Budapest’s source markets (+36% guests, +21% guest nights). The number of guest nights spent in Budapest increased in the cases of Poland (+15.7%), the Republic of Korea (+11.3%), Israel (+10.2%), France (+7.7%), Great Britain (+5.6%), Romania (+5.3%) and Russia (4,9%).

In conclusion, the trend that has characterised Budapest’s tourism in the past ten years is still going strong: guest numbers are showing growing tendencies, with a few ups and downs. Seasonality is seemingly being replaced by an even distribution of guests in the different seasons. Accommodation revenues exhibited a double-digit increase, which has a motivating effect on investors.