Skimpy-spenders Cause Airline Bankruptcy

Foreign tourists are tending to stay for shorter periods in Hungary and to spend less, the Central Statistical Office (KSH) says. The number of foreign visitors staying more than one day fell from 5.3 million in 2011 to 5.1 million last year while day visitors rose from 31 million to 33 million. Spending per day dropped for both day visitors and those staying longer, with the first group spending HUF 10,200 (EUR 34, down from HUF 12,100/EUR 40) and the second HUF 17,300 (EUR 58), down from HUF 19,500 (EUR 65).

KSH analysts link the trend towards shorter and cheaper visits to the bankruptcy of national airline Malév in February 2012 and its replacement by low-cost carriers, with data from Budapest Airport providing a measure of confirmation.

“The airline mix changed from around 75 per cent full-service and 25 per cent low-cost in 2011 to around 50/50 in 2012”, and the balance is expected to remain the same for the foreseeable future, Budapest Airport aviation director Kam Jandu told The Budapest Times.

Slightly more travellers from lower socio-economic segments have travelled to Budapest since the demise of Malév, but the ending of Malév transfer passengers means more people arriving in Budapest Airport will visit the city rather than simply stay in transit at the airport, Jandu said.

“If economic contribution to the economy by way of tourist room nights and expenditure are concerned, the post-Malév era has generated much more than during Malév’s operation,” he said.

Secretary general of the Federation of Hungarian Hotels and Restaurants István Kovács gave a more reserved assessment. The expansion of low-cost carriers including Ryanair and Wizz Air has brought more sightseeing and leisure tourism, including from new countries, but Malév’s removal from the air traffic map has resulted in a decline in business and conference tourism, he said.

The number of participants in international-standard conferences increased from 125,000 to 135,000 between 2011 and 2012, but the number of conferences declined 16.1 per cent to 505 and the number of conference days fell 17 per cent to 1,717, the Hungarian Convention Bureau has announced.