Tourism sector in Hungary. Sectoral Analysis

Transcription

1 Tourism sector in Hungary Sectoral Analysis Autumn 2005

2 ICEG EC Sectoral Analyses Tourism sector 2 Table of Contents Executive summary 3 1. Trends in the European Union and in the region 4 2. Evolution of the sector in Hungary 7 3. Market structure Regulation and policy measures Short- and long-term prospects Sectoral SWOT analysis 14 Appendix. Statistical data 15

3 ICEG EC Sectoral Analyses Tourism sector 3 Executive summary Global boom About impediments Hungary keeps pace with the trends What are the prospects? In 2004 the revenue of the entrepreneurs working in the tourism industry reached all-time high. Revenues from tourism and the number of travellers increased at the same pace, by 10.3 % and 10.7 % respectively. Total revenue grew from the previous year s USD 525 billion to USD 623 billion. Each continent, including all regions managed to increase their revenues. Calculating in own currencies it was Europe which had the weakest performace by its 2.3% growth, while Asia grew by 23.9 % Based on the preliminary data collected by the WTO it can be stated that favourable developments were maintained in 2005 though growth pace moderated. In the first seven months of this year 460 million visitors have been registered which exceeds the figures of this period last year by 5.9%. After the outstanding year of 2004 the degree of consolidation is promising, though looking through conservative glasses 4% average growth can be expected in the long run. It might be rather early to draw far-reaching conclusions concerning the long-term effects of Katrina and Rita, however a few short term consequences can already be seen clearly. One sector, cruise liners definitely came off badly. Before Katrina this subsector boasted 7-8% increase in the number of travellers, but in the rest of the year the growth is expected to diminish. Increasing oil prices make a negative effect on air transport. Despite the fact that assigning the impact of the increase in fuel prices is getting widespread, it is not fully possible due to the intense competition million foreign tourists visited Hungary in 2004, who spent 100 million days here altogether. They spent 2.9 days in Hungary on average. In the first eight months of 2005 occupancy rate of hotel rooms kept on increasing. In August 61.7% of the rooms were occupied compared to the 60% rate in the previous year and to the 57.6% in In the January August period commercial accommodations were used by 2.4 million foreign guests, who spent 7.6 million nights here. The former figure is by 5%, the latter one is by 1% higher than that of Within this, turnover of hotels increased by 1-5%, depending on the type. In our opinion in the next six months occupancy rates and room prices are expected to be higher than those of base months. Yet growth rate will probably decline, the dynamism of the past one and a half years is not expected to continue. In the short term the weaker position of the forint may have a positive effect on the returns of the sector.

4 ICEG EC Sectoral Analyses Tourism sector 4 1. Trends in the European Union and in the region 2004 was the year of change Each continent increased its revenue from tourism Now there are finalised data available for the evaluation of 2004, which exceed all previous expectations and even estimated figures at the beginning of Revenues from tourism and the number of passengers increased at roughly the same pace, by 10.3% and 10.7% (the latter is counted at current rates of local currencies, that is without the effects of currency movements.) Concerning the absolute figures in 2004 the revenue of entrepreneurs working in the tourism industry reached all-time high, as revenues grew from the previous year s USD 525 billion to USD 623 billion. USD 98 billion seems outstanding, however it was considerably supported by the depreciation of the dollar during last year. Calculations in euro show that the total revenues increased only by EUR 36 billion and reached EUR 500 billion in total. The relevance of these calculations is supported by the fact that 52 % of the revenues originated in Europe. Asia and Oceania added 20%, while America contributed 21% to the total revenue. The remaining 6% is shared by Africa and the Middle East. (See Appendix Table 1.) Development of revenues from the tourist trade Billions of US dollars % 60% 50% 40% 30% 20% 10% Dynamic increase in number of visitors World Europe Europe/World (%) Each continent, including all regions managed to increase their revenues. Calculating in own currencies it was Europe which had the weakest performace by its 2.3% growth, while Asia grew by 23.9 %. After a three-year-long gradual decline America also showed some progress, it exceeded its 2003 figures by 11.2%. Within Europe all regions reported increase in spite of their decrease in the previous years. The most significant growth was achieved by the Southern European region, its turnover increasd by 2.2%, while this figure was 1.2% in case of Western Europe, 4.0% in Northern Europe and 5.1%in Central Eastern Europe. Concerning the number of visitors WTO statisticians reported a dynamic 10.7% growth, so the number reached 763 million. Examining continents it was Europe again which showed the smallest increase, while Asia welcomed nearly 153 million tourists, which is 27.8% higher than in The most popular continent is still Europe having 0%

5 ICEG EC Sectoral Analyses Tourism sector million visitors. Asia is the second with the above mentioned 153 million visitors, America is on the third place having 126 million visitors. The most frequently visited country is still France Examining individual countries France was preserving its stable leading position. Last year 75.1 million tourists were interested in the sights of the country, while only 53.6 million visited Spain on the second place. The United States came in third as number of visitors reached 46.1 million by 2004 following the 40.4 million in the previous year. (See Appendix Table 2.) Share of continents in all tourists arrived 100% Africa 80% 60% Near East America 40% Asia 20% Europe 0% Favourable developments in 2005 as well Breakdown of the revenues by countries does not show any significant change, the countries taking the first seven places keep their positions. It is still the USA which has the highest revenue from tourism, in total USD 74.5 billion in 2004, followed by Spain and France with USD 45.2 billion and USD 40.8 billion. Based on the preliminary data collected by the WTO it can be stated that favourable developments were maintained in 2005, though growth pace moderated. In the first seven months of this year 460 million visitors have been registered which exceeds the figures of this period last year by 5.9%. After the outstanding year of 2004 the degree of consolidation is promising, though looking through conservative glasses 4% average growth can be expected in the long run. In the first quarter of the year 9% growth rate was measured, while in the second one it was only 4%. The main reason for the difference is that this year Easter fell in March unlike last year when it was in April. This resulted in 15% growth in number of visitors by March and stagnation in April. In May, June and July the figures were 7%, 6% and 5% higher than the base measured a year before. Slowing down within the year is not surprising. Experts had forecasted that dynamism would be more intense in the off-season and less in the high-season. The reason for this is the relatively reduced capacity of transport and accommodation capacities. Leisure tourism performed better than business tourism again. The market was dominated by short distance and short time trips. It seems that dominant spreading of long distance and longer time holidays again will be a slow and gradual process.

6 ICEG EC Sectoral Analyses Tourism sector 6 About hurricanes It might be rather early to draw far-reaching conclusions concerning the long-term effects of Katrina and Rita, however a few short term consequences can be seen clearly. One sector, cruise liners definitely came off badly. Before Katrina this subsector boasted 7-8% increase in the number of travellers, but in the rest of the year the growth is expected to diminish. After the disaster the US goverment rented three liners (room for people) for the following six months for the disaster recovery personnel. Further possible contingency is that finding accommodation for homeless people is still not solved, so there might be need for further units. Increasing oil prices make a negative effect on air transport. Despite the fact that assigning the impact of the increase in fuel prices is getting widespread, it is not fully possible due to the intense competition. At the same time more and more analysts consider that airlines will not be able to survive a new wave of increase in oil prices, thus they will have to include the whole increase in the price of fuel in their own prices.

7 ICEG EC Sectoral Analyses Tourism sector 7 2. Evolution of the sector in Hungary Signs of improvement are experienced in Hungary as well In Hungary travel related net revenues in 2004 were EUR 962 million. In the same period current account deficit was EUR 7.1 billion. The travel related net revenues in balance of payments resulted from credit of 3265 million EUR (foreigners paying for services in Hungary) and debit of 2302 million EUR (Hungarians travelling abroad). The first half of this year was slightly more favourable. The revenue of EUR 1711 million was offset by spending of 1181 million EUR, so in the June period the balance was positive (EUR 530 million). Parallelly, current account deficit reached EUR 3246 million in the first half of the year. (See Appendix Tables 6-7.) Travel services in balance of payments (m EUR, four quarters rolling average) net (right scale) debit credit Q 95 4Q 96 4Q 97 4Q 98 4Q 99 4Q 00 4Q 01 4Q 02 4Q 03 4Q 04 12,7 million tourists arrived last year In million foreigners visited Hugary with the purpose of tourism. Besides that 24 million other visitors entered the country as transit passengers or with shopping, employment, work or other purposes, so passenger circulation exceeded 36 million. Nearly two thirds of visitors came for one day and did not stay overnight, but also another one fifth of them arrived for a short time of 1-3 days. The number of the ones staying for a longer period was about 6 million (17%). Foreigners spent 100 million days in Hungary on the whole, 70% of which 36% of visitors spent more days here. It means that foreigners visiting Hungary spent only 2.9 days here on average, which is fewer than the numbers of European countries with considerable tourist attractions. Motivation of three quarters of visitors staying for more days is tourism, within this proportion of business tourism is 13%. Most business travellers came form Germany and Austria. The significance of business travellers was the greatest in the case of visitors from the United Kingdom (one quarter of all passengers). The half of the total number of passengers arrived form the current member states of the EU

8 ICEG EC Sectoral Analyses Tourism sector 8 (51%). Division of foreigners visiting Hungary by the purpose of visit Other 6% Business travels 5% Transit 34% Shopping 22% Holiday travels 33% Leisure tourism has significant importance Which are the most frequently visited regions? Further increase in % of the revenues from all foreign visitors, namely HUF 493 billion was connected to holiday travels and 13% or HUF 105 billion to business travels. Spending of visitors with the purpose of shopping made up 17% (HUF 136 billion) and transit passengers accounted for 6% (HUF 47 billion). One-day visits accounted for 23% of the revenues, while longers visits made up 77%. Average daily spending of vistitors in Hungary was HUF Popularity of different regions shows significant differences. One day travellers visited the regions near the borders obviously. More than one third of the visits took place in the Western Transdanubia region, followed by Northern Great Plain (22%) and Southern Great Plain. The most popular destination for visitors spending more days in Hungary was the capital (29%). Western Transdanubia (16%) and Balaton (15%) took second and third place. Concerning quarters of the year, the share of Budapest is the smallest in the summer period, while the weakest quarter in the Balaton region was the first part of the year. In the first eight months of 2005 occupancy rate of hotel rooms kept on increasing. In August 61.7% of the rooms were occupied compared to the 60% rate in the previous year and to the 57.6% in In the January August period commercial accommodation was used by 2.4 million foreign guests, who spent 7.6 million nights here. The former figure is by 5%, the latter one is by 1% higher than that of Within this, turnover of hotels increased by 1-5%, depending on type. Average room prices were gradually increasing until August by 10% on average. This figure seems favourable especially in the light of the more than 5% rise last year. The statistical office reported a slight 3.8% decline, as prices reduced from HUF to HUF. (See Appendix Table 9)

9 ICEG EC Sectoral Analyses Tourism sector 9 70% 65% Developments in occupancy of hotel rooms 60% 55% 50% 45% 40% 35% 5* 4* Average 3* 2* 1* 30% 25% REVPAR (revenue per available room) in the first eight months was higher by 13.3% on average. Following the outstanding increase in July (21.6%) in August there was a 1.1% decline. In all probability the reason was Formula 1, which fell on July this year unlike the previous years, when it contributed to the increase in tourist revenues and hotel room occupancy rates in mid-august. Weakening forint The forint/euro exchange rate which is an essential factor affecting the prosperity of the tourism industry was disadvantageous until August, it was continuously stronger than base values. In this respect there was a slight positive change during September and October, as the Hungarian currency reached the stable rate of above 250 HUF against the euro.

10 ICEG EC Sectoral Analyses Tourism sector Market structure Small enterprise dominance Danubius is the biggest market player As tourism is based on small and medium-sized enterprises, it is rather restricted to measure the concentration of the complex sector. By all means, it can be stated that within the revenues of commercial accommodation revenues from accommodations are dominant, though their share is continuously decreasing. While they accounted for 60% of the total revenue in 1999, it fell to 52% by At the same time revenues from catering were gradually and moderately growing, approaching 27% compared to the 25% five years before. (See Appendix Table 10) On the accommodation market it is easier to identify the three main players. The most significant player with its 15% share approximately 6500 hotel rooms is Danubius Hotels. One of the biggest chains is Hungest Hotels with approximately 4000 rooms and a 9.5% share, while the approximately 3900 rooms of Accor-Pannonia accounts for almost exactly 9% share in the domestic hotel market. Consequently the three biggest players determine 37% of the total market. In addition, there are some more significant smaller chains owning 4-6 hotels, but the rest of the market is made up of investors operating 1-3 units. Visitors Market is rather saturated, so entering of another significant player is only possible by aquisition. Certainly a few new hotels are expected to be opened, but rather in the higher categories and in the frequented resorts in the country. We believe that investments in the hotel industry will focus on the quality improvement of the current assets. Number of visitors entering Hungary rose to a small extent during the past three years. However, the composition of the visitor profile has slightly changed since September Not taking into account the neighbouring countries, traditionally most visitors came from Germany, 9% of the total number of visitors. However, considering the total figures without the data about the neighbouring countries it plays a more significant role, nearly 33%. This considerable exposure is one of the weaknesses of domestic tourism industry, as weak performance of German economy could result in discouraging potential German tourists willing to travel and it may have a negative effect on Hungarian tourism industry. During the past three years number and proportion of visitors from several large EU member states increased, while due to the terrorist attack number of overseas visitors sharply fell until 2003, but in 2004 exceeded the 2001 level. Comparing figures between 2001 and 2004 there was a significant change in the number of visitors from Switzerland (+87%), from Belgium and Bulgaria (+85%) and from Ireland (+81%). With respect to Croatian visitors, their number fell to almost half, 8 % more Russian and 14% more Finn tourists arrived. (See Appendix Table 11)

11 ICEG EC Sectoral Analyses Tourism sector Regulation and policy measures Forint exchange rate Value added tax As it has been mentioned, for enterprises living on tourism the exchange rate of the forint is a key issue, as foreigners mostly pay for services in euro. This is why tourism industry has interest in weak forint exchange rate. Besides the strong forint, unpredictability of the exchange rate causes further difficulties, for which policy makers could partly be responsible for. The lack of co-ordination between fiscal and monetary policy has already caused serious problems, at the end of 2003 last. While fiscal policy makers had interest in the weaker exchange rate which promoted recovery of the economy, the main aim of monetary policy makers was to beat inflation, which was supported by a stronger course. In the past few months forint has slightly weakened and opinions about the future vary. It is certain that excessive budget deficit and its further increase expected in 2006 (in the past few weeks there have been forecasts for approaching 10%) may discourage investors. Joining the euro zone in 2010 seems only a dream. Changes about value added tax will affect catering units only indirectly, as accommodation and catering services remained at the 15% rate. VAT on electricity will fall from 25% to 20% from 1 January 2006.

12 ICEG EC Sectoral Analyses Tourism sector Short- and long-term prospects Short-term global prospects According to the forecasts made by WTO experts, number of tourists this year may rise by 5.3%. This could be a rather conservative estimate as during the first seven months there was a 5.9 % increase in the number of travellers compared to the January-July period of If there is no further shock affecting tourism industry, total number of tourists could exceed 800 million, compared to 762 million last year. Breaking down the forecast into regions, the biggest increase is expected in Asia (10%), Africa is expected to grow by 7% and America by 6%. Compared to these figures, 4% increase is forecasted in Europe and only 3% in the Middle East. Forecasts say that the dynamism is likely to slow down, which is not surprising, taking the expected decrease of economic growth into consideration 1. It is also worth mentioning that the higher than 10 percent rise in 2004 created a very high base for this year when we still expect 5-6% increase compared to the average 4% between 1990 and What is expected in the long run? Favourable trend in Hungary as well In global terms WTO is still optimistic about long-term prospects. Their growth rates estimates have not changed since spring. According to their forecast the slowdown of the past 2-3 years will be compensated by the booming of the forthcoming period. As a reminder, according to the concrete forecast of the organisation number of travellers worldwide will have increased from the 760 million in 2004 to 1 billion by 2010 and to 1.56 billion by This would mean 4.7% yearly increase on average for the next five years and 4.6 % for the next 15 years. The same figures concerning Europe are 572 million travellers by 2010, 717 million by 2020 compared to the 415 million in 2004, which would 4.1% increase for the next 5 years and 3.5% for the next 15 years. (See Appendix Tables 3 and 4 for details.) The expected favourable developments described above and the ones concerning Hungary explained in the second chapter tend to the same direction. In our opinion in the next six months occupancy rates and room prices are expected to be higher than those of base months. Yet growth rate will probably decline, the dynamism of the past one and a 1 Considering its growth, the main engine of tourism is the current economic performance, as at the time of prospering economy available income of households is higher. Consequently higher discretional income allows higher sum to be spent on tourism in the given period which leads to better performance of tourism. During recession disposable income of people is less, on the other hand this unfavourable current state can lead to cautiousness and cutting back on potential travel spendings by integration into long term expectations. Thus there is positive correlation between economic growth and increase in tourism. Hisorical data collected by World Tourism Organization (WTO) show that in those periods when global economic growth reached more than 4% tourism was growing even faster, while in the period of less than 2% GDP growth tourism increased by even smaller amount. In the last 25 years of the 20th century average economic growth was 3.5%, within which tourism grew by 4.7%.

13 ICEG EC Sectoral Analyses Tourism sector 13 half years is not expected to continue. In the short term the weaker position of the forint may have a positive effect on the returns of the sector. Concerning the supply side we forecast further but considerably slower increase of hotel capacities. Booming of building new hotels in the past few years which resulted in huge foreign capital inflows and several new investments (Four Seasons, Corinthia Grand Hotel Royal, Le Meridien) in the domestic hotel industry will stop. The boom in hotel building is illustrated by the following chart which shows that the average number of rooms being under at the beginning of 2002 reached over 42600, that is increased by almost 7%. In our opinion the pace of growth will be stabilised at 1% on a yearly basis. Average number of rooms (four quarters rolling average) 45,000 40,000 35,000 30,000 4Q 97 2Q 98 4Q 98 2Q 99 4Q 99 2Q 00 4Q 00 2Q 01 4Q 01 2Q 02 4Q 02 2Q 03 4Q 03 2Q 04 4Q 04 2Q 05

14 ICEG EC Sectoral Analyses Tourism sector Sectoral SWOT analysis Strengths International tourism has completely recovered from the shock three years ago. Prosperity has not been affected by the active hurricane period this year Prosperity has been undiminished on the Hungarian market since autumn Figures of the first eight months of 2005 are favourable. Occupany rates are expected to go on improving According to WTO tourism growth in Central Eastern Europe will exceed that of western EU member states in the next years Gradually improving quality of services. New entrants make present players develop as well. EU accession promotes business tourism Opportunities EU accession might attract new visitors in terms of both leisure and business tourism New hotels, first of all Four Seasons might attract new visitors to Hungary By more powerful marketing activities country image could be improved Weaknesses Exposure to global economic growth High exposure to forint exchange rate fluctuation (a part of revenues received in euros, all costs occur in forints) Strong market competition, continuously increasing supply. This has been characteristic mainly of Budapest in the past few years, however there has been a rapid increase in capacity since in frequented spa resorts in the country. High exposure to German visitors Year by year decrease of the tourist season at Lake Balaton. Short season is combined with low quality services Threats Possible terror attacks might hinder growth of tourism German economy still has not recovered. Further recession would have an unfavourable effect on domestic tourism based on German travellers Drastic rise in budget deficit could lead to insecurity on the forint market. Foreign exchange rate fluctuation creates unpredictability in the economic activities of companies Potentially dynamic growth of supply might threaten long term productivity of the sector, prosperity of new investments

15 ICEG EC Sectoral Analyses Tourism sector 15 Appendix. Statistical data Table 1. Tourism revenues by regions (billions of US dollars) Europe % % Northern Europe 42 8% 49 8% Western Europe % % Central and Eastern Europe 23 4% 28 4% Southern Europe % % Asia and Pacific 96 18% % North-East Asia 47 9% 63 10% South-East Asia 24 5% 31 5% Oceania 18 3% 23 4% South Asia 7 1% 8 1% America % % North America 84 16% 98 16% Caribbean 18 3% 19 3% Central Ameriak 3 1% 4 1% South America 9 2% 11 2% Africa 16 3% 19 3% North Africa 5 1% 6 1% Other parts of Africa 11 2% 13 2% Near East 17 3% 21 3% TOTAL Table 2. TOP10 destinations (2004) Number of tourists (million) Tourism revenues (billions of US dollars) 1 France USA Spain Spain USA France China Italy Italy Germany UK UK Hong Kong China Mexico Turkey Germany Austria Austria Australia 13.0 Source: WTO

16 ICEG EC Sectoral Analyses Tourism sector 16 Table 3. Estimated number of tourists by regions (million) E 2020 E Africa America Asia and Pacific Europe Near East TOTAL Source: WTO Table 4. Estimated market share of the regions E 2020 E Africa 3.5% 4.7% 4.9% America 19.5% 18.9% 18.1% Asia and Pacific 15.0% 20.5% 26.6% Europe 59.5% 52.4% 45.9% Near East 2.5% 3.6% 4.4% TOTAL 100% 100% 100% Source: WTO Table 5. Foreign direct investments (millions of forints) Accomodation and catering services % in total 1.1% 1.1% 1.3% 1.2% 1.1% 0.8% Source: MNB Table 6. Tourism revenues and expenditures (millions of euros) H1 Tourism revenues Tourism expenditures Balance of tourism C/A balance Source: MNB, ICEG EC

17 ICEG EC Sectoral Analyses Tourism sector 17 Table 7. Summary table Nominal GDP (bn HUF) Travel revenues (m EUR) Travel expenditures Net travel C/A balance Average number of rooms Average occupancy 47.5% 45.5% 46.7% 46.6% 45.1% 43.7% 46.6% Average price of a room (HUF) REVPAR Number of foreign visitors (1000) Number of guest in accomodations (1000) Number of tourism nights (1000) Average number of tourism nights per visitor HUF/EUR Source: MNB, KSH Table 8. Share of hotels and catering in GDP in some European countries (Current prices, %) Austria Belgium Cyprus n.a. n.a. n.a n.a. n.a. Czech Republic UK n.a. n.a. Estonia n.a France n.a. Greece Poland Latvia Lithuania Hungary Malta n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a Germany Italy Portugalia n.a n.a. Romania n.a. Spain n.a. n.a. n.a Slovakia n.a Slovenia n.a. Turkey n.a EU-15 n.a EU-25 n.a. n.a. n.a Source: Eurostat

18 Table 9. Elements of tourism revenues (m HUF) Accomodation fee Catering Income of public accomodations Tourism revenues Source: MNB, KSH Table 10. Visitors by countries (in 1000 tourists) Austria % 14.9% 15.5% 14.3% Belgium % 0.2% 0.3% 0.3% Bulgaria % 2.4% 2.5% 2.7% Czech Republic % 1.6% 2.1% 2.3% Denmark % 0.2% 0.2% 0.3% UK % 0.7% 0.7% 0.9% Finnland % 0.2% 0.2% 0.2% France % 0.7% 0.8% 0.9% Greece % 0.2% 0.2% 0.3% Netherlands % 0.8% 0.8% 0.8% Croatia % 6.7% 4.9% 3.5% Ireland % 0.1% 0.1% 0.1% Poland % 2.9% 2.4% 2.7% Germany % 8.6% 9.2% 8.6% Italy % 1.3% 1.5% 1.7% Russia % 0.3% 0.3% 0.3% Romania % 17.8% 19.0% 20.3% Spain % 0.3% 0.3% 0.3% Switzerland % 0.4% 0.5% 0.6% Sweden % 0.4% 0.4% 0.4% Serbia and Montenegro % 12.3% 10.7% 9.9% Slovakia % 12.8% 14.1% 15.1% Slovenia % 1.9% 1.9% 1.9% Ukraine % 8.3% 7.8% 7.0% USA % 1.1% 1.0% 1.1% Canada % 0.2% 0.2% 0.2% Israel % 0.3% 0.3% 0.4% Japan % 0.3% 0.3% 0.3% TOTAL % 100.0% 100.0% 100.0% European Union % 28.6% 30.1% 51.7% OECD countries % 32.9% 34.7% 34.5% Source: KSH

19 Table 11. Evolution of room prices and occupancy 2003 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Av. Price per room Av. occup. 25.7% 29.9% 37.2% 44.3% 49.2% 48.3% 51.7% 57.6% 54.5% 50.7% 39.7% 31.3% REVPAR HUF/EUR I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Av. Price per room Av. occup. 28.6% 32.9% 42.8% 47.6% 51.5% 50.0% 53.4% 60.0% 54.9% 51.9% 43.4% 34.3% REVPAR HUF/EUR I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Av. Price per room Av. occup. 29.5% 35.0% 43.6% 47.4% 52.5% 51.2% 56.6% 61.7% REVPAR HUF/EUR /2003 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Av. Price per room 0.7% 3.3% 6.6% 12.2% 12.8% 9.7% 2.2% -0.3% -2.7% 8.8% 5.3% 2.6% Av. occup. 11.3% 10.0% 15.1% 7.4% 4.7% 3.5% 3.3% 4.2% 0.7% 2.4% 9.3% 9.6% REVPAR 12.1% 13.6% 22.7% 20.5% 18.1% 13.6% 5.6% 3.9% -2.0% 11.4% 15.1% 12.4% HUF/EUR 10.2% 7.3% 3.1% 1.9% 2.8% -3.0% -5.4% -4.1% -3.1% -3.4% -5.4% -7.2% 2005/2004 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Av. Price per room 10.0% 9.4% 7.7% 11.7% 11.1% 5.7% 14.3% -3.8% Av. occup. 3.1% 6.4% 1.9% -0.4% 1.9% 2.4% 6.0% 2.8% REVPAR 13.4% 16.4% 9.7% 11.2% 13.3% 8.2% 21.1% -1.1% HUF/EUR -6.8% -7.3% -3.3% -0.9% -0.3% -1.6% -1.4% -1.8% Source: MNB, KSH