According to the latest calculations of the Hungarian National Bank, the balance of the tourist industry was 2.2 billion USD in 1999, 196 million less than the year before. Revenues fell 3.4 percent while expenses went up by 6.8 percent. According to the new calculations the tourism surplus has been continuously diminishing since 1997. Taking into account the intensive marketing campaigns launched, the industry is likely to produce similar results this year than in 1999. As a result of the Kosovo crisis the number of foreign visitors fell another 14.3 percent in 1999. In spite of that, the number of registered guests has not changed much since 1996 (5.3-5.4 million people) with a slight drop in the number of guest nights.
Domestic tourism was on the rise last year – altogether it went up by an annual 6 percent. Hungarian tourists spent 30 percent more, 13 billion HUF at home. The system of holiday cheques proved to be very popular and had an important stake in the domestic tourism boom. There is now evidence that the general budget receives twice the amount it spends from on this form of state subsidy.
Commercial lodgers generated 71.9 billion HUF in revenue, an 11.1 percent growth over 1999. Of this 57 percent came from Budapest, 11 percent from the Lake Balaton area.
Investors have begun to show a preference for high-quality tourist and cultural real estates. There are currently 14 four- and five-star hotels being built in Budapest. By the end of the year there will be an additional 850 four-star and more than 200 five-star rooms available. With that the number of four-star rooms will rise by 20 percent, the number of five-star rooms by 10 percent.
