Canceling the Sziget festival would cause serious economic losses – GDP could decrease by more than 30 billion forints

The research shows that Sziget contributes tens of billions of forints to the Hungarian economy annually, mainly through the spending of foreign visitors. For example, in 2024, around 160 thousand foreign guests came to the festival, who brought in 7.9 billion forints in revenue for Budapest accommodation – this represented a 37 percent increase in turnover compared to the previous week. Foreigners account for half of ticket buyers and buy 80 percent of the more expensive tickets, so the cancellation of the festival would also directly reduce Hungarian export revenues.

According to the GKI, in addition to the private sector, the state would also lose significant tax revenue: less VAT, tourism tax, personal income tax and corporate tax would be collected. In addition to the decline in GDP, thousands of jobs in the event sector and related services – such as catering, the hotel industry, transport – would be at risk, especially among small and medium-sized enterprises.

The study highlights that Sziget represents not only economic but also image value, and its cancellation would also weaken Budapest’s international tourist position. According to the GKI analysis, securing the festival’s future is therefore not only a cultural but also an economic interest.

The fate of the festival is currently uncertain, as the American owner would exit the Hungarian market. The organizers are confident that with a new, Hungarian ownership background and the return of founder Károly Gerendai, Sziget will be saved.