MTÜ: government proposals further strengthen the competitiveness of domestic hospitality

By: Trademagazin Date: 2024. 11. 20. 11:44

The government’s proposals further strengthen the competitiveness of domestic hospitality, according to the Hungarian Tourism Agency (MTÜ).

In their statement sent to MTI, they recalled that the Ministry of National Economy recently submitted proposals determining the maximum amount of the service charge, ensuring the tax exemption of tips, and modifying its payment.

Based on the draft of the service charge, catering establishments can set a maximum of 15 percent for household consumption and 20 percent for company events. Its application is voluntary, and the operators of catering establishments can decide on it. For tips, the proposal stipulates its tax and contribution exemption, and also modifies the conditions for payment in order for employees to receive it without deductions.

The MTÜ welcomes the drafts also supported by professional organizations, as thanks to them not only can those working in the hospitality industry receive more income, but the sector’s ability to retain workers can also increase.

According to their statement, tourism is one of the most important drivers of the new economic recovery. The sector’s contribution to the national economy is more than 12 percent, and more than 10 percent of the central budget’s revenues are generated by tourism-related consumption and employment.

The social importance of the industry is clearly demonstrated by the fact that nearly one hundred thousand small and medium-sized enterprises operate in it, thus tourism provides a livelihood for about 400 thousand families in our country.

“The higher service charge for corporate events can significantly strengthen the competitiveness of the domestic hospitality industry and, more broadly, the entire tourism sector. International business events, conferences and congresses hosting a large number of delegates can significantly contribute to the strengthening of inbound tourism. The new maximum rate will enable domestic service providers to provide competitive wages to their employees who perform high-quality professional work and who are employed at these events that meet international demands. This way, not only the amount earned by employees can increase, but the sector’s ability to retain workers can also increase significantly,”

the statement quotes László Könnyid, CEO of MTÜ.