Tourism: slightly deteriorating economy, but still the best among economic sectors

In accommodation services, a 13-point drop was recorded, with the index falling to –9. The other tourism sector stands at –1 point, while food service strengthened to –5 points.

Although the index declined, tourism still outperforms the overall economy: the TKI is 5 points higher than the EU service sector business index (–10 points), and significantly better than industry (–12), construction (–27), or retail (–22).

20% of tourism companies plan to raise prices in the next three months, 72% expect prices to remain unchanged, while 8% foresee reductions. The strongest intentions to raise prices are found in food service (24%) and the other tourism sector (23%), while among accommodation providers the figure is 14%. 10% of companies have already raised prices recently and expect further increases in the near future.

A positive sign is that 44% of businesses plan investments within a year. This is well above the ratio a month ago (30%) and a year ago (33%). Based on the three-month moving average, the indicator is also higher than at the same time last year (36% vs. 34%).

The Tourism Business Index is compiled jointly by the National Association of Tourism and Hospitality Employers (VIMOSZ), the Hungarian Tourism Association Foundation, and GKI Economic Research Co. on a monthly basis. The aim of the index is to provide forecasts on short-term trends in tourism for both the market and the public.