A new era in Budapest’s tourism management: the capital’s TDM model is transforming

An economic engine with shared responsibility

Mayor Gergely Karácsony pointed out that while the operation of tourism and its urban impacts are mostly a burden on the capital, the revenue from the tourism tax falls on the districts. The current model is unsustainable — he said —, so it became necessary to create a new management structure, which is based on coordinated cooperation between the city, the districts, the state and the business sector.

The mayor emphasized:
“The future of tourism is not a party political issue, but a pledge of the city’s liveability and competitiveness.”

The performance of the capital is a national stake

Nagy Elek, the Hungarian and Budapest Chambers of Commerce and the President of the Chamber of Commerce and Industry pointed out that Budapest’s tourism:

• represents an economic output of more than 1,000 billion forints annually,

• employs 85,000 people,

• and produces 37% of Hungary’s GDP.

According to her, the 10-year agreement of the Sziget Festival and the upcoming Champions League Final are events that strengthen the capital’s international visibility — therefore the tourism strategy is of national interest.

SMEs will have a greater say

According to Angéla Szatmáry-Jahl, president of the BKIK trade section, Budapest tourism SMEs provide the backbone. The new TDM model aims to integrate the entrepreneurial voice into business decisions in a real, measurable way:

• data-driven planning and efficiency increase,

• the Budapest brand becomes unified,

• collaboration makes operations more predictable to.

Visitor economy focus: balance between residents, entrepreneurs and guests

According to tourism consultant Gergely Baráth, Budapest aims to be successful both as a livable city and a sustainable tourist destination. The new approach:

“It does not require hierarchies, but networks.”

The institutional pillar of the renewed model is the
Budapest Visitor Economy Council, which will work with operational working groups, among others:

• governance and destination management,

• sustainability and climate,

• branding and visitor experience,

• mobility and city management,

• workforce and competence development areas.