The flourishing of Budapest’s airbnb era may be coming to an end

By: Trademagazin Date: 2024. 07. 29. 11:19

Tensions are once again being experienced in domestic tourism, as a dispute has arisen between larger accommodation providers and smaller private accommodation establishments. According to the information received by the Index, the larger players are calling for additional regulations that would also affect smaller accommodations. The smaller actors do not understand why these new rules are necessary, since their common goal is the successful operation of tourism.

Main questions and points of discussion

Tightening of regulations: The major players, led by the Hungarian Hotel Association, are pushing for further regulation of private and other accommodations, which would be unique in Europe.

Limiting opening days: Proposals have been made to maximize opening days, which may be contrary to the government’s tourism strategy.

Airbnb’s impact: It has been suggested that airbnbs may increase rents and disrupt residential communities, although international surveys show that these guests would not necessarily switch to hotel services if airbnbs were to be suppressed.

Representations and government promises

The interest groups received a promise from Zoltán Guller, the president of the Hungarian Tourism Agency, and Márton Nagy, Minister of National Economy, that they would be asked for their opinion before any proposed amendment affecting them.

The background of the debate

At the March meeting of the Tourist Advisory Board, some interest groups urged stricter regulation of private and other accommodations. In a previous article, Index indicated that the larger players are trying to make the smaller ones impossible, which further exacerbates the tensions in the sector.

Overall, the current debate in Hungarian tourism mainly revolves around the tightening of regulations, which would especially have a great impact on smaller accommodation providers. Negotiations between the government and interest groups will be key in determining future directions.