Budapest – Hotels in Hungary are up 20 per cent this year, and the average rate is now more than three times the national average.
The average hotel room price in Hungary is now €2,200, up 10 per cent from last year, the highest in Europe, according to a survey conducted by Hotels & Resorts International.
Hungary’s rate has increased by over 100 per cent in just two years, from €150 a night in 2014 to €400 a night this year.
Hotels in the country have been on a buying spree, with an average room price of €1,700 in the last five months.
Hotels are a big part of the local economy in Hungary.
A study by consultancy firm IHS shows that the country’s hotels generate €5.2 billion ($6.5 billion) in gross domestic product, accounting for 6.5 per cent of gross domestic products in Hungary, up from 5 per cent two years ago.
A majority of the country also uses hotels as a form of transport, with around half a million tourists travelling through the country annually.
It has been widely reported that hotel occupancy has decreased in Hungary in recent years, partly due to increased competition.
Some economists believe that the influx of cheap Chinese tourists to Hungary could help to boost hotel occupancy.
In 2017, there were 7,500 more visitors to Hungary than in 2016, according a report by consultancy Hotels International.
The report added that, compared to previous years, Hungary had an overall lower number of foreign tourists in the previous year.
But Hungary’s economic growth has also slowed down in recent months, with the country registering its worst annual contraction in six years in the third quarter.