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One of Central Europe’s landlocked nations is Hungary. In all the economic sectors that make up the nation, growth and development have a lengthy history. Along with Serbia, Romania, Croatia, Austria, Ukraine, Slovakia, and Slovenia, Hungary shares borders with a number of other nations. It is one of the oldest nations in Europe, despite its modest size. A fascinating and unique ethnic group is the Hungarians. According to Illés and Michalkó (2008, p. 110), they exhibit a broad sense of culture that has grown to be both a source of pride and a sign of their individuality. They are one of the most vibrant people to interact with, and this feature has seen the number of tourists who come to the country increase significantly every year. The revolution in Hungary’s economy has been very instrumental in enhancing development. It has transited from an economy that is centrally planned to a market economy in which the free price system determines the prices of goods and services.
Hungary’s system of government is a parliamentary democracy with the President as the chief head of state. The prime minister is the head of government who is assisted by many other leaders. The country has been enjoying a period of peace since the end of the world wars. Dávid and Tóth (2011, p418) explains that its peaceful environment has made it a renowned destination for tourists from every part of the world. It is also endowed with many other tourist attraction sites located in its different towns and cities. Hungary is also one of the members of the European Union. Such a membership portrays the country’s ability to embrace global integration and relationships with other economies around the world.
Capital, Important Gateways, and Key Destinations
Having been endowed with sufficient natural and human resources, Hungary prides itself of enough capital to support its industrial and commercial activities. Chou (2013, p230) Reports that the stability of its economy majorly depends on the availability of capital. Hungary is an industrious economy. It is home to major industrial cities in Europe such as Budapest and Debrecen. The industrial sector involves different departments such as the service industry, processing of agricultural products as well the manufacturing sector. With this level of capital formation, the country solves the problems of waste, underutilization of resources and unemployment, which are quite prevalent in many growing economies.
Hungary has one of the most important gateways in central Europe. Its capital, Budapest, which is commonly referred to as the “Paris of the East” is quite an important city in Europe. It is an important cultural center, educational center, and commercial center. The country is well connected to its neighboring countries using modern transportation facilities such as roads, railway lines and air transport. Tömöri (2010, p.202) explains that an economy can only be described as growing if there is ease of movement from one location to another. This kind of movement facilitates the smooth circulation of people, goods and services from one sector of the economy to another. The result is the achievement of a balanced regional development which in turn increases the country’s national economy.
Key destinations
Hungary is a country where one can never exhaust places to visit. It is home to the main destinations in Central Europe. In support of this description, Piazolo and Zanca (2011, p.150) report that Hungary is the heart of tourism in central Europe. The country is divided into cities and towns with modern facilities that are just convenient for receiving guests. Budapest leads in the number of people that visit Central Europe. While other come for business summits, others just come to enjoy the Hungarian environment. Other significant destinations that are found in Hungary include:
Miskolc
Debrecen
Eger and
Szolnok
Accessibility to Reach and Within the Destinations
With the government’s determination to improve the transport sector, moving from one place to another in Hungary is quite easy. The whole country is connected with a network of modern roads and railway lines making every city in Hungary accessible. As Puczkó and Rátz (2011, p.460) explain, the fundamental pillars in the tourism sector are the accessibility of different locations and the ease of movement. Tourists want to get to their desired destinations within the shortest time possible, and in comfort that they would want to have. Transport in Hungary is divided into three modes: road, railway, and air travel. Budapest is an important host of the Hungarian Railway system. The country has numerous railway stations situated in different locations. Hungary has five international airports that help both the visitors and locals to travel to other cities in the world.
Tourism demand
One of the most important subdivisions of the Hungarian economy is its tourism sector. The country receives thousands of tourists from all over the world throughout the year. It also registers a significant tourism demand by its domestic tourists. Kulcsar (2009, p.125) reports that the Hungarian government has become more diligent in formulating and implementing policies that are aimed at improving the tourism sector after an analysis of the role played by the industry towards the betterment of the economy. The level of tourism demand in Hungary can be described to be quite high especially when compared to that of other countries in central Europe. Some factors contribute to increasing Hungary’s tourism demand. They include
Political stability and peaceful environment. Political instability scares away tourists as nobody wants to visit a country where their security is not guaranteed. Hungary boasts of a tourist friendly environment and one that is peaceful.
Tourist attraction sites. There are several tourist attraction sites in Hungary to match the different tastes of many visitors.
The Hungarian culture. People come from various places to see and learn about the culture of Hungary residents. There are cultural events held in different parts which attract tourists to this country.
A favorable climate. Hungary has a suitable climate that favors different people.
Domestic and Regional Tourism
Hungary’s tourism sector is divided into two sub-sections: the domestic and the regional tourism. Csete et.al (2013, p1047) Argue that is unfortunate that the governments put a lot of emphasis on the international tourism and neglect their local tourism. Domestic tourism involves the movement of the Hungarian residents from one location to another within the country. Regional tourism, on the other hand, includes the movement of tourists from region to another. Some of the tourists come from other nations. Hungary’s both local and regional tourism has shown an increasing trend. Statistics show that the number of nights that international tourists spent in Hungary in the year 2016 rose by 21% percent while that of domestic tourists grew by 8.6 %. The statistics office also reported that the number of registered foreign arrivals grew by 18%. It is then evident that the tourist sector is expanding with time.
Outbound Tourism
Richards and Munsters (2010) define outbound tourism as the tourism of local visitors outside the economic boundaries of the country of reference. Like any other country, Hungary’s residents also visit other places outside Hungary. The table below shows the trend of outbound tourism in Hungary between the years 2010 to 2014.
Outbound tourism
2010
2011
2012
2013
2014
Total international departures
7 616
8 043
7 737
8 191
8 933
Overnight visitors (tourists)
4 605
4 644
4 267
4 339
4 927
Same-day visitors (excursionists)
3 012
3 399
3 470
3 852
4 006
There has been a relatively slight increase in the numbers of international departures, overnight visitors, and same-day visitors.
Segments of the Traffic
Familiarizing with the traffic rules and operations in any city is necessary to both the motorists and the pedestrians. Hungary’s transport authority has well-stipulated traffic guidelines that guide the usage of transport facilities. Konyves and Suta (2009) explain that the need to embrace traffic guidelines should not be motivated by the fear of finding yourself in trouble with the traffic authority but rather by the desire to achieve safety for all people. The government has been making suitable policies to reduce traffic in large cities like Budapest. There are specific measures that the traffic authorities have put in place to ensure safety. Such measures include:
They have made sure that most of the signs are in picture form to make it easier for visitors using the roads.
The enforcement of strict adherence to the traffic lights.
There is a zero tolerance on the usage of alcohol when using the roads.
Proper registration and accreditation of the drivers by the issuance of driving licenses.
The authority highly discourages the use of mobile phones when driving. Visitors are also encouraged to the GPS System when they are driving around the country.
Attractions
Hungary is full of tourist attraction sites. They vary from physical features, cultural features, and beautiful sceneries. Towns and cities of all sized have been preserving their classic historical attractions. Tömöri (2010, p.203) reports that the cultural diversity in Hungary not only fosters interactions but also gives the nation a beautiful sense of culture. The Great Synagogue, which is Europe’s largest synagogue is found in Hungary. There are many other architectural designs such as Historicism and Art Nouveau. The Danube and Tisza Rivers are some of the physical features found in Hungary. There are mountains like Transdanubian Mountains, plains, and hills. Wildlife is an important tourist attraction in Hungary. The cultural diversity brings out a beautiful musical experience. Tourists visiting Hungary get a lot of the entertainment from the local music and dance groups. There are also lots of recreational facilities in Hungary that help to keep the visitors entertained together with their friends and family.
Climate and weather
Tourists prefer visiting places with favorable climatic and weather conditions. Places with adverse conditions may end up affecting the health of the tourists. While comparing the climatic conditions of different places, Chou (2013, p.231) reports that such places register very small numbers of tourists. A good climate and weather serve a major tourist attraction. Hungary is privileged to have one of the best continental climates. For this reason, many tourists want to spend their holidays in its cities. The hot summers are just perfect as during this time there is a relatively low humidity. The average high temperatures range from 24 °C to 28 °C. There are also frequent rain showers and snowy winters, perfect for playing snow games.
Trends and Forecast for the Coming Decades
Economic and social conditions are subject to change depending on the environmental changes. Hungary has undergone a series of changes in all its sectors. These changes will rarely get people off-guard. The economy is being analyzed every day to check its sustainability in the future. Dávid and Tóth, (2011, p 420) argue that this analysis is a critical evaluation tool of the growth of the economy and that they serve a great role in enhancing accountability and transparency. There is a possibility of forecasting what might happen in the future after a critical evaluation of a particular trend of occurrences. Several things have been forecasted about Hungary’s economic future. They include:
There is a forecast that the diversity in demographics and systems might put the members of the European Union under greater strain. The institutions might survive, but their efficiency might be significantly reduced. Being a member, Hungary might be equally affected.
Hungary’s GDP is expected to rise in the coming years. The forecasts are as below.
Indicators 2015 2016 2017 2018
GDP growth rate (%) 3,1 1,9 3,3 3,5
Inflation level (%) 0,1 0,4 2,2 3,1
Unemployment rate (%) 6,8 5,2 4,8 4,5
Public balance budget (% of GDP) -1,6 -1,8 -2,4 -2,5
Unemployment is expected to continue declining and employment opportunities to continue increasing.
The rate of inflation, unfortunately is expected to rise.
Hungary’s population is expected to decrease to about 19.4 by the year 2050.
Challenges within the aviation industry of the Country
Despite making quite a good progress, the aviation industry of the country in Hungary still faces quite some challenges. These challenges have been hindering development and advancement of the industry. They include:
The carbon challenge. The aviation sector is faced with a challenge of controlling the carbon emissions which end up polluting the environment.
Lack of proper marketing channels by the airline’s management.
Increased protection of the national airlines by the government. The government ought to improve the private airlines as well
Reduced innovation in the industry. According to Tömöri (2010, p.202) it is impossible to advance to new and greater levels in the absence of innovation.
It is however expected that proper measure will be implemented to curb these challenges so that the aviation industry might run smoothly. The industry can advocate for the use of better fuel and engines to solve the carbon problem. The government should encourage innovative plans and seek to support the private sector as well.
References
Chou, M.C. (2013). Does Tourism Development Promote Economic Growth in Transition Countries? A Panel Data Analysis. Economic Modelling, 33, pp.226-232.
Csete, M., Pálvölgyi, T. and Szendrő, G. (2013). Assessment of Climate Change Vulnerability of Tourism in Hungary. Regional Environmental Change, 13(5), pp.1043-1057.
Dávid, L. and Tóth, G. (2011). Competitiveness of Tourism Regions in Hungary. Anatolia, 22(3), pp.418-423.
Illés, S. and Michalkó, G. (2008). Relationships Between International Tourism and Migration in Hungary: Tourism Flows and Foreign Property Ownership. Tourism Geographies, 10(1), pp.98-118.
Konyves, E. and Suta, E. (2009). The Importance of Equestrian Tourism Enterprises in Tourism Destination Management in Hungary. ABSTRACT: Applied Studies in Agribusiness and Commerce, 3.
Kulcsar, N. (2009). Rural Tourism in Hungary: The Key of Competitiveness. In Proceedings of FIKUSZ’09 Symposium for Young Researchers, Budapest Tech Keleti Károly Faculty of Economics, pp. 121-127.
Piazolo, M. and Zanca, N.A. (2011). Medical Tourism: A Case Study for the USA and India, Germany and Hungary. Acta Polytechnica Hungarica, 8(1), pp.137-160.
Puczkó, L. and Rátz, T. (2011). Social Tourism in Hungary: From Trade Unions to Cinema Tickets. Current Issues in Tourism, 14(5), pp.459-473.
Richards, G. and Munsters, W. eds. (2010). Cultural tourism research methods. Cabi.
Tömöri, M. (2010). Investigating Shopping Tourism Along the Borders of Hungary: A Theoretical Perspective. GeoJournal of Tourism and Geosites, 6(2), pp.202-210.
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