Portfolio now reports that tens of thousands of apartments could be affected by the proposed changes, which will challenge goals set for tourism and the economy at large. In recent weeks, a host of tourism experts have also discussed a potential overhaul of Airbnb operations and possible restrictions on such properties in Hungary. If implemented, it will have a huge impact on the tourism industry because it is said to tap up to 14,000-16,000 facilities in Budapest and 30,000-35,000 nationwide.
There are claims that this new law is going to mandate private accommodation providers to rent out their places for just 150-180 days per year. This pattern of regulation is common with several European countries because of the argument that if there are no private accommodations, then customers will shift to the booking of hotels. But the two groups of tourists, the private accommodation users and hotel tourists greatly differ from each other and do not cross over much. Therefore, restricting private accommodations will drive away foreign tourists who can visit other than Budapest in case the available hotel rooms are limited in number.
Airbnb restrictions would work against the current tourism policy goals
Balázs Schumicky, President of the Association of Hungarian Apartment Owners, also realized the potential limit on rental days. He feels that such restriction would make private accommodation in Budapest unviable. He said that existing accommodation could not be effectively restricted as they work towards economic growth and attempts to raise the quality and quantity of tourism. The proponents of the restriction argue that private accommodations have an upper hand, but this is wrong.
Schumicky clarified that many believe that by imposing restrictions on private accommodations, hoteliers would gain more customers. But the facts culled from international surveys say otherwise — 3/4 of the guests that end up in a private accommodation would NOT go to hotels; they would choose other locations. In this case, American tourists end up in hotels while the French and German tend to drift towards the listed Airbnb. As the housing crisis has caused many to be in favor of the restriction of private housing, they said that an entire ban on private housing in smaller towns and villages would only bring more people into Budapest for work and apply even more pressure on the capital’s accommodation. Furthermore, with the 30,000-35,000 private lodgings, the ambitious 2030 strategy of the Hungarian Tourism Agency cannot be reached. Tourism accounts for 11-14% of GDP in Hungary; restrictions on private accommodations would also hurt business for restaurants and other forms of hospitality services.
