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Rural Tourism Development in Hungary

Rural Tourism Development in Hungary. Dr Zsuzsanna Bacsi Assoc prof, Univ of Pannonia, Georgikon Faculty, Keszthely – Hungary h5519bac@ella.hu Ferenc Zemankovics Head of Local Rural Development Office of Keszthely Microregion , Hungary keszthelyi@vkszi.hu. Nitra, 19 to 21 November 2009.

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Rural Tourism Development in Hungary

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  1. Rural Tourism Development in Hungary Dr Zsuzsanna Bacsi Assoc prof, Univ of Pannonia, Georgikon Faculty, Keszthely – Hungary h5519bac@ella.hu Ferenc Zemankovics Head of Local Rural Development Office of Keszthely Microregion, Hungary keszthelyi@vkszi.hu Nitra, 19 to 21 November 2009

  2. NUTS categories by population • NUTS 1:Supra-region 3 mill to 7 mill • Nuts 2:region 800 thou to 1500 thou • Nuts3: county 300 to 800 thou • NUTS4: district, microregion,.... • NUTS 5: town, village

  3. Overview • History, importance, relation to rural development • Provisions for development- EU and national resources • Organisational structure • Competencies – human and physical • Legislation, taxing

  4. 1. History, importance, relation to rural development History: The origin of rural tourism in Hungary • end of 19th century: • spas and Lake Balaton • Re-discovery of folk art • Early 20th century (1930-ies): • Recreational tourism to villages: 30-35 % of all tourism!, more than 250 villages involved • Guests: organised trips for children, urban families • Network of village accommodation and hospitality providers • Booklets for rural accommodation providers, and for tourists • After 1945: rural tourism disappears • Reneval: from 1990 • Initial stage: accommodation provided, no programmes offered, first national organisations, NGOs at local and microregional level, catalogue of accommodations • 1994: National Assocation of Rural Tourism (FTOSZ, 34 organisations invoved) – marketing , quality assurance, member of EUROGITES • 2001: FTOSZ reorganised: Hungarian Federation of Rural and Agri-Tourism (FATOSZ) – members. County organisations (comprising local RT entrepreneurs, private persons...)

  5. Relation to rural development • „Rural tourism”:tourist activities in which the visitor can become acquainted with • village life, • customs and traditions, • local food and drink, • natural surroundings … • Role of rural tourism in rural development • Ecological sustainability: location for agriculture, natural, and built environment • Economic and social sustainability – incomes, cultural heritage, traditions • Rural tourism • Additional income for rural people (diversification) • Utilises rural heritage (cultural, physical) • Provides financial resources for preserving the rural heritage

  6. Importance Negative features: not more than additional income, foreign investors, foreign cultural values, environmental degradation, pollution....

  7. Rural tourism in Hungary, 1998-2008 Both among Hungarians and foreigners, there is a relatively high proportion of faithful visitors, suggesting that the product itself is perceived as a good quality product.

  8. 32,5% 9,4 % 5,1% 17,4% 13,2% 5,2% 17,3% Distribution of rural accommodations (beds) by NUTS 2 regions in Hungary, July 2008 Share of regions by guest nights

  9. Fallacy 8(Zemankovics-Bacsi:Ten Fallacies of Rural Development, Proceedings, 16th European Seminar of Extension Education, 2003, p.236-2409) „ Rural tourism is the future of rural communities” It can be, but not everywhere and every time Possible dangers: Overemphasising • the role of rural tourism as source of income • the role of foreign visitors

  10. 2. Development of rural tourism - Funding • SAPARD 1999-2004 • National Specific Target-Oriented support schemes • 2004-2006:National Development Plan I. • Agricultural and Rural Development Operative Programme • 2007-2013:New Hungary Rural Development Programme • Axis 3: Diversification and quality of life • Axis 4: LEADER

  11. 2004-2006: National Development Plan Agricultural and Rural Development Operative Programme • total 107 mrd HUF = 420 million EUR for 2004 - 2006 Objectives: • improving the competitiveness of agricultural production and food processing • assisting the realignment of rural areas Priorities: • Priority 1 - Establishment of competitive production in agriculture • Priority 2 - Modernisation of food processing • Priority 3 - Development of rural areas (26 %, 109 million EUR ) – infrastructure for agric production, rural heritage, rural incomes.. • Diversification of agricultural production (local foods, non-food goods,processing) • Marketing of quality food products • Development of tourism (rural tourism) • Accommodation • New services, eg.food, entertainments (fishing, wine trails, sports) • Local handcrafts • Priority Technical Assistance

  12. NHRDP, 2007-2013 LEADER Axis (Axis 4) Competitive agricultural and forestry production (Axis 1) Protection of the environment and land use (Axis 2) Diversification and quality of life in rural Hungary (Axis 3) Common rules - programming, financing, monitoring European Agricultural and Rural Development Fund New Hungary Rural Development Programme, 2007-2013 Measure: Encouragement of tourism activities Operations covered: • Developing small-scale quality accommodations • Other agri-tourism services • Display of agricultural folk art and handcrafting • Wine tourism services • Fishing tourism services • Equestrian tourism services • Collective tourist product marketing • Small-scale infrastructure development Type of support: Non-refundable investment aid.

  13. Specific support operations for Rural Tourism in NHRDP 2007-2013 • Axis III: 4 operations: • Rural tourism • Village renovation • Micro-enterprises • Rural heritage • Axis IV: Leader Action Groups set up their own piorities and activities supported – rural tourism is among the preferred Total cost: NHRDP: 5 billion EUR • For Axis IV (Leader): 300 m EUR (5,5 %) • For Axis III: 700 m EUR (17%) • tourism development: • Public expenditure: 127,9 million EUR of which EU contribution: 89,6 million EUR

  14. Central HU Central Transd West Transd South Transd North HU North G Plain South G Plain Village reconstruction Rural tourism Rural heritage Micro-enterprises Number and type of LEADER applications no

  15. NHRDP, LEADER data

  16. 3. Organisational structure of tourism in Hungary, 2009 • Parliament • Ministry of Local Governments, Tourism Unit • Parliamentary Committee on Sports andTourism • National Tourism Committee (formerly Hungarian Tourist Authority): administrative body that reports to Minister of Local Governments, represents the professional bodies major trade organizations of the sector and regional tourism boards, it participates in preparing the decisions • Regional Tourism Boards: coordinates the actions and ideas of tourism actors in the regions, • Hungarian Tourism Ltd.: national marketing organization of tourism, promoting Hungary's tourism attractions and services • Regional Tourism Marketing Departments • Network of Tourinform offices: maintained by local governments and the National Tourism Board

  17. Rural tourism marketing organisations • Hungarian Federation of Rural and Agri-Tourism (Hungarian abbreviation: FATOSZ) • a national NGO, with 19 member organizations within the country representing the 19 counties of Hungary, and having rural accommodation providers as their members • www.agroturizmus.eu: information service • Centre for Rural Tourism (Falusi Turizmus Centrum) • a private company, selling beds in certified village houses throughout the country – online booking service. • Agroservice AgroTourism • Private company, integrates local village and agro-tourism providers, mainly in North-East Hungary, promotes agrotourism accommodations through their website • IKUVEH Consortium: Consortium for Rural tourism Interest Representation - Agricultural Study Tours and Trainings, information booklets and electronic promotional material • ...

  18. 4. Competencies Physical requirements: The FATOSZ has introduced the the quality assurance and quality grading system of rural accommodations in Hungary. 4 sunflowers: Accommodation with separate bathroom and toilet for each room, well equipped with furniture, and having a separate common living room and dining room, garden and parking facilities for guests. 3 sunflowers: Accommodation with separate bathroom and toilet for the guests, living room and dining room, garden and parking facilities availabel for guests. 2 sunflowers: A moderately equipped accommodation, a common bathroom and toilet, common dining room and kitchen access for the guests, and parking facilities. 1 sunflower: Accommodation with no conveniences, a simple sleeping place, or nomadic campsite for tents, and parking facilities.

  19. Human requirements Personal traits of accommodation providers: • Cleanliness, hospitable, friendly behaviour, openness • Language skills (for foreign visitors) • Professional skills for catering and hospitality management, farming and additional businesses Education: Vocational post-secondary (ISCED 3.1) – farm housewife training • Cooking, household chores, basic hospitality skills • Agricultural skills and knowledge (animal husbandry, horticulture) • Knowlegde of folk traditions • Entrepreneurial skills and knowledge (taxation, business management, marketing) National Registry for Vocations and trainings: 1998 • Vocation: farm-housewife trainings at various levels (2200 – 2500-3000 hours of teaching, after primary school) • Village caterer and accommodation provider (from 2006, 1 year, 1300 hours, ISCED 3.1)) • Hospitality management (ISCED 3.2) • Tourism management (ISCED 5.1-5.2 -5.4-5.5)

  20. 5. Legislation • Rural tourismaccommodation: private accommodation, not situated in a town or a designated spa or resort, with • the number of beds not greater than 10, the number of rooms not more than 5 • one visitor stays not longer than 30 days. • Rural tourismaccommodation providers: qualified accommodation, and the activity registered at the notary of the settlement • Rural caterer: provides meals and / or programmes for the guests / may provide rural accommodation, too • Grading procedure for rural accommodation: • FATOSZ grading forms, • Form „A”: for guest rooms - Form „B”: for holiday flat – • Form „C”: for holiday house - Form „D”: for campsites • Taxes – VAT + Income tax (+local taxes?) • 2009: no income tax paid if annual income • 400 000 HUF(approx 1500 EUR) of rural and agri tourism services •  800 000 HUF (approx 3000 EUR) of rural accommodation provided •  1200 000 HUF (approx 4500 EUR) of rural and agri tourism services and rural accommodation provided together • No health insurance to be paid for the above! • From 2010 this allowance is no longer available, all rural tourism services will be taxed (19% of profits)

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