PARTNERSHIP OF GOVERNMENT AND NONGOVERNMENTAL ORGANISATIONS IN THE

PARTNERSHIP OF GOVERNMENT AND NONGOVERNMENTAL ORGANISATIONS IN THE FIELD OF TOURISM: THE HUNGARIAN EXPERIENCE AKOS NIKLAI Vice President of the Hungarian Hotel and Restaurant Association Treasurer and EXCOM member of HOTREC Moscow, Russian Federation 19 March, 2012

HUNGARY

Tourism in Hungary üA key, strategic sector in the national economy ü 5. 9% direct contribution to GDP ü 9. 8% of total workforce üOver 4 billion € receipt üBoth inbound and domestic tourism is significant üBenefits from EU funds

Key Tourism Products MICE st Budape Lake Culture Spa & Wellness Bala ton

Hungarian Hotel and Restaurant Association • Established in 1968 • Membership: 388 hotels (representing 726 restaurants), 22 educational institutions, 110 associate members • Membership coverage 77% (by room number) • Purpose: ürepresents the interest of Hungarian hotels and restaurants ürepresents the Hungarian hospitality industry on international level ülobbying üdevelopment and growth of the hospitality industry

BRIEF INTRODUCTION TO HOTREC What is HOTREC? • Umbrella association of national associations representing the hospitality sector in Europe (Hotels, restaurants, cafés & similar establishments) • 43 national associations / 26 European countries HOTREC’s main objective: • Representation / Advocacy of the hospitality sector interests before the EU institutions

7 HOTREC European hospitality sector in the EU-27 • 1, 7 million enterprises • 9, 5 million persons employed Compare! Automotive production: 2, 2 million Chemical industry: 1, 9 million • 195 billion EUR value added Compare! Automotive production: 155 billion EUR Chemical sector: 194 billion EUR

8 HOTREC What is doing HOTREC on a regular basis? • Monitor EU developments of likely impact on the sector • Coordinate Members’ views • Exchange of best practices • Lobby EU Institutions: ü Commission ü European Parliament ü Council of Ministers

9 HOTREC Main EU policy issues: • • • VAT Quality Social affairs Sustainability Hotel classification Fire safety Consumer protection Copyright Food & Health issues Standards ICTs in tourism and many others…

10 HOTREC - UNWTO • HOTREC is affiliate member of UNWTO • Good relationship and looking forward to strengthen it • HOTREC President participated in a recent UNWTO round table discussion on consumer protection and accommodation services (ITB Berlin, 9 March 2012)

Hotelstars Union Unified European Classification System • 2007 idea (Austria, Germany and Switzerland) • 2009 7 founder countries (Austria, Czech Republic, Germany, Hungary, Netherlands, Sweden and Switzerland) • 2011 4 new members (Estonia, Latvia, Lithuania and Luxembourg) • Currently 11 countries (18 000 hotels, 150 million inhabitants) • Further interest from other EU and non EU countries

Objectives & Advantages • • Same principals of classification Criteria – developed based on guest surveys Clear communication of star-rating Improve quality and satisfaction International trademark Fair competition on market Dynamic - criteria updated in every 5 years

270 criteria (minimum + optional) 1* „tourist”, 2* „standard”, 3* „comfort”, 4* „first class” and 5* „luxury”

Cooperation of government and NGOs • Since 1990 NGOs role increased government cooperation Forms: • legal framework • government support • government contracting • NGO involvement in government decision-making Benefits: • Strengthening government and voluntary sector relationship • Support the quality improvement and growth of the hospitality industry Other recent examples of the issues: • Smoking • Hygiene, HACCP • Tourism promotion • Tourism strategy

Previous Classification in Hungary National compulsory hotel classification system Responsible authority: Hungarian Trade Licensing Office Categories: 1*- 5* Process: ØSelf-Classification ØNo on-site inspection / control many classification were unrealistic

Hotelstars Union in Hungary • First classification : December 2010 • Voluntary • System operated by Hungarian Hotel and Restaurant Association • Online process: üRegistration üSelf-Classification üOn-site inspection üDecision

Hotelstars Union in Hungary • Total hotels in Hungary 817 ü 345 registered ü 207 classified Ø 72 % 3* and 4* Ø 31% in Budapest Ø 25% superior

Hungarian Tourism Quality Award • „ ” high standard guarantee • 2006 introduced • 2007 Accredited by HOTREC (EHQ level 2) • Valid for 3 years Currently • 171 applied hotels and restaurants 147 winners • Future plans: TA, TO, Taxi

Recent Development üHotelstars national trademark of Hungary üOperation: Ministry of National Economy with the cooperation of HHRA üRecently – the negotiation is ongoing between Ministry of National Economy and HHRA NEW AGREEMENT TO BE SIGNED SOON üBenefits: Øtransparent quality, better information Øincreased consumers protection Øcontribution to competitiveness