Latest developments in Hungarian national tourism

legislation: possible framework of a new tourism act

22nd IFTTA Conference Rome 1-5 September, 2010

Dr Gyenizse DorottyaHungary

Ministry for National EconomyTourism Department

Topics

Overview on tourism acts in force

General trends, legislative content

Possible framework of a new Hungarian Tourism Act

Hungarian national tourism legislation under way and latest developments

Conclusions – debate questions

Overview on tourism acts

Comparative summary of European tourism acts in force and practice + other international best practices

Sources: internet, IFTTA, UNWTO Lextour

Examination: adopted by Parliaments (highest level) and general legal framework for tourism

EU 27 – existing acts: Austria (regional level), Belgium (regional level), Cyprus, Bulgaria, United Kingdom, Estonia, France, Ireland, Lithuania, Malta, Italy (regional level), Portugal, Romania, Spain (regional level), Slovakia

Other countries: Argentina, Israel, Brazil, Mauritius, Trinidad and Tobago

Overview on tourism acts

We can not talk about general systems – there are different approaches and interpretation for legislative content and scopes.

Main differences, examples:

- complex general acts (mixed regulatory issues)

- acts on tourism organisational structures (State, public organisations), competences, tasks, national promotion/marketing

- acts on tourism development

- acts on tourist activities, tourist services (conditions, registers, licenses, categorization etc.)

Differences arise from different legal systems as well.

Overview on tourism acts

Main regulatory elements

1. General provisions, principles, objectives: eg. development, facilitation, accessibility, competitiveness, sustainability, protection of tourists/service providers/tourism attractions, elimination of illegality and unfair practices, significant role of tourism, social factors

2. Definitions: tourism, tourist, visitors, tourism attractions/resources, tourist services, tourist activities, tourist product, recreation territory/area, tourist association, tourist information system, organised tour, tour operator, travel agency, tourist guide, types of accommodations, travel contract, tourist voucher

Overview on tourism acts3. Organisational structures, competences: tourism

related tasks and competences at central, regional and local levels (State, central administration, ministries, public organizations, regional and local authorities, regional and local tourism associations, tourism civil associations etc.), territorial systems, promotion/ marketing organisations, strategic planning, development

4. Tourist activities, service providers, tourist attractions: definitions, collection of different tourist services and activities (accommodation services, tour operators, travel agencies, tourist guides, restaurants, tourist information systems, tourist products, other service providers etc.), licensing/authorization systems, registrations, categorization systems

Overview on tourism acts

4. Monitoring systems, supervisory, sanctions: tourist activities, violation of requirements, monitoring procedures, sanction systems

5. Rights and obligations: tourists, tourist service providers, implementation of UNWTO Global Code of Ethics

6. Other issues: integrated tourist information system, tourist attractions, tourist facilitation, investment policy, promotion, social factors

Possible framework of a new Hungarian Tourism Act

Premises

Need for tourism act for 10-15 years on behalf of the tourism market (tourism stakeholders, tourism civil associations)

Former proposal on Tourism Act : More than 3 years negotiation on the draft Act after adopting the National Tourism Strategy 2006-2013 former Government presented to the Parliament in May, 2008

Long conciliation process with Ministry of Justice (strict judiciary dogmas)

Due to lack of political compromise and support it was finally recalled by the Government

Possible framework of a new Hungarian Tourism Act

From 2010 April new Government’s aim: according to the new National Strategy Programme to work out and present proposal on Tourism Act to the Parliament

Main elements and focus points of the new tourism strategy and plans – implementation elements must be included:

‘Healing Hungary’, development of ‘health industry’, health and wellness tourism, improvement of tourist demand, related tourist activities, unique tourist attractions

Possible framework of a new Hungarian Tourism Act

1. Scope, general provisions, objectives

to define tourism related State’s competences and tasks, role of territorial organisation and local governments

to ensure and develop environmental friendly and ‘guest focused’ tourism

to protect and utilize tourist attractions

sustainability, competitiveness, development, accessibility

Personal scope: State, organisations, tourists, tourist service providers (enterprises)

Material scope: tourist activities

Possible framework of a new Hungarian Tourism Act

2. Main definitions

Tourism, tourist, visitor, tourist service, tourist product, tourist activity, tourist service provider

Types of tourist products: health tourism, health industry, wellness tourism, ecotourism, rural tourism, cultural tourism, active tourism, youth tourism etc.: connection with new Strategy and action plans

Non-profit tourist activities: special accommodations, services

Territorial system: tourist region, recreational territory, tourist destination, tourism destination management

Tourism development, tourism planning

Possible framework of a new Hungarian Tourism Act

2. Main definitions

Tourist activities: accommodation services, catering, tour operators, travel agencies, tourist guides, equestrian service providers, health and wellness tourist activities (spas, medical centres), rural tourism activities etc.

3. State’s role, organisational structure

Parliament: competences and tasks, relation with other legislative tasks and acts, Committee on Tourism and Sport

Government: competences and tasks, Strategy, inter-governmental committees, EU representation

Possible framework of a new Hungarian Tourism Act

3. State’s role, organisational structure

Minister for National Economy: concrete competences and tasks, conciliation with other related ministries in the field of tourism development and intersectorial issues

National Tourism Board: advisory committee of the minister, consisting of representatives of tourism civil organizations

National Tourist Office: marketing and promotion

Regional level: tourist regions, regional organizations' role and competences under negotiation – relation with TDM system, relation with regional developing councils (EU Funds)

Possible framework of a new Hungarian Tourism Act

3. State’s role, organisational structure

Local level: territorial regulation, to define recreational territories and resorts, requirements, statistical requirements (integrated tourism territorial system), local governments’ competences and tasks

Other tourism organisations: chambers, civil associations

4. Financial system

Central budget and funds for tourism development

EU Funds and financial grants

Regulatory system for regional and local funds (contribution rules and expenditures)

Local taxes: local tourism development, promotion (proportion for refund)

Possible framework of a new Hungarian Tourism Act5. Strategy, planning

System for tourism development planning, methodsAdoption and conciliation procedure for tourism strategy and action plansTasks and competences

6. Tourist activities, requirements for tourist enterprisesBasic requirements (special rules in Government’s and ministerial decrees): form, operation, types of activitiesTrade mark system (categorization for accommodations), tourism civil associationsCode of ethics, adoption and implementation

Possible framework of a new Hungarian Tourism Act

Authorization and notification systems, proceduresIllegal and unfair practices, harmonised sanction systemAuthorities’ competences and tasksPersonal data protection and treatment

7. Rights and obligations (collection)Implementation of UNWTO Global Code of Ethics + EU recommendations + special national characteristicsTourists/visitors: eg. respect, awareness, consumer protection, information, relation with fundamental rights, access, ‘multicultural effect’, protection of tourist attractions

Possible framework of a new Hungarian Tourism Act

Tourist enterprises: eg. sustainability, requirements, cooperation, freedom and linearization of services, competitiveness, ethical and fair practices

8. Final provisions

Application and implementation rules

Empowerment provisions (for lower legislation level)

Connection with other legal acts: necessary modifications

Latest developments in Hungarian national tourism legislation – under way

New Act on travel activities (tour operator and travel agency activity) – under negotiationsFollowing the aims of 126/2003/EC Service Directive and new Hungarian Service Act CLXXVI/2009.Definitions, main purposes of the activities, technical and personal requirements of the activity, registration procedure, administrative requirements, financial security (bank guarantee, insurance, deposit), inspections, sanctions (cancellation from the register, fine) Screening results:

- maintain pre-registration for travel companies in case of establishment

- notification in case of cross-border services- competences of authority- simplification of procedures- electronic administration

Big debate with stakeholders on the financial guarantee system (Government’s aim is to increase minimum sums after certain bankruptcies recently)

Latest developments in Hungarian national tourism legislation – under way

Accommodation services: new legal act adopted by the Government in 2009 on authorization of accommodations

New license system was introduced: accommodation-licence for the establishments (different authorities are involved, but only one procedure to the client)

Authorization is connected with the establishment not with the activity and the service provider

New standardization proceeding: involving civil organizations – trade mark system owned by the Ministry, not obligatory, registration process is under way

ConclusionsAdoption of general tourism act or maintain special and fragmented regulatory system?Aim: better regulation system – more effective legislation and implementation, legal dogmatic questions (elimination of over-regulation)Legislative level: for introducing general system in Hungary the legislator must be the ParliamentReview of other legal acts adopted by the Parliament due to parallel regulatory elementsImplementation of tourism strategies and developing plans: general rules must be included Rights and obligations: relation with the Constitution, introducing ‘tourism rights and obligations’?

Thank you for your kind attention!

Dr Dorottya GyenizseMinistry for National Economy

Tourism DepartmentHungary

Tel: + 36 1 795 3357 E-mail: dorottya.gyenizse@ngm.gov.hu