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Rural Rural Tourism Tourism

DevelopmeDevelopment in nt in

HungaryHungaryDr Zsuzsanna BacsiDr Zsuzsanna Bacsi

Assoc prof, Univ of Pannonia, Georgikon Assoc prof, Univ of Pannonia, Georgikon Faculty, Keszthely – HungaryFaculty, Keszthely – Hungary

h5519bac@ella.hu

Ferenc ZemankovicsFerenc Zemankovics Head of Local Rural Development Office of

Keszthely Microregion , Hungary keszthelyi@vkszi.hu

Nitra, 19 to 21 November 2009Nitra, 19 to 21 November 2009

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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

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OverviewOverview

1. History, importance, relation to rural development

2. Provisions for development- EU and national resources

3. Organisational structure

4. Competencies – human and physical

5. Legislation, taxing

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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...)

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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

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ImportanceSocio-economic Environmental

For local entre-preneurs

• new jobs, • new SME-s,• additional incomes besides

farming• market for local agricutural

products

• reconstruction of rural buildings,

• maintain the quality of environment,

• make villages more attractive

For local community

• new incomes and new taxes improve living standards of local community,

• better infrastructure, • less unempoyed, • social structure improves, • Depopulation stopped, • local identity, • prosperity for other businesses

• resources for protection and rehabilitation of environment and local heritage,

• returning guests• Improved urban-rural

relations

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

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Rural tourism in Hungary, 1998-2008 1998 2000 2002 2006 2008

Number of accommo-dation providers

4 893 6 109 6 840 6659 7460

Number of beds 26 340 33502 40703 41604 45948

Number of guests 81 081 109 832 122 109 157 262

157 262

Domestic 44 104 69 174 82 190 131 678 131 678

Foreign 36 977 40 658 39 919 25 584 25 584

Number of guest nights

431 272 518 488 575 530 572 949

741527

Domestic 210 603 297 362 360 379 474 884 -

Foreign 220 669 221 126 215 151 98 065 -

Average duration of stay (nights)

5,3 4,7 4,7 3,6 3,5

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.

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Rural tourism in Hungary

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

1998 2000 2002 2006 2008

gu

es

ts/b

ed

s/p

rov

ide

rs

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

nig

hts

Number of guest nights Domestic guest nights

Foreign guest nights Number of accommodation providers

Number of beds Number of guests

Domestic guests Foreign guests

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Distribution of rural accommodations (beds) by NUTS 2

regions in Hungary, July 2008

17,4% 13,2%

17,3%

5,1%

32,5%

9,4 %

5,2%

Share of regions by guest nights

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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

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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

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2004-2006: National Development PlanAgricultural 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

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New Hungary Rural Development Programme, 2007-2013

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

LEADER Axis (Axis 4)

NHRDP, 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

developmentType of support: Non-

refundable investment aid.

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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

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Number and type of LEADER applications

Central HU

Central Transd

West Transd

South Transd

North HU

North G Plain

South G Plain

Village reconstruction

Rural tourism

Rural heritage

Micro-enterprises

no

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NHRDP, LEADER dataRegion LAG No of

Beneficiary villages,

Population of

Beneficiary villages,

No of

Projects

Requested support million HUF

Central HU

Central Transd

West Transd

South Transd

North HU

North G Plain

South G Plain

Total HU

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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

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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

• ...

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4. Competencies

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.

Physical requirements:The FATOSZ has introduced the the quality assurance and quality grading

system of rural accommodations in Hungary.

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Human requirementsPersonal traits of accommodation providers:• Cleanliness, hospitable, friendly behaviour, openness• Language skills (for foreign visitors)• Professional skills for catering and hospitality management, farming and

additional businessesEducation: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)

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5. Legislation • Rural tourism accommodation: 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 tourism accommodation 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)