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Tourism Agency: Govt Support to Sector ‘Outstanding’ in European Comparison

MTI-Hungary Today 2020.12.30.

Government support for Hungary’s tourism sector of 800 billion forints (EUR 2.2bn) “is outstanding in European comparison”, the Hungarian Tourism Agency said in a statement on Wednesday.

The tax holiday for service providers in the case of development contributions and tourism tax has been extended to the end of the special legal order expiring on Feb. 8.

Hospitality Industry in Trouble: Will the Government's Financial Aid be Enough?
Hospitality Industry in Trouble: Will the Government's Financial Aid be Enough?

The new coronavirus restrictions are expected to once again impact the hospitality industry negatively. The government has therefore offered tax cuts and financial aid to firms; for the restaurant and related industries 50% of gross wages, for hotels, 80% of missed revenue from bookings. Will this keep the sector afloat? Feast on this In restaurant […]Continue reading

The aim of the support is to alleviate the burdens of the sector which has been most hit by the coronavirus crisis, and to help companies survive and preserve jobs in a period when commercial accommodation providers and restaurants are not allowed to have customers, it added. The agency said the sector represents 13.5 percent of Hungary’s GDP, employing some 400,000 people.

At the same time, the statement noted that companies will be expected to pay the taxes retroactively unless the amount due for the period is zero.

Featured photo by Attila Balázs/MTI