Dr. Ákos Niklai, Chairman of the Board Hungarian National Tourist Office March 28, 2007

In the heart of Europe for over 1100 years Member of the European Union since May 2004 HUNGARY

FIGURES / YEAR (2006) VISITORS: 41,0 MILLION GUESTS: 7,0 MILLION GUEST NIGHTS: 19,0 MILLION RECEIPTS: ~ 3,4 MILLION EUR (2005) TOURISM IN HUNGARY ECONOMIC IMPORTANCE GDP: 8,5% Employment : employees 12,5 % of total employment (direct & indirect) Number of visitors increased by 6,2% Domestic guest nights increased by 9,5% (2006/2005) Ratio of foreign guest nights: 51,6% Ratio of domestic guest nights: 48,4%

70% of guest nights spent in hotels 799 hotels; 113,298 beds in Hungary 4* hotels: 122 units (+4% /2005) 5* hotels: 18 units (+2,5% /2005) 75 % of guest nights spent by guests from the European Union HOTELS IN HUNGARY Hotel room revenues increased by 15% (2006/2005) 113,2 billion HUF 2002 UNITS 2005 UNITS 2005/2002 4* hotels % 5* hotels %

Accommodation

MAIN SOURCE MARKETS: GERMANY GREAT-BRITAIN, IRELAND AUSTRIA ITALY USA PRIORITY SOURCE MARKETS Most Promising Markets: Northern Europe (Denmark & Sweden) France Czech Republic, Slovakia Poland Romania Russia Emerging Markets: Holland and Belgium; Spain; Japan; Switzerland; Israel; Ukraine; China

Marketing communication is focused on FOUR MAIN PRODUCTS (abroad): BUDAPEST LAKE BALATON HEALTH TOURISM BUSINESS TOURISM TOURISM IN HUNGARY As well as BUILDING AND IMPROVING THE IMAGE OF HUNGARY AS AN ATTRACTIVE TRAVEL DESTINATION

Pearl of the Danube Magical Panorama: UNESCO World Heritage 237 Monuments – 223 Museums Internationally Recognized Cultural Events & Festivals Rich Architectural Heritage Europe’s Largest Spa City : 100 Thermal Springs Europe’s Largest Parliament Europe’s Largest Synagogue BUDAPEST – The capital city 2,4 million guests 6,0 million guest nights 14 five star and 39 four star hotels in Budapest In 2006:

BUDAPEST

Culture and more … not only in Budapest

The largest fresh water lake in the European Union. The favourite summer holiday destination in Hungary. Focusing on families, wellness and culture. LAKE BALATON Water quality monitoring According to European standards Excellent! Pleasantly warm Sandy, grassy beaches Safe for small children Water sports Spa & Wellness centres Famous wine regions

LAKE BALATON

medicinal spas medicinal spa-hotels wellness-hotels ancient bathing culture still operating Turkish baths from 16th C. SPA AND WELLNESS HUNGARY BOASTS THE WORLD’S 5TH LARGEST SUPPLY OF THERMAL WATERS

SPA AND WELLNESS

New 5000-seat congress center to be built in Budapest Number of conferences growing continuously Average lengths of stay 4,4 days MICE – BUSINESS TOURISM *According to the data published by ICCA (International Congress and Convention Association) This achievement can be attributed to Hungary's positive image, high quality accommodation facilities and also to experienced Hungarian program organizers. BUDAPEST IS THE 8TH MOST POPULAR CONFERENCE DESTINATION IN THE WORLD*

MICE

Active Holiday

Excellent Hungarian food and drinks flavour the time spent in Hungary

HUNGARIAN NATIONAL TOURIST OFFICE – I. Tourism, sport and regional development are supervised by the Ministry of Municipalities and Regional Development since summer 2006, ensuring the synergy of these issues. HNTO’s main goal is to increase the number of guests, guest nights and tourism receipts. Strong emphasis on the cooperation with the tourism trade and strategic partners.

HUNGARIAN NATIONAL TOURIST OFFICE – II. Priority ranking of the marketing communication tools of HNTO in 2007: E-marketing, PR, press trips, Travel trade events and study tours, Advertisements, Publications, Exhibitions, presentations, road shows.

HUNGARIAN NATIONAL TOURIST OFFICE – III. E – M A R K E T I N G – Hungarian, English, German Web Sites In 25 Countries In 27 Languages

HUNGARIAN NATIONAL TOURIST OFFICE – IV. E – M A R K E T I N G OnTir - Online Tourist Information System 25 Thousand data in 24 Different Subjects Contact Center – 24 hours Toll-free Calling from Inland and 7 Foreign Countries

NATIONAL TOURISM DEVELOPMENT STRATEGY - NTDS Adopted by the Government on September 28, 2005 Drafts the future development of the tourism sector in Hungary Made in line with European Union practices Financing: Private Capital + European Union funding

NATIONAL TOURISM DEVELOPMENT STRATEGY - NTDS NEW APPROACH: Tourism is part of life, not only an economic sector  Top Priority: improving the quality of life NTDS is based on 5 pillars: 1.Competitiveness & Quality of Life 2.Tourism Supply 3.Conditions of Reception 4.Human Resources 5.Operational System

NATIONAL TOURISM DEVELOPMENT STRATEGY - NTDS PRIORITIES OF STRATEGY: Competitiveness Priorities of product development Innovation Destination development in the regions Accommodation and catering services Education Recognition and appreciation of tourism Reorganization of the system of regional institutions

NATIONAL TOURISM DEVELOPMENT STRATEGY - NTDS PRIORITIES OF PRODUCT DEVELOPMENT ON A NATIONAL LEVEL: Health Tourism Heritage Tourism Congress Tourism

NATIONAL DEVELOPMENT PLAN II - NDP Tourism related sections of NDP II. ( ) are based on the National Tourism Development Strategy Nearly 300 billion HUF will be available for tourism development projects, that can induce investments in a value of 1,000 billion HUF (approx. 4 billion EUR)

A LOUD WELCOME

THANK YOU FOR YOUR KIND ATTENTION !