PARTNERSHIP OF GOVERNMENT AND NON-GOVERNMENTAL 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

Tourism in Hungary A key, strategic sector in the national economy 5.9% direct contribution to GDP 9.8% of total workforce Over 4 billion € receipt Both inbound and domestic tourism is significant Benefits from EU funds

Key Tourism Products Budapest MICE Lake Balaton Culture Spa & Wellness

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

HOTREC 7 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

HOTREC 8 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: Commission European Parliament Council of Ministers

HOTREC 9 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…

HOTREC - UNWTO 10 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 ( 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:  Self-Classification  No 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: Registration Self-Classification On-site inspection Decision

817 Total hotels in Hungary  817 Hotelstars Union in Hungary registered classified  72 %  3* and 4*  31% in Budapest  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 Hotelstars  national trademark of Hungary Operation: Operation: Ministry of National Economy with the cooperation of HHRA Recently – the negotiation is ongoing between Ministry of National Economy and HHRA  NEW AGREEMENT TO BE SIGNED SOON Benefits: Benefits:  transparent quality, better information  increased consumers protection  contribution to competitiveness