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Hungarian baths are in crisis; Due to the epidemic, the lack of guests has caused at least a 50 percent loss of revenue this year, which is why companies are forced to lay off almost 5,000 workers across the country by March 2021, thus that immediate government and sector intervention is needed, Attila Boros said.
More than 76 percent of spas will not be able to survive the crisis on their own until spring 2021 because they fell short of their final reserves under spring restrictions in the first wave of the epidemic, so the reduction had to begin this fall, the MTI was cited.
According to their latest industry-representative research, compared to October last year, spas plan to reduce their workforce by 26.3 percent by March 2021, meaning the loss of at least 4,700 jobs across the country. 3/4 of the spas were forced to employ part-time workers.
They need support, they couldn’t borrow
I would like the government to create a non-reimbursable liquidity fund of HUF 35 billion to partially compensate the sector for lost and future income and to preserve jobs.
Immediate intervention is needed to save the sector, as 93-95 percent of Hungarian spas are owned by the local government, so they cannot apply for the loan programs announced so far: László Attila Boros attracted attention. The government loan program would not be a sufficient solution either, since according to their data at the end of September, the average stock of debt of the spa operators was 453 million HUF, so they could not obtain new loans with the guarantee municipal.
Suppliers are also in a difficult position
The sector, which is one of the engines of tourism, employs 18,000 people and the turnover of 214 prominent tourist resorts averages HUF 95-100 billion a year. 71 percent of all Hungarian guests’ nights take place in and around one of the major spa towns. Resort turnover fell nearly 20 percent this year in the peak summer months compared to the same period last year.
According to Imre Kovacsics, vice president of the bathroom association, due to the epidemic situation, the situation in the sector is not expected to improve in the next 8-10 months. From the autumn of this year, in addition to those who work in spas, the whole range of providers of domestic facilities, catering units and small entrepreneurs will find themselves in a difficult situation.
In addition to Lake Balaton, the state should also campaign for spas.
Hungarian toilets are also the safest facilities in the epidemic situation, with strict adherence to strict hygiene standards, the vice president said, according to the MTI. They are also asked to organize a marketing campaign, similar to the tourism campaigns at Lake Balaton, to increase the number of visitors to the spas.
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