HÉVÍZ.

The overall situation of tourism in 2012

According to the estimation of IPK International made on the basis of the results of the WTM-survey, a total of 6.8 billion foreign and domestic journeys were made by the world’s population older than 15 years of age in 2012, which exceeds the number of travels in 2011 by 2.5%. The number of domestic trips increased by 2% to 5.77 billion, the number of outbound trips grew by 4% to 1.03 billion in 2012. The number of international travels went up by 4% globally, however, the time spent on travelling became longer only by 2%. It means that trips were shorter in 2012. Travel expenses enhanced by 7% to 875 billion Euro worldwide in 2012. (The amount per trip grew by 3%, the expenditure per night increased by 5% in 2012.)

In spite of economic and political difficulties, European tourism had a favourable year in 2012, and similar results are expected by tourism experts for the year 2013. In the first half of 2012, most European destinations experienced growth in the number of foreign guest and guest nights. The indicators have improved especially in the Baltic countries and in Central and Eastern Europe, but the great West European destinations, such as Germany, the UK, Austria and Spain also reported an increase in the first 5-8 months of the year 2012. Data show that the share of trips within Europe   improves to the detriment of more expensive journeys to more distant places. The positive changes are confirmed by the data for the first 9 months of 2012 provided by STR Global: the occupancy of European hotels were 66.9%, 12 of the 27 cities analysed showed a positive shift compared to the same period of the previous year. In Europe, hotels recorded an increase of 5.3% in average daily price (ADR) and 5.1% growth in RevPAR.

1.2 Hungarian trends

In parallel with the improving trends of the international tourism, Hungarian tourism is in the upward trajectory again with particular regard to inbound tourism. In 2011, the results of Hungarian tourism exceeded the results of the pre-crisis year 2007. The positive trend can also be observed in 2012.  The number of inbound travels and guest nights increases above the European average. The trend is nationwide but the most dynamic growth takes place in Budapest. The cause of this change, beyond international processes, the restructuring of air traffic, which occurred following the shutdown of Malév in February 2012. According to the data of Budapest Airport and the Central Statistical Office, the replacement of the lost capacity after the shutdown of the national airline does not reach the level of the previous year, although approaches it with the newcoming flights entering the summer season schedule. The decrease in the total number of passengers is 4.6%. The number of transit passengers declined significantly (–79.5%). Consequently, the number of passengers arriving in Hungary and Budapest with tourism motivation changed in a positive direction. The share of air carriers changed remarkably. Contrary to previous years, it largely shifted towards low cost airlines. It effects greatly the motivation, therefore the composition and the propensity to spend of the tourists arriving in Hungary.  

Tourist traffic at commercial accommodation establishments shows an overall improvement. According to the preliminary data of the Central Statistical Office, the number of guests exceeded the data of the first nine months of 2011 by 2.8% and the number of guest nights by 4.1% at commercial accommodation sites in the first 9 months of 2012. 6.5 million tourists spent 17.3 million guest nights at commercial accommodation establishments between January and September 2012. The commercial accommodation’s gross room revenue increased by 8.9% from January to September 2012. 88.3% of the total gross room revenue was generated in hotels. The price index of the accommodation service and catering calculated for January-September was 4.6% higher than a year earlier. Within this, in the field of accommodation service there was a 2.7% price growth. The average commercial accommodation occupancy rate was 40.1% in the first nine months of 2012. The occupancy rate in hotels was 48.6%, in thermal hotels it was 57.4% and in wellness hotels it was 48.6%. The first nine months of 2012 is characterized by a better than average hotel performance: according to the statistics of the Central Statistical Office, the number of guest grew by 5.5% and the number of guest nights by 7.7% compared to the same period of the year 2011. Based on the data of STR Global European Hotel Review, the occupancy of the Hungarian hotels participating in the survey increased by 3.8 percentage point, whereas the European average decreased by 0.2 percentage point in the first nine month of 2012.

According to the preliminary data of the Central Statistical Office, commercial accommodation sites nationally recorded more than 3.2 million foreign visitors and 9.0 million foreign guest nights in the first nine months of 2012. The number of foreign guests went up by 7.4% and the number of foreign guest nights by 78.6% compared to the same period of the previous year. The foreign visitors’ average length of stay was 2.8 nights. The room revenue from foreign guests rose by 11.0% in commercial accommodation establishments and by 11.9% in hotels. In case of hotels, the number of foreign guests was 9.2% higher and the number of foreign guest nights was 10.8% higher than a year earlier. Thus, the tendency, according to which tourists are increasingly interested in higher-quality services and higher category accommodation, also prevails in inbound tourism.

1.3 Health tourism trends

The WHO predicts that tourism and health industry together will become one of the dominant economic sectors of the world by 2022. The most typical trend is the increase in the proportion of the elderly population in developed countries, which are our largest source markets.  Seniors, who are increasingly health-concious and more and more experienced in the field of travel, generate a growing solvent demand in the health tourism industry. The demand increases for connecting self-funded medical treatments with tourist experiences in welfare societies. Health tourism plays an important role in domestic and inbound tourism as well. Nearly a third of domestic guest nights of commercial accommodation and more than 47% of domestic guest nights of hotels are registered in thermal and wellness hotels. Based on the Central Statistical Office’s demand survey, the third most common major touristic motivation is health tourism (therapy or wellness) among foreigners visiting Hungary. It is also reflected in the indicators of commercial accommodation. Health tourism is characterised by longer average length of stay, higher spending, less seasonality and taking higher-quality services. The latter is shown by the fact that, in 2011, 27.3% of hotel capacities could be found in hotels directly serving health tourism, and thermal and wellness hotels have a 33.2% share in the guest nights of hotels and a 34.8% share in the gross income of hotels. Thermal hotels have a better than average occupancy rate and wellness hotels are charecterized by an average occupancy rate.

(Source: Hungarian Tourism Ltd., Strategic Plan 2013)

Source: Hungarian Central Statistical Office

On the basis of the data available, the table chart compares the tourist traffic data of the first 11 months of the year 2012 with the base data of the year 2011. 

Overall, it shows a 0.9% growth in the number of guest nights in addition to a 0.2% increase in the number of guests. Within this, a slight decrease of domestic guest turnover and a slight increase in foreign visitor turnover can be observed.
Regarding the source countries, Russian (+40.6%) and Ukranian (+12.9%) increase in traffic is extremely high, but the rise in Slovakian (+10.7%) guest nights is also intensive.
Although the decline in guest nights from traditional source areas has slowed, it is still significant. Even the special advertisements in Germany and Austria cannot counteract the fall in the number of therapy guests.
Regarding guest nights, Russian and Ukranian guests generated 186,857 guest nights in the town, whereas German-speaking countries (Germany, Austria and Switzerland) made a total of 356,457 guest nights.

2.1 The share of touristic regions in the total number of guest nights

2. Analysis of competitiors

2.1 Health tourism

In the field of spa tourism the highest-positioned destinations of Europe/Central Europe are the North Italian “Terme Regio” (e.g. Abano Terme, Montegrotto Terme), the Swiss and German spa towns and sanatoriums (e.g. Bad Ragaz, Bad Zurzach, Zermatt, Arosa, St. Moritz, Lugano, Baden-Baden, Bad Wildbald), and the once significant spa towns of the Austro-Hungarian Empire (e.g. Karlsbad, Marienbad, Bad Ischl).

- Italian, Swiss and Bavarian spa towns have extremely high-positioned products. In addition to the curative factors and the high-quality complex treatments, the communal environment, as well as the varied recreational and cultural programs are integral parts of the product. These are well-managed destinations with efficient communication activity, and favourable price-performance ratio in spite of the high price. These health resorts are positioned much higher than Hévíz, therefore they cannot be mentioned as direct competitors.
- The competition with the former spa towns of the Austro-Hungarian Empire is based on the approach of therapy and the similarity of medicinal treatments. The best-known and most prominent competitors may be Karlsbad (Karlovy Vary) and Marienbad (Marianske Lazne).
- Today, other spa towns of the Austro-Hungarian Empire differ from Hévíz in view of their orientation (such as, Bad Ischl) or their current status (such as, the baths in Transylvania and Upper Hungary), however, in point of therapy, bath culture, and historical traditions they are still similar. Pöstyén (Piestany) has developed significantly recently. Its low prices attract tourists, but the real content behind the services lags behind that of Hévíz’s. Beside the conditions, Hévíz has a significant competitive advantage.

3.2 Price (EUR) of a double room (for 2 people) with a one-week cure package in high season

Prices show the cheapest accommodation price available per category per town.

The comparison of one-week cure packages shows clearly the positioning of the services of Hévíz compared to that of the competitors’. The prices in Abano and Montegrotto highly exceed the prices of Hévíz (and the other competing towns) in every category.

In case of commercial accommodation, the rates of the 3-star category are favourable in Hévíz in the domestic comparison. However, in the 4-star category, the rates in Hévíz are higher than in Hajdúszoboszló. The foreign accommodation prices in the three-star category are higher in every case, however, in case of the four-star category, Karlsbad and Marienbad offer better opportunities.

In addition to the price level of accommodation sites, the following table chart demonstrates the position of Hévíz in the ranking of domestic spa towns. Although Hévíz definitely precedes its competitors, it is worth calculating with the guest night growth rate of each town. Whereas the increase was 8.49% in Hévíz between 2009 and 2011, the rise was 23.2% in Bük, 18% in Sárvár and 9.7% in Zalakaros. The high levels of growth in Bük and Sárvár can be explained by the bath development of the last 2 years. In case of Hajdúszoboszló, the growth rate seen in previous years seems to turn around.

3.3 Guest traffic data of commercial accommodation facilities

Source: Hungarian Central Statistical Office

3.4 Wellness and spa complexes

In terms of potentiality Hévíz is a spa destination, but wellness can also be found among its service offers and clientele. The unique features, existing in connection with therapy, does not apply to the area of wellness, and the supply is much larger. Every Hungarian, Austrian, Slovenian, German, Czech, Slovakian and Polish wellness complex can be seen as a competitor.
Following the development of Austrian spas, the number of Austrian and German guests dropped significantly. In addition to this, a wellness tourist is not willing to travel nearly a thousand kilometre for a few days’ regeneration.
The quality and range of services in Czech, Slovakian and Polish spas do not go before Hévíz. Their competitive advantage lies in less time-consuming travel, stronger communication and better country image.
The lack of adventure elements and additional family-friendly services is a clear competitive disadvantage in domestic wellness market.
In domestic internet search trends, we have lost the outstanding results of the year 2011, namely, that the tenth most popular searched word in the topic ‘wellness’ was ‘Hévíz’. In 2012, the names of emerging baths and spa towns, such as Gyula and Zsóry Thermal Bath and Spa, have also appeared in search trends. The change in search trends demonstrates that Hévíz hasn’t got such a clear competitive advantage in the area of wellness domestically as it has in the field of health tourism.
However, those who are searching in the topic of wellness come across a high proportion of Hévíz offers, since, usually, there are offers of Hévíz at the head of the hit list for the most popular search keywords such as, “wellness hotel” and “wellness weekend”

3.5 Number of visitors in town baths (person)

Source: Baths’ supply of data

The demand for spas is well demonstrated by comparing their numbers of visitors as well. The institutions with larger adventure spa cannot even exceed the attendance of Hévíz Lake Bath in every case (such as Sárvár and Zalakaros). However, the extended range of wellness and adventure elements clearly contributes to the high numbers of visitors in Bük and Hajdúszoboszló.

3. Summary

On the whole, it can be said about the tourism in town Hévíz that it is in harmony with European trends. At the same time, in spite of its declining performance, the Western Transdanubian Region performed beyond expectations. Last year’s record number of guest nights was surpassed by nearly 20 thousand nights.  

It can be observed that the dialogue with service providers, the enhanced marketing activities, and the joint work in foreign markets initiated and coordinated by the town administration have results even in the short term. Every condition is given to ensure further development by the launch of new routes and additional tourist development of the town in accordance with our plans.