1) Hungary took over the EU Presidency on the 1st of July. What are the key priorities and strategies to enhance the European tourism and hospitality industry?
The Hungarian Presidency’s key priority in tourism is to enhance competitiveness, which is fundamentally supported by the tourism sector as a complex ecosystem. To achieve this, the sector’s digitalization must be further developed at the European level.
Having access to relevant data is crucial for monitoring and effectively managing the sector. Our goal is to ensure that all tourism-related policy decisions are based on up-to-date, relevant, and standardised data methods. We believe that the implementation of the STR regulation is a good starting point for testing data-sharing practices between Member States. That is why we would like to support the Commission and Member States in the implementation process. With the help of conferences, surveys, workshops, and best practice sharing we intend to bridge the gap between administrative and technical levels. The EU’s 2020 strategy for Europe’s Digital Future (European data strategy), by creating a common European data space and a unified data market, is only achievable by starting on a smaller scale.
The Hungarian Presidency will also focus on strengthening the competitiveness of the European tourism and hospitality industries. This includes supporting small and medium-sized enterprises (SMEs) and promoting innovation across the sector. Linked to the competitiveness issue, the competitiveness of small and medium-sized enterprises is also on our agenda. Continuing the work started by the trio partners, the Hungarian Presidency is also committed to developing SMEs and making them more competitive and resilient to crises, reducing their administrative burdens, supporting innovation and digitalization, improving the quality of the related regulations, and introducing supporting measures, incorporating the suggestions of the Commission’s SME Relief Package.
Thirdly, labour shortages have been growing in several sectors in Europe for a decade, and tourism is no exception. On 20 March, the Commission presented its action plan to reduce labour shortages which identifies a number of target areas where cooperation is needed to tackle the problem. The plan is to activate Europeans of working age who are currently inactive by training programmes, improving working conditions in certain sectors, and encouraging mobility of students and workers. This topic overlaps the educational priorities of the Hungarian Presidency defined around current issues such as competitive European higher education, adaptation to the digital and green transition, and strategic partnerships in education and training, which must be promoted by tools of vocational training, higher education, and adult education.
2) HOTREC and its members are developing a Road Map to Net Zero by 2050. To implement infrastructural changes, hospitality businesses – 9 in 10 being microenterprises – need adequate EU and national funding. What are the main existing EU budget lines to provide support at EU and national level?
During our Presidency, we will be closely monitoring what steps the new Commission is taking in this direction and we will be working to keep the issue in focus in the budgeting process and in the TRAN Committee as well. The existing EU budget lines are as follows:
Regional Development Fund (ERDF)
The European Regional Development Fund (ERDF) is a multi-annual instrument aimed at supporting regional development and reducing socio-economic imbalances between European cities and regions. It focuses on five key policy objectives including a more competitive and smarter Europe, and a greener, low carbon transition towards a net zero economy. This would support projects related to climate change adaptation, circular economy approaches, renewable energy use, and sustainable transport. The ERDF supports investments in infrastructure, renovations, and other projects that contribute to the green transition of hospitality and tourism. However, these projects must comply with the relevant objectives, enabling conditions, or minimum requirements established for the adopted EU cohesion policy programmes.
Recovery and Resilience Facility (RRF)
The RRF is a key instrument of NextGenerationEU, aimed at making Europe resilient and stronger after the COVID-19 pandemic. It provides funding for modernizing economies and enabling tourism ecosystems to transition to sustainable tourism. The RRF supports projects that focus on digital transition and climate-related measures, such as reducing negative environmental effects and CO2 emissions. It also invests in smart, sustainable, and inclusive growth, productivity, research, development, and innovation.
Horizon Europe
Horizon Europe is the EU’s research and innovation program. It supports projects through calls for proposals, which are open to various sectors, including tourism. The program focuses on green transition, digital transition, and social innovation. It includes initiatives such as the Transition Pathway for Tourism, which aims to facilitate change towards more sustainable and resilient tourism destinations.
Just Transition Fund
The Just Transition Fund supports regions and communities that are heavily dependent on fossil fuels and need to transition to a low-carbon economy. It provides funding for energy-efficiency upgrades, training, and re-skilling. This fund helps in the transition of the tourism sector by ensuring that the necessary skills and infrastructure are in place to support sustainable tourism practices. These funding mechanisms collectively support the green transition of hospitality and tourism by investing in infrastructure, renovations, digitalization, and sustainable practices, while also providing training and re-skilling opportunities to ensure a smooth transition.
National level funding: the Hungarian case
At national level, the Hungarian government has announced a 15-billion-forint (approximately €40 million) aid package to support the tourism industry this year. This financial assistance is aimed at helping the sector recover from the economic impact of the COVID-19 pandemic. The tourism industry, which includes travel agencies, tour operators, and other related businesses, has been one of the hardest hit sectors during the global health crisis. The Hungarian government’s aid package is intended to provide much-needed relief and support to these small and medium-sized enterprises (SMEs) that have been struggling.
The primary aim of the package was to improve the quality of services while at the same time boosting the economy of rural service providers through targeted programmes. One of the main sources of support was 13 billion HUF to support the competitiveness of rural catering businesses. This could provide around 13,000 businesses with the opportunity to purchase equipment and modernise up to HUF 1 million per unit. Apart from fast-food restaurants, mobile catering operators, event and workplace caterers, catering establishments that are registered in the National Data Supply Centre (NTDSC/NTAK), have at least one closed business year and are open all year round are eligible to apply.
3) Revising the Package Travel Directive (PTD) will be a top priority of the Hungarian EU Presidency. How will you ensure that the PTD not only benefits travellers but also travel and tourism companies, which are mostly micro, small, and medium-sized enterprises?
The revision of the currently valid Directive (EU) 2015/2302 on travel packages and linked travel arrangements (PTD) is negotiated in the Council’s Working Party on Consumer Protection and Information since the main purpose of the amendments to the directive is to strengthen the consumers’ (travellers’) rights.
Given that the Directive will have a significant direct impact on businesses operating in the tourism sector, and in order to prepare a balanced, compromise proposal on the part of the Council, tourism experts have also been delegated to the consumer protection team of the Hungarian presidency related to PTD.
The Hungarian presidency, following the principles of the Belgians’, strives to create a balance between consumer protection rights and the stable operation environment of SMEs, therefore the positions of both sides have always been taken into consideration.
The task of the tourism working group is to monitor the progress of the legislation and to continuously encourage the Member States to be active and develop their positions on PTD, especially on issues concerning the main debates. Hungary will work as an honest broker, in the spirit of sincere cooperation between Member States and institutions.
