Budapest Business Journal 3013

VOL. 30. NUMBER 13

JULY 1 – JULY 14, 2022

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HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

SPECIAL REPORT INSIDE THIS ISSUE

Tourism Törley to Toast 140 Years of Bubbly in Budafok Hungary’s leading pezsgő producer hopes its celebrations will help visitors learn that Budapest has tourist attractions far beyond the popular central party district. 17

Most Hungarians go Digital When Paying Abroad Hungarian travelers prefer using their bank cards or smart devices to pay while holidaying abroad, according to Visa’s Travel and Payment Intentions Study 2022, covering CEE markets. 18

Building Thru Continuity

SOCIALITE

Unraveling Ulysses’ Hungarian Connection When its was announced that Hungary was to be part of Ulysses: A European Odyssey, a project created by the European Commission’s Creative Europe Fund, David Holzer had one question “Why Hungary?”  22

NEWS

Bold Move by MNB Surprises Markets The twin threats of sky-high inflation and a recordweak forint have forced the National Bank of Hungary to change tack and pick up the pace of its tightening cycle.  3

U.S. COUNTRY FOCUS

A change in leadership always brings with it a degree of uncertainty.

U.S. energy giant ExxonMobil has sought to emphasize continuity as Byung Kim (right) takes over from Jeroen Kirschbaum (left).16 BUSINESS

Magyar Suzuki Hopes to Increase Production Magyar Suzuki finished last year behind its financial plan but managed to increase overall and domestic sales. This year, it plans to invest hundreds of millions of forints. 8

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Budapest Business Journal | July 1 – July 14, 2022

IMPRESSUM

THE EDITOR SAYS

READY TO WELCOME BACK THE TOURIST FORINT

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Balázs Barabás, Zsófia

Czifra, Kester Eddy, Bence Gaál, David Holzer, Christian Keszthelyi, Renáta Kónya, Gary J. Morrell, Nicholas Pongratz, Gergely Sebestyén, Robert Smyth.

LISTS: BBJ Research (research@bbj.hu)

Tourism is a sector the contributions of which are easy to overlook. Think of the most significant growth drivers, and what comes to mind are three broad economic fields: industry, services and agriculture. In Hungary’s case, the breakdown for GDP share is 56.64% for services, 24.52% for industry, and 3.38% for agriculture, according to the statista.com website (the figures are for 2020, but were broadly consistent across the decade).

What interests me about how economies are perceived is the weight people give the various sectors. My late fatherin-law was a hospital director but came from smallholder farmer stock. He was convinced agriculture took a far bigger share of GDP than was the case. (We once had a spirited, if good-natured, debate on the subject until I could find a Hungarian source he would trust).

Hungarians have always been good at making things, so it’s no surprise that industry produces about a quarter of GDP. Within this sector, automotive has long been a powerful engine on which Magyar growth is built. It has faced its share of challenges, notably during the financial crisis of 2007-2008, when the money taps were turned off, and people stopped buying cars. More recently, supply chains have been whacked out of shape by COVID and the war in Ukraine.

Most crucially, the shortage of microchips has slowed the supply of new vehicles and pushed up the price of secondhand cars. But automotive has endured in Hungary, where it seems to be managing the switch over to electromobility well.

The service sector takes the lion’s portion of GDP. (Think of all those shared service centers, increasingly making their way up the value food chain and rebranding as business services centers.) Tourism falls into this sector and rather gets lost in the overall picture. The most up-to-date

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OECD Tourism Trends and Policies publication for Hungary was for 2020, relying on data that is not only now several years old but is pre-COVID. Even so, it makes for interesting reading. As the intro says, “Tourism has outperformed growth in the wider economy over the last decade. The sector directly contributed 6.5% of Hungarian GDP in 2017, rising towards 10.2% of GDP when indirect impacts are included.

The same year, tourism directly accounted for over 418 000 jobs, or 9.6% of total employment. Travel exports represented 23.5% of total service exports in 2018.”

COVID lockdowns and travel bans put the sector into a deep freeze, but there were clear signs of a thaw leading to a revival before the war threw a new spanner into the works, if that isn’t mixing too many metaphors. But here’s the critical takeaway; remove pandemics and conflict from the picture, and Hungary’s underlying economic fundamentals are all good, with the exception of demographics. Market players from the sector we spoke to in preparation for the Tourism Special Report inside this issue were generally optimistic, perhaps surprisingly so. They are focussing on what they can control, looking to make their operations as efficient as possible, and putting the customer experience at the core of what they do. Tourists are returning to our streets, if not yet flooding them. July’s Formula One Grand Prix will again see hotels packed. Barring any further calamities, this year should be better than next, but the ugly shadow cast by the war to the east can never be far from anyone’s mind nowadays. For all those in the tourism sector, we can only hope for the best.

Robin Marshall Editor-in-chief

Why Support the BBJ? • Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

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THEN & NOW

Hungary’s national competitor Emma Veisz dives during the qualification round for the one-meter diving board in Hungary’s Duna Arena on Wednesday, June 29.

In the black and white image from the Fortepan public archive, a diver performs in a competition marking the opening of the outdoor diving facilities at the Alfréd Hajós National Pool at Margitsziget (Margaret Island), Budapest, in 1937.

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Budapest Business Journal | July 1 – July 14, 2022

News macroscope •

Bold Move by Central Bank Surprises Markets Changes in the Central Bank Base Rate in Hungary

(March 23, 2004-June 28, 2022, data in percent)

Source:

The twin threats of sky-high inflation and a record-weak forint have forced the National Bank of Hungary (MNB) to change tack and pick up the pace of its tightening cycle.

The MNB surprised the markets with a massive rate hike, in response to which the the forint jumped.

Barnabás Virág at a press conference following the meeting of the council.

According to Virág, the council has continued its interest rate tightening cycle by taking a decisive step to anchor inflation expectations and mitigate second-round inflation risks. In addition, it believes that increasing the oneweek deposit rate to the level of the base rate at the weekly tender following this decision is warranted.

The central bank will also extend the use of the foreign exchange liquidity-providing swap facility from July and will stand ready to use it within quarters as well. The step aims at ensuring that the short-term rate in every sub-market, particularly in the swap market, at all times develop consistently with the level of shortterm rates deemed optimal by the Monetary Council.

Active Presence ZSÓFIA CZIFRA

Way in excess of market expectations, the MNB raised its key rate by 185 basis points to 7.75% at its latest rate-setting meeting on Tuesday (June 28). Both sides of the interest rate corridor were raised by 135 basis points, with the overnight deposit rate increased to 7.25%, and the overnight and one-week collateralized lending rates upped to 10.25%.

Due to the increased challenges, the central bank’s Monetary Council considered it necessary to close the gap between the base rate and the one-week deposit rate, said MNB deputy governor

By maintaining an active presence in the market, the MNB enhances the effectiveness of monetary policy transmission, thereby supporting the achievement and maintenance of price stability.

The central bank’s decisions are 110% focused on the fight against inflation, said Virág; it is of crucial importance to anchor inflation expectations and avoid second-round inflationary effects, he emphasized.

“We need every percentage point, every basis point in the fight against inflation. The Monetary Council will continue raising interest rates as long as necessary. That’s the key to the decisions in the next period,” he said.

According to Gergely Suppan, senior analyst of Magyar Bankholding, the base rate may peak

at

8.5%

and then decrease to 7% by the end of 2023. Suppan added that inflation is high worldwide, with the price of basic commodities, especially, on the rise.

That means the decline in purchasing power will in itself hurt economies, so central banks must refrain from overtightening monetary conditions. As central bankers cannot really influence supply price shocks, their main goal may be to eliminate second-round effects, anchor inflation expectations, and prevent the price-wage spiral, Suppan emphasized.

Not Unprecedented

Zoltán Varga, an analyst at Equilor Befektetési Zrt., was equally surprised by the decision but noted that it is not unprecedented. In the United States, the Fed announced a significant change of 75 basis points two weeks ago, and the European Central Bank, which last raised interest rates 11 years ago, may decide the same next month, Varga reckoned.

Erste’s macroeconomic analyst János Nagy said that raising the one-week deposit rate and the base rate to the same level would make it easier for market participants to follow monetary policy developments. He also emphasized the extension of the use of swap instruments.

He said the change might help exploit the banking system’s excess liquidity.

According to Tamás Isépy, an analyst at Századvég Konjunktúrakutató Zrt., both high inflation and the weakening of

the forint justified the change in interest rates. He believes the extraordinary increase in interest rates, in line with international trends, is mainly due to the higher-than-indicated inflation path in the new central bank forecast, which is due to war processes and the development of raw material and energy prices.

Isépy pointed out that the base rate and the critical one-week deposit rate will be at the same level. Monetary tightening may still be needed, meaning that interest rate hikes could continue for the rest of the year, he added.

The forint jumped after the rate hike, the most significant single rate move

since

2008.

According to Bloomberg analysts, the forint’s plunge forced the central bank to change tack and speed up monetary tightening instead of slowing it, as signaled previously. The currency gained more than 1% after the move. The forint has been treading near record lows after breaching the 400 per-euro level for the first time two weeks ago.

Numbers to Watch in the Coming Weeks On July 6, the Central Statistical Office (KSH) publishes its first estimate of May’s industrial data. May retail trade figures will also come out on the same day. On July 8, June consumer prices will be released.

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Gas Woes, Support for Ukraine, and Talking Peace Prime Minister Viktor Orbán discussed matters of cooperation with Ukrainian President Volodymyr Zelenskyy over the phone on June 21, according to Orbán’s press chief Bertalan Havasi. These ranged from Ukraine’s EU accession to supporting refugees and essential infrastructure.

NICHOLAS PONGRATZ

Regarding Hungary’s stance on Ukraine’s integration into the European Union, Orbán voiced support for Ukraine attaining candidacy status, adding that bureaucratic obstacles impeding the country’s accession should be removed without delay. The PM also noted that Hungary had taken in close to 800,000 Ukrainian refugees and stood ready to help transport Ukrainian grain by rail.

On the same day, the European Commission approved a EUR 1.14 billion Hungarian scheme to support companies negatively impacted by the war or subsequent sanctions against Russia. Some EUR 400,000 is available in direct grants, tax reductions, equity and loans per company.

Notably, while companies from any field are welcome to apply, the upper limit does not apply to the farm sector. Financial companies, however, are ineligible for the aid. The EC concluded that the scheme is “necessary, appropriate

Ukraine

Crisis

Roundup

In a picture released by the Prime Minister’s Press Office, Prime Minister Viktor Orbán (center right) meets with Andres Pastrana (center left), President of the Centrist Democrat International (CDI), a global Christian Democratic party, before the official start of the NATO summit in Madrid on June 29. At the meeting, also attended by the Minister of Foreign Affairs and Trade Péter Szijjártó (seen far right, just entering frame), they agreed on the need to prevent the war in Ukraine from spreading, to support the Ukrainian people and accept refugees. Photo by Zoltán Fischer / MTI / Prime Minister’s Press Office. and proportionate” to remedy a severe disturbance in Hungary’s economy.

Meanwhile, deliveries of Russian gas to Hungary dropped to 88% of their normal levels on June 20 because of technical issues, but the country’s energy supply “remains secure,” Minister of Foreign Affairs and Trade Péter Szijjártó said in a statement issued on his ministry’s Facebook page.

After speaking with Alexander Novak, Russia’s deputy prime minister for energy, Szijjártó said that gas deliveries to Western Europe had been reduced significantly recently because the equipment used for pipeline maintenance has not been returned from repair due to the sanctions against Russia.

Supply Security

Szijjártó said daily deliveries of Russian gas to Hungary have dropped from 12 million cubic meters to around 10.6

million cubic meters but that it did not pose a problem for supply security.

With supply seeming all the more tenuous, Szijjártó said in a later video on his Facebook page following a meeting of European Union energy ministers on June 28 that Hungary is not even willing to countenance a possible extension of sanctions against Russia to gas imports.

“We have no problem with the European Union looking for new sources of gas, but participation in this can only be voluntary; no obligation can be imposed on member states with regard to procurement,” he said.

Energy sovereignty was also emphasized by Gergely Gulyás, the head of the Prime Minister’s Office, in an interview with public television M1.

Until alternatives are developed, he reiterated that Hungary would remain highly dependent on Russian oil and gas.

Diversification of energy sources and the expansion of choice for resource

acquisitions have been ongoing goals for Hungary since the end of communism, Gulyás said. Once the Greek-Bulgarian interconnector is finally completed, currently scheduled for the end of next year, gas imports from Azerbaijan could also be possible, Gulyás said. The head of the PMO was also firmly against the idea of extending sanctions to Russian gas imports.

Orbán continued stressing the need to finance peace rather than proceed with more sanctions in a video message posted on Facebook on June 23, during a two-day summit of European Union leaders in Brussels.

“More and more ideas for sanctions [against Russia] are being brought up, and proposed sanctions are being tabled, even though the sanctions, in addition to the war, are the reason for the economic problems,” Orbán said. “We don’t need more sanctions; we need peace because peace is the only remedy for wartime inflation.”

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Summer Work, Pensioner Jobs, Disappearing Teachers and a Lack of Innovation

12 years,

half of the teachers will retire, and there is no resupply in sight, mainly because of the low wages.

After finishing school administrative work, many teachers search for temporary jobs until September to compensate for their low wages, the union says. Working in discount retail chains, some earn more in their part-time jobs than they do as full-time teachers.

The problem is also seen in the decreasing numbers of students applying for pedagogical studies. In 2019, they totaled 17,400, compared to just 11,978 this year. Less than half of those admitted graduate, and many of those who do leave teaching shortly afterward.

According to the union, 8,000 teachers will retire within five years, and there will not be enough young career starters to replace them.

The aging of the Hungarian population is already a heavy burden for pension financing, and it will only worsen.

Also, the economy is struggling with a labor shortage; therefore, the system encourages men and women to keep working, even after retirement age.

A monthly look at health issues in Hungary and the region

only

5%

Some pensioners feel pressured by rising inflation to return to work. Photo by ALPA PROD / Shutterstock.com

Life Expectancy

Summer has kicked in, not only with extreme temperatures but with school holidays too. A well-deserved rest for the children but often a difficult period for teachers.

A roundtable held by the Teachers’ Union revealed that about 16,000 professionals are missing from public education in Hungary, a situation that has not arisen since World War II. Moreover, the average age of pedagogues is now 53, meaning that in

HR Matters

few new businesses are technologyintensive, that is, producing added value.

Hungary’s early-stage companies often offer services like hairdressing, manicure, or massages. As for companies already established on the market,

The government faces budgetary holes while workplace vacancies continue to rise.

Employees, already burdened with inflation, are reluctant to ask for a pay raise.

Instead, they may choose to leave their employers.

BALÁZS BARABÁS

News | 5

But their working abilities are, naturally, worse than in their younger years, Mihály Karácsony, the president of a pensioner association, says. He points to Eurostat statistics showing that the healthy life expectancy for Hungarian boys is now 61.6 years and 63.5 years for girls. This means that more than onethird of Hungarian men, 38% die before retirement age. Those who do not are in poor health. The solution would be a flexible retirement, Karácsony says.

For those already retired, life is not easy either. One million are living on a pension of HUF 120,000 a month, continuously eroded by inflation. Any raise in the state pensions is unlikely to compensate for a 30% rise in food prices; therefore, some kind of allowance, such as food coupons, will be needed soon, Karácsony suggests.

However, there is little chance that pedagogues or pensioners will get a rise in the near future. The state budget lacks resources so much that, back in May, the government halted all investments and announced significant layoffs in the public administration, aiming to save HUF 30 billion.

The total headcount in the public administration

is

37,000.

According to information released by leftleaning daily newspaper Népszava, layoffs will target not the central administration but rather offices in rural areas.

As for the private sector, research conducted by Big Four consultancy PwC indicated that two-thirds of Hungarian employees are unhappy with their work.

The international study, conducted in 44 countries, revealed that this is an extremely high rate, compared to 71% worldwide satisfied with their employment.

However, only 16% of Hungarian employees plan to leave their current job within one year. This confirms the very high rate of immobility, which has been characteristic of the Hungarian labor market for 30 years. According to HR experts, one of the reasons is that Hungarian employees are uncomfortable competing in the labor market; therefore, they prefer to stay in their current jobs, even if they are frustrated.

Frustrated Workers

The cause of frustration seems to be the perceived low wages. An overwhelming majority, 86%, responded that a higher salary is the most crucial driver in looking for a new job. Interestingly, only 27% said that they plan to ask for a raise within a year, which means that for some reason, employees prefer to quit rather than communicate with their employers.

One reason for quitting may be to become their own boss. The Global Entrepreneurship Monitor (GEM), partnered in Hungary with the Economic University of Budapest (BGE), showed that more than 10% of the adult population in Hungary plans to start a business or at least become selfemployed in the next three years.

Surprisingly, the typical startuppers are not the youngest adults but in the 25-44 age range. This is probably related to another finding: a majority think they lack the knowledge and competencies for starting a business. Those who do take the plunge tend to be slightly higher educated than the average population, but in itself, this is not a catalyst for becoming an entrepreneur.

The percentage of women graduates among entrepreneurs is higher (36.2% compared to 30.2% in the total population), but women overall are less likely to start their own businesses. Nevertheless, very

have a profile that can be regarded as innovative.

The government already views the issue as one of the most pressing challenges it faces. Minister of Culture and Innovation János Csák recently quoted European statistics, noting that Hungary is in the bottom quarter of EU member states in terms of added value businesses. An improvement requires more researchers, higher spending on R&D relative to GDP, and a “growth of innovative culture.”

Also, businesses and employees need to be “innovative, flexible and cooperative” to ensure competitiveness in a fast-changing international environment, the minister said.

The Most Influential HR Managers in Hungary Hungarian site hrportal.hu has narrowed a list of 100 HR managers to 20. Their companies are not necessarily the largest employers; hrportal.hu rather focused on the skills of those selected. The final list is: • Klára András, Egis Gyógyszergyár • László Bajor, Flex • Dávid Bauer, MOL • Imre Bertalan, OTP • Gertrúd Csoknyainé Horváth, dm • Katalin Erdei, Richter Gedeon • Benedek Fluck, MVM Csoport • Balázs Fremda, Morgan Stanley • Zsuzsanna Friedl, Magyar Telekom • Ákos Kalmár, Continental Csoport • Kinga Németh, Audi Hungaria • Ildikó Ráczné Szőke, European Central Bank • Csilla Simon, Magyar Posta • András Somogyi, Bosch Csoport • Zoltán Széni, Epam • Barbara Szigeti, Tesco-Global Áruházak • Ildikó Szijjné Kállai, SPAR Magyarország • László Szőcs, bp • Csaba Tóth, Lego • Zsuzsanna Tóth, Vodafone Magyarország

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Szervita Square wins World Gold FABCI Prix d’Excellence Awards The Szervita Square Building by Horizon Development has won two World Gold FABCI Prix d’Excellence Awards.

The international titles for Best MixedUse Development and Best Sustainable Development were presented at a gala at the Lida de Paris. In total, five Hungarian developers won awards, the highest number of winners for the country to date at the annual event.

GARY J. MORRELL

FIABCI is active in 60 countries and hands out annual prizes in recognition of the best property developers worldwide. The 12,500 sqm Szervita Square Building has received LEED “Platinum” environmental rating, making it the first such certified mixeduse property in CEE, according to Horizon Development.

The complex is a rare high-end office development in the historical center of Budapest with additional ADVERTISEMENT

I think that, in the future, we will more and more need well-designed, sustainable office buildings in the city center. In this way, such projects are sustainable, tenants can use public transport, and they are surrounded by most of the necessary services. So, it is an important factor to have quality office buildings in the center of Budapest,” he added.

BudaPart by Property Market, a multi-phased project which will eventually consist of 13 office and

15

residential

buildings in addition to commercial units on the southern Buda bank of the Danube, based on the concept of the development of a new city quarter designed by the Danish architects ADEPT Studion, won the Urban Development Gold Award.

retail and residential space. Germany’s Union Investment has purchased the building for what is described as a benchmark yield for the Hungarian office market.

“We are re-entering the Hungarian property investment market with the current purchase of the Szervita Square Building. This is an exceptional technical and aesthetic quality downtown Budapest asset with a diverse tenant mix,” said the leading European investor.

The Hungarian architect Antal Fekete penned the central concept in conjunction with Horizon Development, and the DVM group undertook the interior design.

“The Szervita Square Building has a special place in our hearts because it is definitely one of our best projects architectural-wise, fit-out-wise, and business-wise,” said Máté Bihari, leasing and sales director at Horizon Development.

“Most importantly, it is the last project which involved our founder, Attila Kovács. The project can

be remembered for his philosophy, and this will always be a special part of our portfolio,” he noted.

Characteristic Reflection

“From an architectural perspective, the building is located in the middle of the heritage part of the city center; it is a building with its own characteristics but also strives to be a reflection of the surrounding area. It is a very beautiful building but also humble with regard to the surroundings. This was one of the most important elements when we developed the glass façade and the structure of the project, on the award,” Bihari explained.

“Everybody would like to move into the city center, and we still have daily inquiries from companies who would like to occupy Szervita Square. Therefore, there is a need that we have fulfilled with the project.

“The Szervita Square Building has a special place in our hearts because it is definitely one of our best projects architectural-wise, fit-outwise, and business-wise. Most importantly, it is the last project which involved our founder, Attila Kovács. The project can be remembered for his philosophy, and this will always be a special part of our portfolio.”

Atenor won silver in the Office Development Award for the BREEAM “Excellent” certified 130,000 sqm Váci Greens building, designed by the Hungarian Tiba Architects Studio. The Millenáris Széllkapu (Gate of Winds) Park, designed by leading Hungarian engineering company TSPC (Technical Supervision and Planning Consulting) Hungary Kft. was awarded gold in the Public Infrastructure category. Star Fortress of Komárom won the National Heritage Protection Award.

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News | 7

CIB Italia Football Camp Returns to Budapest With Del Piero After two years of inactivity due to the pandemic, the CIB Italia Football Camp resumed in Budapest with the support of the Generali a Biztonságért Alapítvány (Generali for Safety Foundation).

This year, students from schools in disadvantaged municipalities took part in training sessions run by Italian coaches. The star guest was Alessandro Del Piero, a legend of Juventus and the Italian national team.

From left: Gábor Balogh (Hungarian Association of Student Sports), Pál Simák (CIB Bank), Marco Elio Rottigni (Intesa Sanpaolo Group), Alessandro Del Piero, and Colocci Gianluca (Generali CEE Holding).

700th appearance in 2012. He won six league titles with Juventus, the Italian Cup in 1995, and the Champions League in 1996. Del Piero was a member of the national team that defeated France 5:3 on penalties in the 2006 FIFA World Cup final, hosted by Germany.

Italian Trip GERGELY HERPAI

For the fourth time (but the first in two years), the CIB Italia Football Camp was held in Budapest from June 20-24, where around 120 footballers aged 10-14 could test their skills and learn top soccer training methods.

The participating children, drawn from within a

70radius km

of the capital, were selected with the help of the Hungarian Diáksport Szövetség (Student Sports Federation). A new feature of this year’s camp is that it was attended by pupils from schools in municipalities where children’s access to sport is limited.

“I am in Budapest today because, together with CIB Bank, we believe strongly in the value of sport. The young players who participate in the CIB Italia Football Camp will have the opportunity to train with the best Italian coaches,” said Italian FIFA World Cup winner Alessandro Del Piero. “If we discover children with special talents during the camp, we will follow them up, allowing them to show their skills in Italy.”

Del Piero, a 91-time international, spent most of his professional soccer career with Juventus FC, where he played from 1993 until 2012. He was in a total of 513 league matches for the club, scoring 208 goals and making his

Thanks to the support of CIB Bank and its Italian parent bank, Intesa Sanpaolo Group, along with the insurer Generali, the three most-talented participants of the program, free of charge for children, will be invited to a football camp in Italy, where they will continue training with the other winners from abroad. The three youngsters will be accompanied by their families. Among other things, the selected winners will play training matches, visit a soccer museum and watch a top league Serie A match.

“With this initiative, we wanted to give an opportunity to talented young players who might not necessarily be able to participate in such a highly professional training program,” explained Pál Simák, CEO of CIB Bank Zrt. “The camp is an unrivaled experience and a chance for young footballers to develop their skills, giving them an insight into the world of international football. The camp is completely free of charge for the participating children, precisely so that financial reasons should not be an obstacle,” he stressed.

Marco Elio Rottigni, head of the international subsidiaries of the Intesa Sanpaolo Group, noted, “This initiative confirms Intesa Sanpaolo’s commitment to Hungary as a prosperous business environment and to Hungarian society as a whole.”

He said the group recently confirmed it will invest around EUR 115 billion in communities and the green transition in 2022-2025

and EUR 500 million to support needy people. “Our commitment is strong to all local markets where we are present.”

Soccer Stars

Since the initiative’s launch, the CIB Italia Football Camp has brought selected Italian football stars, including former world champions, to Hungary.

Two years ago, it was Franco Baresi, one of the world’s best defenders. The Italian men’s national soccer team has won four World Cups, and Serie A is considered one of the world’s strongest leagues.

This year, Generali joined the initiative as a sponsor and co-organizer.

“I am in Budapest today because, together with CIB Bank, we believe strongly in the value of sport. The young players who participate in the CIB Italia Football Camp will have the opportunity to train with the best Italian coaches.

If we discover children with special talents during the camp, we will follow them up, allowing them to show their skills in Italy.”

Speaking about the camp, Gianluca Colocci, development director of Generali CEE Holding, highlighted the shared values.

“By supporting this football camp, Generali is further strengthening its commitment to initiatives promoting

a culture of solidarity and inclusion.

We are proud to support local communities by unlocking the potential of people through the programs run by our foundation.

This support is also important to our partnership with Intesa Sanpaolo Group in Hungary [through] CIB Bank.”

Gergely Horváth, a member of the board of trustees of the Generali for Safety Foundation, added, “Our comprehensive and constantly expanding programs, which cover many aspects of life, give priority to the future generation because we want every child to develop their potential in the environment in which they live.

With our support, young Hungarian footballers from disadvantaged settlements will be able to showcase and develop their skills at the football camp this year,” he said.

The foundation was established to achieve social goals that create opportunities for children and young people to develop healthy physically and mentally.

Speaking about the children selected for the CIB Italia Football Camp, Gábor Balogh, President of the Hungarian Association of Student Sports, said, “In the selection process, we focus on equal opportunities and social aspects in addition to talent management.”

Marco Schembri, head of World Camp International Srl, the organizer of the football camp, added: “I would like to thank CIB Bank for making it possible for the fourth time for young Hungarian footballers to develop their talents while enjoying unforgettable experiences. Although we speak different languages, football brings us all together wherever we live in the world.”

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Budapest Business Journal | July 1 – July 14, 2022

Business

Magyar Suzuki Hopes to Increase Auto Production Significantly

Magyar Suzuki finished last year behind its financial plan but managed to increase overall and domestic sales. This year, it plans to invest hundreds of millions of forints, including building a solar park, the company said at a press conference announcing its results.

GERGELY HERPAI

The global shortage of chips and the difficulties in shipping containers by the sea in the first half of 2021 did not help the Esztergom-based auto manufacturer: the total number of cars produced was 4% below the planned figure. Several shutdowns were enforced, with the shift pattern cut from two to one and only restored at the end of the year.

Despite this, 107,974 vehicles rolled off the production lines in 2021, sales volume reached 120,164 units, and there could be no complaints about sales revenue either, as total sales reached EUR 1.754 billion, of which the Hungarian market generated EUR 264.9 million, Magyar Suzuki Zrt. revealed.

Indeed, total revenue was 6% higher than in 2020, the company’s balance sheet profit

was

EUR 48.9 mln,

and profit doubled. However, as has been the tradition at the Hungarian unit of the Japanese automaker, no dividends were paid. Instead, the profit will be used for new investments,

Although the CEO recalled the company’s philosophy of providing value-for-money vehicles to help customers with mobility at the beginning of the briefing, Krisztián qualified this slightly in response to another journalist’s question. Due to rising costs in the sector (domestic prices are also strongly influenced by the forint exchange rate), Magyar Suzuki will be forced to revise its prices several times this year, especially if the euro exchange rate rises above 400 forints.

Indian Guest Workers

Alongside the operational risks already having a substantial impact last year, this year has seen inflation, labor shortages and staff turnover. This is partly being addressed by a pilot program to hire Indian guest workers for two years, and the ramp-up in production will also see a return of more intensive temporary staffing.

“It is unlikely that we will be able to satisfy customer demand this year fully.”

Masato Atsumi, CEO of Magyar Suzuki. mainly in production and operational processes toward carbon neutrality.

Last year, EUR 92.9 mln of the profit was spent on new investments, a new emissions lab, paint plant modernization, and model development, with around EUR 100 mln planned for 2022, according to Suzuki.

Masato Atsumi, Magyar Suzuki’s CEO, who was appointed a year ago, said that among the main achievements of the past year were the launch of the SX4 S-Cross in October and the start of production of the latest Vitara model with a powerful hybrid system, including a 48-volt electric motor, in November. From the second half of this year, the S-Cross will also be equipped with this powertrain.

Local Autonomy

Atsumi stressed that the travel restrictions of the pandemic meant that the expertise of the local staff played a significant role in the results, with the parent company giving it a great deal of autonomy in production technology development.

Suzuki in Japan increasingly relies on specialists from the Esztergom plant, the third-largest production unit in the group, for more business areas.

The entire European market has been supplied with components from Hungary for some time now, but the European IT service center is also located here.

“We were the leader in the Hungarian market for the sixth year in a row,

with 17,650 new cars sold, giving us a market share of 14.48%,” said Róbert Krisztián, the operational director responsible for sales and marketing.

This exceeds the 2020 sales of

14,783 units.

The vast majority of this, 56%, went to corporate and institutional customers and fleet partners.

The most popular new car model in Hungary was again the Vitara, of which 8,350 were sold domestically, and the second most popular was the S-Cross, with 6,261 units sold. The production plan for 2022 is to assemble 147,000 cars, but whether this can be achieved will depend on overcoming semiconductor shortages, the COVID restrictions in the Shanghai region, and the business difficulties caused by the Russo-Ukrainian war.

While domestic delivery times for Esztergom-built models are currently averaging three to four months for dealerships, and they cannot plan production any earlier, customers can expect a longer waiting list of five to six months for imported Suzuki models.

“It is unlikely that we will be able to satisfy customer demand this year fully,” admitted Krisztián in response to a journalist’s question. For that reason, no domestic promotion program is planned.

In any case, domestic sales cannot be boosted at the expense of exports at the moment because of the fluctuating demands of the European market.

Currently, the company has 2,638 active employees, which it is trying to retain, among other things, through an average salary increase of 12% retroactive to the beginning of the year and a rethought performance-related bonus scheme.

Ildikó Fejesné Gyurján, chief operating officer for HR, finance, and IT, stressed that more than half of the employees have been with the company for at least 15 years but that the company will continue to pay close attention to retaining its workforce and to a career model that is attractive to young people and offers competitive salaries.

Suzuki plans to launch its all-electric models

after

2025,

and the group hopes to increase its share globally significantly from 2030.

“We are working on producing electric models in Esztergom sooner or later,” Krisztián told the Budapest Business Journal.

By 2050, the global goal is to have a fully carbon-neutral plant and product portfolio. In the meantime, the main focus will be on reducing the carbon footprint of manufacturing and business processes. The group will spend EUR 8 bln on research and development, including the development of hybrid and electric models, by 2025. This year, for example, emissions at the Esztergom plant will be reduced by setting up a solar park.

Atsumi confirmed in response to a question that an investigation had indeed been launched into the emissions of older Suzuki diesel models and that the company would cooperate fully with the authorities. He stated that the company had no information on the current status of the investigation.

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Budapest Business Journal | July 1 – July 14, 2022

Winners of This Year’s Vodafone Digital Awards Announced This year’s winners of the annual Vodafone Hungary Foundation digital awards are a hand device, an app for planning EV journeys, digital teleradiography software, and a video call button for the elderly. This year a total of 118 applications were received for three categories (Digital Society, Inclusion for All, and Environmental Protection and Sustainability) and a special award.

GERGELY HERPAI

“We believe that we can use technology and digitalization to create a more liveable tomorrow,” said Amanda Nelson, CEO of Vodafone Hungary.

“Every year, thanks to the Vodafone Digital Award, we have the opportunity to support projects that we believe can benefit humanity. The number and quality of this year’s applications not only confirmed what I have known for years, namely that Hungary is full of great innovators, but also that by working together and supporting each other, we can indeed find answers to the most pressing questions of our time,” she added.

The presentation event was held on June 23 and attended by Deputy State Secretary Károly Balázs Solymár of the Ministry of Technology and Industry, among others.

“The Vodafone Digital Award is an exemplary and unique initiative in Hungary, which creates an excellent opportunity to take action for our future through technological developments,” he told audience members.

“The government is working with its corporate partners to ensure that no Hungarian idea that could become a marketable product or a service that improves the quality of life is left on the shelf. This year’s round of competition has confirmed our belief that Hungary

Business | 9

disadvantaged groups catch up.

The winner was Kontekt, a TV screen-connectable device for older people who are reluctant to use smart devices, facilitating video calls with loved ones at the touch of a physical button.

Mentoring Team

has an almost inexhaustible supply of knowledge-based development plans,” the deputy state secretary said.

“We will do our best to put this great resource into practice for the benefit of our children and grandchildren,” Solymár promised.

He added that challenges such as the war in Ukraine and the disruption of supply chains must now be addressed.

But he added that the answers could not be business as usual; creative and innovative solutions are demanded.

Three Categories

The three categories of this year’s competition, Digital Society, Inclusion for All, and Environmental Protection and Sustainability, reflect the most critical problems and challenges affecting our society and environment.

The Vodafone Foundation competition was open to anyone who could respond to the above topics with a project that is already in operation but needs to be further developed or with a digital solution that is about to be implemented.

The Digital Society category was open to innovative digital solutions that benefit a social group. The winner was the Ceph Assistant digital teleradiography software for detecting dental anomalies.

The Environment and Sustainability category was open to digitally innovative green solutions contributing to a climate-neutral ecosystem. Volteum, which uses its algorithms to calculate the daily energy demand of electric vehicles, plan the best and optimize charging cycles, was the winner.

The Digital Equality category called for innovative digital solutions to help

The event also has a unique innovation prize, with the winning applicant receiving professional support from Vodafone Hungary’s mentoring team, who will assist in the implementation and further development of the project for six months.

The social and professional jury unanimously voted the HandExo personalized, 3-D printed hand orthosis as the winner of the 2022 Special Incubation Award. The device can be operated remotely via an app, helping patients who have suffered a stroke or some other injury to the hand or nervous system, move their fingers independently and actively during developmental exercises.

“As a jury member, I was extremely excited about the selection process, as the shortlisted projects were very promising. It was a great pleasure for me to see that more and more people are interested in the digitalization of healthcare. We have also seen solutions aimed at the digital development of agriculture and its renewal,” said Anita Orbán, deputy CEO of Vodafone Hungary, responsible for corporate relations, and a member of the board of trustees of the Vodafone Hungary Foundation.

According to a statement issued

by Vodafone, the Special Incubation Award was first launched by the Vodafone Hungary Foundation in 2018 to recognize innovators who provide practical help for everyday life challenges by supporting digitalization and, at the same time, serving the social good. This year 118 applications were received, 40% from individuals and 60% from organizations.

10 | 2

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Budapest Business Journal | July 1 – July 14, 2022

E-retailer to Build 1 of Hungary’s Largest Automated Logistics Centers Retailer eMAGExtreme Digital will soon serve its customers from a near-117,000 square meters automated logistics center.

The HUF 35 billion warehouse, being built in Dunaharaszti on the southern outskirts of Budapest, is scheduled to start operations as early as this year’s Christmas season. The Hungarian Investment Promotion Agency is financially supporting the investment.

BBJ STAFF

E-commerce in Hungary has continued its rapid growth in the last two years: in 2021, the sector was driven by a turnover of HUF 1.203 trillion, generated by nearly 70 million domestic orders, bringing stable growth of over 30%, according to the GKI Digital Online Retail Index.

The business argues that establishing a vast, ultra-modern logistics center in Hungary will ensure efficient operations for eMAG-Extreme Digital in the coming years. The development is justified by the

a high degree of automation, which will further speed up the processing of orders. The warehouse is integral to the group’s long-term strategy to invest the equivalent of HUF 255 bln in regional expansion, technology, and infrastructure.

“The e-commerce sector in Hungary has developed significantly in recent years: the expectations of Hungarian customers are also getting higher; they don’t want to wait days for a product to arrive. They want faster and more convenient pick-up,” said eMAGExtreme Digital CEO Balázs Várkonyi.

“Since the beginning of May, we have been offering our entire portfolio of services and products on the eMAG. hu platform, which has allowed us to focus more on technical and logistical improvements. We are building a larger warehouse base than ever before to provide our customers with a more efficient, faster, and higher quality service,” he explained.

“The new warehouse base will not only speed up the processing of eMAGExtreme Digital’s orders but also those received by more than 6,000 businesses in Hungary and the region that offer Minister of Foreign Affairs and Trade Péter Szijjártó (center left) and their products and services to Hungarian Balázs Várkonyi, CEO of eMAG-Extreme Digital (center right), plant customers on the eMAG Marketplace. the first of 150 trees at the site of the new logistics warehouse. Our investment will also help Hungarian small businesses to become professional online merchants and remain competitive rapidly growing range of products, it says; in non-refundable support to eMAGagainst foreign online giants expanding the eMAG.hu webshop now offers almost Extreme Digital for the establishment of in our region,” Várkonyi added. four million different products, from the warehouse base in Dunaharaszti, as it The e-retailer says it is important to washing-up capsules to electric scooters. is a major advantage for Hungary that this operate as sustainably as possible. In The e-commerce sector, perhaps logistics center serving six countries can addition to recycling packaging and the most visible segment of the digital be established in Hungary,” said Minister rolls at the warehouse, the company is economy, is also of national economic of Foreign Affairs and Trade Péter Szijjártó, continuously expanding its Easybox importance. That is acknowledged by the who visited the site for the announcement. network of parcel pick-up machines, fact that the warehouse is being built with “This is another indication that the logistics which it says is the most environmentally the support of HIPA, alongside the HUF sector has now become a flagship of the friendly delivery option.

30 bln of its own money eMAG-Extreme Hungarian economy.”

As part of the company’s commitment Digital is plowing into the investment.

Given the large footprint of the to sustainability, 150 trees will be In addition to further strengthening Dunaharaszti facility, automated solutions planted near the Dunaharaszti base, the role of the company and its will be essential to its operation. Products the first of which was planted jointly by thousands of Hungarian retail partners will be shipped not only to Hungary Szijjártó and Várkonyi. in the Hungarian e-commerce market, but also to six other markets: Austria, The new warehouse will be the the investment will also create jobs: Croatia, the Czech Republic, Germany, Romania-based eMAG Group’s eMAG-Extreme Digital will employ Slovakia and Slovenia. first self-financed logistics center around 350 people in the first year, but established in a foreign country.

High Degree of Automation Construction of the facility has already the company expects the number of In addition to the construction of the logistics staff working here to grow to started, and the general contractor for logistics center, eMAG-Extreme Digital 600 within four years. the project is Baupartner Construct, is investing more than HUF 5 bln in “The Hungarian Investment Promotion which has built several similar purchasing logistics equipment offering Agency will provide HUF 4.8 billion warehouses for the group in Romania.

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Business

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Budapest Business Journal | July 1 – July 14, 2022

AI is Already Here: People, Businesses Must Learn to use It In 2022, the question for the C-Suite is no longer whether it should use artificial intelligence to compete successfully but how to do so well.

How do you find an AI-augmented enterprise strategy and bulletproof results with a clear return on investment that is made future-proof by being built responsibly? These and other AI questions were discussed at a Dutcham event.

GERGELY HERPAI

Artificial intelligence is profoundly and speedily transforming enterprises, industries and the economy. According to the majority of the executives, AI is now mainstream, representing a fundamental shift. C-suiters also think that the accelerating impact of the pandemic is apparent here. AI adoption is at a turning point: most companies have already engaged with AI in at least one strategic business function.

At the same time, AI is the firstever “moral technology” that needs us to become better humans to be able to control it. The human factor should be the starting point in embracing AI technologies at any corporation. With human-centric, responsible AI adoption strategies, companies can build longterm capabilities and avoid the moral obstacles in talent, revenue and reputation risks.

“Augmented leadership successfully combines the best of the digital age with the best of the human mind, and all for the right purpose,” Erik Slooten, of T-Systems International, told the

From left, moderator Krisztina Bombera, George A.Tilesch and Erik Slooten engage with the audience. event, organized by the NetherlandsHungarian Chamber of Commerce (Dutcham), alongside the Business Council for Sustainable Development in Hungary and the Joint Venture Association.

Slooten, a Dutch national, is the global leader of delivery quality and transformation cloud service for the German multinational and was also the Budapest Business Journal’s Expat CEO of the Year 2021. He has a background in telecommunication and IT engineering for

24 years,

championing innovation and AI in internal programs and relationships with universities.

“AI is a liberating, strengthening technology, and if you, as a leader, don’t implement a strategy very consciously around it, to invest in a community inside your company, that liberates people and educates them on how to use it, how to help each other, how to develop ideas and how to make the company a better place; you’re missing the game,” Slooten told the audience. He added that not using AI as a company is the equivalent of not using cars.

Inescapable AI

Slooten also came up with another analogy. According to him, previously, nobody thought that using mobile phones would be the norm, “but here we are.” He thinks the situation is the same with AI: everybody needs to get used to it because it’s almost inescapable.

“AI surrounds everybody,” he said, adding that, even now, the AI in the smartphones were listening to what he said. “Even if you don’t have a phone, your neighbor has one.”

Slooten remarked of his workplace that every department of Deutsche Telekom educates itself about the concept of and necessity for AI. The other speaker at the Augmented Leadership discussion, George A.Tilesch, president of the PHI Institute for Augmented Intelligence, emphasized potential biases in his speech. According to him, AI will be the driving force behind several leading technologies in the near future. It will also exponentially grow and directly affect our personal and business life.

“AI is a liberating, strengthening technology, and if you, as a leader, don’t implement a strategy very consciously around it, to invest in a community inside your company, that liberates people and educates them on how to use it, how to help each other, how to develop ideas and how to make the company a better place; you’re missing the game.”

“Developers started sharing their fears about controlling these developments and the potential threat they can mean for humanity, but AI is the path we are on towards machines that can learn,” Tilesch said.

He emphasized that the capabilities of very robust AI systems and intelligent software are accumulating vast data and making decisions that already influence our lives; we are at a tipping point today. Tilesch highlighted the responsibility of governments to be transparent regarding the AI solutions they use and provide for their citizens.

Nuclear Analogy

After the two keynote speeches, event host journalist Krisztina Bombera talked with Tilesch and Slooten about different perspectives on AI. The main question of the conversation was how to use AI well in the future.

“Why is the analogy with the nuclear bomb not applicable to AI? What’s the difference?” asked Bombera. Tilesch said that if we let AI make moral decisions, that is the fault of the person who made it happen. We need to control it continuously and personally.

Slooten added that AI cares more about people than governments do.

He thinks that AI is more fact-based and less illogical. He finds AI more objective in checking facts and doing research. He is not convinced that AI as a technology has “evil” thoughts or, indeed, any kind of personal side.

“AI is more neutral than most people,” Slooten said.

“Still, how can we control AI, or do we need to control it at all?” asked Bombera.

Slooten thinks that you can’t and shouldn’t as an individual seek to control AI because you can’t. “But how do we develop sustainable AI?” asked someone from the audience.

“Since there is no moral code in AI at the moment, this is probably the million dollars question,” Slooten and Tilesch concluded.

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Budapest Business Journal | July 1 – July 14, 2022

The Corporate Finance Column Image by Yuriy K / Shutterstock.com

Is the U.S. Fed Playing With the Wrong Levers?

Many economists believe that the U.S. Federal Reserve has a pretty abysmal track record in forecasting inflation during recent years.

Could the Budapest Business Journal’s corporate finances columnist, Les Nemethy, be among them?

First, the Fed deliberately changed policy to allow inflation to run hot at higher than 2%, saying that a certain amount of inflation would be desirable, not a threat.

Then, when inflation ran hotter than expected, the Fed stated that inflation was merely “transitory.” Next, the Fed started monetary tightening too late.

United States Secretary of the Treasury (and former Fed chair) Janet Yellen recently acknowledged the error.

I was amazed that at the recent Federal Open Markets Committee (FOMC) meeting of the U.S. Fed, where inflationfighting dominated the agenda, there was no mention that the U.S. money supply had increased by 50% over the past two years.

One Twitter commentator even questioned whether silence on this issue at the subsequent Q&A demonstrated unbelievable incompetence on the part of renowned journalists or an environment where dissent is not allowed.

This column examines why interest rates alone are unlikely to tame inflation and whether money supply may influence inflation.

Increasing interest rates certainly have the effect of reducing demand. Ironically, precisely in the type of high debt

environment we have today, the demand reduction effects of raising interest rates may be more dramatic than in a low debt environment because governments, corporations, and individuals must spend more on servicing their debt, leaving less for consumption and investment, depriving economies of their oxygen.

But slowing demand is not the same as slowing inflation. That’s what the whole concept of stagflation is about.

The Fed might be well on the way to both recession and inflation.

As macro strategist Peter Schiff puts it: “It’s clear that investors are no longer worried about inflation, but are only worried about recession. In contrast, the Fed is only worried about inflation, but is not concerned about recession. Soon investors and the Fed will be on the same page. They’ll be petrified about both.”

The Fed was late to recognize that inflation was here to stay, hence began applying the brakes against a backdrop of already pronounced economic decline and a bear market. This has never happened before in the history of the Fed. Given that consumption, employment, and investment statistics are always reported with a lag, the rapid oxygen

Business | 13

deprivation effect of high-interest rates in a high debt environment may plunge us into recession before the Fed can take corrective action.

There are other aspects of inflation that interest rates cannot control.

Supply-side Factors

Energy prices are the main threat at present. There are many factors contributing to this, from the shuttering of nuclear capacity in Germany to the restriction of Russian oil and gas flows to the West. Germany has already declared it has reached stage two of its threestage energy emergency program. Many of the higher wholesale energy prices have not even been transmitted to the retail level. I recently heard from a Hungarian energy expert that retail gas prices in Hungary are expected to go up 400-600% over the next year. Clearly, the full effect of energy price increases is nowhere near baked into current inflation rates.

While wheat prices may have come down 20% from their recent peak, it remains very expensive, and global wheat stocks are at historic lows. The Fed can print money but cannot print oil, gas, wheat or other commodities.

This winter, we may see food or energy crises creating unprecedented inflationary pressure.

Psychological Factors

There is increasing evidence that people are coming to expect higher inflation, which gets translated into higher salary demands, etc., creating a spiral.

What about the importance of monetary policy on inflation? As Milton Friedman once famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it cannot occur without a more rapid increase in the quantity of money than in output.”

During the 2008 recession, the money supply increased, but most of this was sterilized at the level of the banks, avoiding inflation. Since COVID19, helicopter money and increased bank lending have put vastly more money into the hands of individuals and corporations, with inflationary effect.

Modern Monetary Policy (MMP) is a school of thought that says a central bank may print an infinite amount of its own currency without affecting inflation, so long as this additional money supply is absorbed by central bank bond purchases. Fed chair Jerome Powell has announced that he intends to reduce the Fed’s balance sheet (e.g., sell bonds) to the tune of more than USD 2 trillion at a time when there will be a need to finance at least an additional USD 2 tln of the federal deficit. Who will buy all these bonds, carrying large negative yields, if not the Fed? We are entering into the realm of voodoo economics. Markets have every right to be concerned.

Les Nemethy is CEO of Euro-Phoenix Financial Advisers Ltd. (www.europhoenix.com), a Central European corporate finance firm. He is a former World Banker, author of Business Exit Planning (www.businessexitplanningbook. com), and a previous president of the American Chamber of Commerce in Hungary.

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Country Focus United States

AmCham: COVID, War Highlight Need for More Open, Transparent, and Closer Cooperation Sometimes, even if we agree on an issue, the road to implementation is long and complicated, with plenty of obstacles.

AmCham President Zoltán Szabó talks with the Budapest Business Journal about the chamber’s latest Cooperation for a More Competitive and Sustainable Hungary publication, which identifies recommendations for the government to improve the Hungarian economy.

ROBIN MARSHALL

BBJ: What are the key takeaways of this year’s Cooperation document?

Zoltán Szabó: With the Cooperation for a More Competitive and Sustainable Hungary recommendation package for 2022-23, AmCham aims to improve the long-term performance of our economy on three levels.

Firstly, the general business climate, by supporting the creation of a stable and transparent regulatory environment and a competitive tax system. The windfall tax certainly does not help achieve the latter goal. Even though we understand the need for extra income, there is no strong case for it, so it should be phased out.

Two, we want to help build a highlyskilled, competitive, and healthy labor force in the required numbers through labor code amendments and a wide-scale education and training reform: this has been priority number one for businesses for a long time.

Finally, we want to set the foundations of our future success; we want to step on the path of smart growth by helping foster innovation and R&D, advance digitalization, and promote sustainability as an overarching economic policy.

This is a mighty task, especially in the challenging times in which we live. The last two years, with the pandemic and the war, have highlighted the need for a more open, transparent, and closer cooperation between the business sector and government for more effective strategic decisions in economic matters. We also

Zoltán Szabó, President of AmCham. urge the government to invest significantly more in developing the country’s human resources, mainly healthcare and education. It is simply the most significant investment opportunity for our country’s long-term success and competitiveness.

BBJ: Does it differ from previous recommendation packages regarding methodology or approach?

ZSz: From the start, we wanted a more transparent process with deeper involvement for our members. In the early stage, we launched a survey among our members to gain a better understanding of their concerns and priorities, considering the challenges and uncertainties of the last two years, and to learn more about their ideas to improve the Hungarian business climate and how we can cooperate with decision-makers more effectively. The survey gave us a great starting point; from then on, we held more frequent and extensive consultations with our members and the committees to expand proposals and validate ideas. This has been our most cooperative effort to date.

BBJ: Presumably, this package builds on its predecessors and shares elements of continuity with them. Are there any recommendations appearing for the first time, and if so, why?

ZSz: Sustainability has become one of the most critical objectives for our

members in recent years, and this year’s package reflects this rising priority. We are looking into energy diversification and security, sustainable mobility, financing, and infrastructure in-depth in the document.

Also, with the pandemic and the war in Ukraine, new and unique employment situations have emerged, which must be addressed, so we have proposals on remote working, flexible working hours, and the employment of third-country nationals, especially non-EU. Healthcare is another pressing matter for our members. The quality of healthcare directly impacts our workforce and thus our competitiveness. We saw how the pandemic shook the entire system; it is time to prioritize the improvement of the health of the population as a matter of strategic interest.

BBJ: What percentage of previous recommendations have been taken up by past governments, and what are your expectations this year?

ZSz: Our goal is to bring issues to the table, offer direction and insight from the leaders and experts within our membership, and support decisionmaking if possible. Healthcare reform, education reform, changes of this magnitude require a lot of time, immense resources, and support from several stakeholders at various levels.

BBJ: The 2022-2026 government has seven ministries that touch on some point or other of interest for business. Is that welcome attention, or does it just confuse matters? Do you have a single point of contact for the government or one for each ministry?

ZSz: We have well-established professional relationships with several ministries, including Foreign Affairs and Trade, Finance, Technology and Industry, and Justice, and we are hoping to build on this solid foundation. Of course, we have already approached the new ministries to start a dialogue (the recommendation package is a helpful tool for that), and we would like to have some new ministers address the membership at one of our forums this fall, too. The transitionary period after an election is always challenging with all the personnel changes, new structures, and institutions.

It takes time to set up shop and establish rapport with new policymakers.

BBJ: How long has it taken to prepare this package of recommendations?

Has that process become harder or easier over time?

ZSz: It took more than six months, timing the release after the election when the new government was set up.

We have a diverse membership with companies from all sizes and sectors, with varying interests and goals. It is not the most straightforward task to channel all that input into one document, but I believe we have managed to focus on the most critical issues impacting our members today. Now it is our job to draw the decision-makers’ attention to them.

BBJ: Do you expect direct government feedback on its content?

ZSz: We have already received encouraging feedback, with more expected. The AmCham Policy Team is working hard to line up meetings with several policymakers on minister and state secretary levels, where we can discuss the proposals in greater detail. On July 11, we will meet László Palkovics, Minister of Technology and Industry. We may not agree on all matters, but AmCham always strives to have an open, constructive relationship with the government since it is our common goal to make Hungary more competitive and a better country in which to live, work and invest.

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Budapest Business Journal | July 1 – July 14, 2022

PRESENTED CONTENT

U.S.-Hungarian Economic Relations: A Never-ending Success Story The United States is among the top three investor countries both in terms of foreign direct investment and the number of employees in Hungary. Given that this critical position has been permanent for decades, U.S.-Hungarian economic relations give the impression of a never-ending Hollywood success story.

3,000 patents

issued, and over half of these are in data and AI, cloud, networking, intelligent automation and security,” says Zoltán Zerényi, director of the Kyndryl Client Innovation Center Central Europe and MEA. “Kyndryl is partnering with the world’s biggest service companies to help customers in their mission-critical hybrid cloud, multi-cloud and edge computing data initiatives.”

Kyndryl’s bet on Hungarian talent is far from an isolated phenomenon among American firms. In fact, Hungary has

Focus | 15

Hungary is also home to a Citi technology development lab.

The Hungarian operation has been gaining in strategic importance; it is a complex site employing professionals in high value-added roles ranging from various fields in finance through IT development, information and cyber security to quantitative analysis, risk management and many more. And this evolution is very far from stalled.

Stronger Presence

“We are further looking to strengthen our presence through investments into value-added professions and digital and technology solutions,” notes Veronika Spanarova, Citi’s country head for Hungary. She adds that Citi is very much into harnessing the power of data to improve its services.

“The combination of efficient data insights with knowledge and experience in the field is key to success in our business and all other sectors,” she concludes.

Hungary’s positive appeal to American investors will remain undimmed, believes István Joó, who recently became CEO of HIPA. “The United States is one of Hungary’s key economic partners, and we have every reason to believe that interest on the part of American businesses in launching investment projects here will remain unbroken,” he says.

The figures from the recent past speak for themselves and imply long-term optimism and confidence on the part of U.S. investors who have frequently used HIPA’s consultancy services with a favorable outcome. Between 2014-2021,

BBJ STAFF

And despite the presently rather worrying global economic landscape, based on the data and experience of the Hungarian Investment Promotion Agency, everything points in the direction that the two countries will ride off into the sunset.

If the name Kyndryl doesn’t ring a bell, it is not your fault. Formerly part of IBM, Kyndryl became an independent company a little less than a year ago. What hasn’t changed is that we are talking about one of the world’s largest IT infrastructure service providers, whose clientele includes 75% of Fortune 100 businesses.

Out of Kyndryl’s 90,000 employees worldwide, more than 3,000 work at the Hungarian subsidiary celebrating 25 years of operation in the country this year. As another sign of its long-term commitment, nearly EUR 9 million was invested in 2021 to create 300 highvalue-added jobs in its Székesfehérvár office (60 km southwest of Budapest by road). The expansion was essential partly because the widespread use of cutting-edge tech solutions triggers ever more demand for quality IT support.

“We bring an unmatched intellectual heritage with more than

3

New HIPA CEO István Joó is confident U.S. investors can look forward to excellent new opportunities. been on the investment radar of U.S.based businesses from day one since the collapse of communism.

Impactful Investors

American businesses represent the third biggest foreign investor community, which was responsible for 7.9% of total FDI stock in 2019, according to the data of the National Bank of Hungary.

Furthermore, some 1,500 U.S.-owned companies employ close to 100,000 staff.

Their activity is reflected in the figures of HIPA as well, according to which year after year, from 2015 to 2021, the United States brought the second-highest number of projects to the country; in 2014, it topped the charts in this respect.

This year’s announcements are, therefore, just the latest pieces of evidence of American investors’ happiness with what they find in Hungary. Leading medical technology company Becton Dickinson (BD) is to invest USD 210 mln in Hungary, amounting to nearly one-fifth of its global development budget earmarked for the upcoming years. As a result, the production of prefilled glass syringes will be doubled in its Tatabánya plant.

HTEC, meanwhile, plans to hire 610 top IT professionals in four locations in the country to take its software development operation to the next level.

These examples also represent well the

sectors that attract the most American investments. According to HIPA’s statistics,

from

2014-2021,

the highest number of projects, 32, was taken by business services centers, followed by the ICT industry (14) and electronics (13).

Citi was among the early birds, landing in Hungary as early as 1985. Establishing its Citi Solutions Center Budapest in 2005 further increased its commitment to the country. The center is now one of Citi’s key sites in the EMEA region, supporting global operations in 20-plus highly specialized functions.

99

U.S-related deals

were closed by the agency, generating investments worth EUR 1.6 billion and creating more than 16,000 new jobs.

“Inflation, supply chain disruptions, raw material shortages as well as rising energy prices set a whole new backdrop to the global investment stage to which we must adapt,” Joó says. “We are facing challenging times where even more effort will be needed than before to attract FDI and lead projects to actual completion.

But I am confident that, thanks to our professional team and the support of the Hungarian government, we will be able to handle every issue, and foreign businesses, including American ones, will greatly benefit and can look forward to more promising investment opportunities.”

U.S.-Hungary in Numbers: The Tale of the Trade Tape

U.S.-Hungarian Bilateral Trade (2021) USD 7.1 bln, up 21% y.o.y.

U.S. imports to Hungary (2021) USD 3 bln, up 27% y.o.y.

U.S. Ranking Among Hungary’s Trade Partners in Terms of Volume:

11th

Hungarian exports to U.S. (2021) USD 4.1 bln, up 16% y.o.y.

HIPA Supported U.S. Investments (2014-2021):

99

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Focus

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Budapest Business Journal | July 1 – July 14, 2022

ExxonMobil Continues Investing in People in Hungary giving Hungarians experience abroad, and bringing them back for senior managerial roles, Kirschbaum and Kim agree that many of the factors are interrelated and, in fact, circular: being good in one of those areas helps in another.

The week of our interview coincided with the official opening of the new purpose-built Budapest HQ in the Pillar office building. The presumption is that staff will spend “the majority” of their time in the office.

With its recycled rainwater and recycled fishing net carpets, the office is an obvious statement of the U.S.-based firm’s engagement with Budapest. Even more important than building bricks and mortar, however, is developing all aspects of human resources. Growing partly from the COVID lockdowns, much more emphasis is placed on mental wellbeing, for example. Letting staff know, “It’s OK not to be OK,” as Kim says. There’s also a focus on providing equal opportunities for women and general development into leadership roles; inclusivity and engagement are the watchwords.

“I always recognized the importance of human connections. But I don’t think I fully internalized how important it is for people to feel seen and heard, and to be truly seen and heard,” Kirschbaum says.

A change in leadership always brings with it a degree of uncertainty.

U.S. energy giant ExxonMobil has sought to emphasize continuity at the leadership handover in its Hungarian operation.

ROBIN MARSHALL

The fact that the outgoing country manager, Jeroen Kirschbaum, will maintain some work connections with teams based in Budapest and that the new manager, Byung Kim, worked in Hungary for four years, 10 years ago, helps. The two have also been able to attend several events in person together, making the transition visibly clear.

By Kirschbaum’s own admission, the change in leadership has come quicker than he expected. Postings typically last three years, and he has completed two. Indeed, our first interview with him was in July 2020 (see “Dealing With Uncertainty, Investing in the Future” online). So, how much notice did he get?

“Not much. I guess the best opportunities often come somewhat unexpectedly, and this was no different.”

It was a similar story for Kim. “However, I didn’t have to think twice about accepting the job,” he says.

How did Kirschbaum process the sudden promotion? “I had very mixed emotions,” he admits. “I didn’t feel like I was done here. Since May 1, Byung and I have been talking. And now I feel, honestly, that I can leave things in really good hands,” he says.

“We spent a lot of time discussing why I felt I wasn’t done yet as part of the transition. We think very much alike; we lead very much alike. So, I have full trust in that continuity of what maybe I had as a vision, which was partially started by my predecessors here in Budapest; that will help with continuity in the organization.”

We’ll get Kim’s take on that in a moment, but first, we should understand what is taking Kirschbaum back across the Atlantic to ExxonMobil’s HQ in Houston.

Corporate Restructuring

“We’re restructuring as a corporation and have formed a new company called Product Solutions. That business combines our fuels and lubricants and all of our chemical businesses into one company, the largest independent petrochemical company in the world.”

Jeroen Kirschbaum (left) and Byung Kim. Product Solutions has roughly 30,000 employees. Kirschbaum will be the assistant controller, a new position.

“I’ll have controller oversight over our trading businesses, global marine and pipelines, merger and acquisitions, portfolio management, and ExxonMobil’s Product Solutions activities in the Americas in general,” he says. There is, as the Dutch national puts it, “a lot of exciting new parts of the business that I’m looking forward to.”

With a current headcount of around 2,000, ExxonMobil Hungary has more than 1,000 employees directly or indirectly supporting Product Solutions.

That includes roles linked to projects supporting the energy transition, such as biofuels (where ExxonMobil recently acquired a company in Norway that uses wood waste to produce biofuels), or advanced chemical recycling and sustainable aviation fuels.

“ExxonMobil has taken a position that we want to be a leader in the energy transition, and with that, the whole dynamic of the corporation has changed.

So, I’m excited to be part of that from a headquarters perspective, but also in knowing how big Budapest’s role is within Product Solutions.”

For Kim, the new business represents both change and continuity in action.

“One of the benefits of having a global

company that’s integrated like ours is you’re always connected. […] Today, we have interactions with the business, headquarters, and affiliates, and that’s not going to change. How things get run may change as the business evolves.

And that will be determined by how the market and society demand it evolves.

But the interaction really doesn’t change; I think it just grows,” Kim says.

“The integration of those companies makes us really efficient; it helps us meet some of those customer needs a lot more effectively. […] In terms of how we [Budapest] interact today, we’re constantly engaged,” he adds.

With migrations of around 100 new jobs to Hungary progressing in support of the Product Solutions business, finding new colleagues is high on Kim’s agenda.

“What we’re very happy about is that these are going to be higher complexity roles that require a higher skill set and experience. We’re really excited about the opportunity that brings to Budapest associated with the Product Solutions business.”

Circular Investments

On the various challenges surrounding human resources, be that finding people, retaining them, upskilling, providing clearly defined career paths,

“I always recognized the importance of human connections. But I don’t think I fully internalized how important it is for people to feel seen and heard, and to be truly seen and heard.”

Kim agrees. “This is the largest organization I’ve ever led, working 20 years at the company. And I think that sitting down with Jeroen has helped, and I can tell you that he dedicates a lot of time to make sure messages are clear and that the people receiving them will interpret them in the way he wants. That to me is key; when you say something, you need to be able to show and demonstrate that’s what you mean.”

It is time for final thoughts. How does Kirschbaum think he leaves ExxonMobil Hungary? “We’re seeing that we have broken the glass ceiling of the traditional shared services center. And I’m really proud of the organization that they were able to do that.”

The most significant change Kim sees since he last worked in Budapest is “how much the organization has matured. The talent has grown into being able to fill some of these more senior coordination, project management, and advisory roles that didn’t exist 10 years ago in the business services sector. I think the biggest thing when you’re leading a large organization is to invest in people.”

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Budapest Business Journal | July 1 – July 14, 2022

Special Report Tourism

Törley to Commemorate 140 Years of Bubbly in Budafok Hungary’s leading pezsgő producer hopes its celebrations will help visitors learn that Budapest has tourist attractions far beyond the popular central party district.

KESTER EDDY

Budafok, a full 11 kilometers southwest of central Budapest, is largely off the itineraries of tourists visiting the Hungarian capital.

True, from a distance, this moderately wealthy suburb of 55,000 souls looks fairly hum-drum and much like any other on the Buda side of the Danube. Yet once atop the railway bridge that forms a manmade barrier on the approach from the north, the observant visitor will spot the spires and turrets of a Disney-like chateau amidst the 1970s housing blocks, while a glance up the hill behind appears to host something akin to a mosque.

Both buildings give an air of unexpected mystery and intrigue to Budafok, and both are inextricably linked to the legacy of one entrepreneurial innovator who, in the late 19th century, brought fame and fortune to his adopted home.

József Törley was born of ethnic German stock

in

1858

in what is today northern Serbia. After studying in Graz, Austria, he set off in the 1870s for Reims, France, to work as an apprentice winemaker in the capital of Champagne country.

The young Törley was quick to pick up the skills of making bubbly and soon founded his own winery in France before taking a trip to Hungary in search of grapes suitable for producing fine sparkling wines.

To his delight, in Etyek, 30 km west of Budapest, he not only found grapes growing in Champagne-like soil and climate but in Budafok, then just a village outside the capital’s boundary, he also discovered cellars ideal for fermenting and storing sparkling wines.

The twin finds gave Törley pause for thought: why go to all the trouble and risk of shipping grapes 1,400 km from Hungary to France when there were cellars near Etyek perfect for making a product to compete with Champagne?

So it was that within a matter of months, the mercurial Törley was busy selling his business in Reims and setting

up shop in Budafok, bringing with him Louis François, a renowned Champagne winemaker, to act as his cellar master.

Winery Tour

Telling this story, and the subsequent ups and downs of Törley’s brainchild, is the daily work of Pólika Szabó, a tour guide at the winery’s museum.

Szabó, in awe of the company’s founder, enthusiastically describes how in the early 1900s, he imported two of the very first commercial motor trucks into Hungary.

“In those times, everybody used horsedrawn carts and coaches. He bought the trucks in France and drove them back to Hungary, but he painted the Törley [logo] on the sides for marketing. I wanted so much to meet József Törley; he was very innovative, with a lot of energy,” she says.

He also employed innovative marketing techniques at home: Once the first vintage of sparkling wines was ready for sale, Törley hired the best graphic artists to design posters, many displaying beautiful women in the best fashion of the day, to create an allure of high-class sophistication around the brand.

Nor was he averse to employing more dubious marketing ploys. As his fame grew, if a restaurateur of note declined to stock his wines, Törley would send friends to dine at the reluctant establishment with instructions to order his wines and, once it transpired the “famous brand” was not available, create a loud, shameful fuss to embarrass the owner into line.

Törley’s exuberant, non-stop nature may not have suited all involved, however. Within a few years, his French

Guide Pólika Szabó takes some time out of the cool passages of the museum to enjoy the park outside the Törley sparkling wine cellars in Budafok. Photo by Kester Eddy. cellar master, dissatisfied with the remuneration on offer, went independent, setting up a competing winery next door to his former employer, although the two remained on speaking terms.

The François winery also proved successful yet seemingly did little to harm Törley, who powered on, his revenues funding the construction of the opulent chateau with spires and turrets behind the wine cellars that grace Budafok to this day. (The mosque-like building on the hill is the family mausoleum, though it’s not entirely clear when that was built.)

Soon into the museum tour, Szabó points to a book created

in

1907

to document the company’s first 25 years of existence as part of the celebrations organized by Törley. By the standards of the time, it was undoubtedly fast development.

Company Succession

Yet the founder would play little further part in his company nor profit from its success. Within weeks, on holiday in

Getting to the Törley Museum The museum is at Anna utca 7, in Budafok, part of Budapest’s XXII district.

Hungarian State Railways (MÁV) runs a regular suburban service to Budafok from Budapest’s Déli Railway Station, but the best means by public transport are probably tram 47 (from central Pest) and tram 56 (from Buda). The closest

station for the museum is Leányka utcai lakótelep, two stops before the terminus at Városház tér, but if you miss the stop, it’s only a short walk back. The 33 and 133E buses also run to Budafok, and stop at Leányka utcai lakótelep.

Visitors should book times via the museum websites: torleymuzeum.hu/

Belgium, he died of appendicitis on a train in Belgium and, lacking a direct heir, his brother took the company over.

The company continued to flourish, producing two million bottles of wine in 1910, before war, depression and war again stymied development. The cellars were hit by allied bombing in the summer of 1944 (almost certainly by accident, the target being the Manfréd Weiss Steelworks, 200 meters distant across the Danube). Then, following “liberation” by the Red Army in 1945, only a handful of employees stayed to sell off stocks before the communist state nationalized the company in 1950, with Törley’s descendants forced into exile in the Hortobágy, in rural eastern Hungary.

Yet, with the demise of Stalinism, a more pragmatic form of communism enabled a revival of the company, though still state-owned, from the late 1950s.

Today, after the change of system in 1990, Törley, owned by the German Henkell & Söhnlein sparkling wine company since 1992, is once again flourishing, with a clutch of brands, including François, named for the original cellar master, Hungaria, and BB, and producing some

21 million bottles

of sparkling wine annually.

Following the inevitable dearth of visitors as a result of the coronavirus pandemic, Szabó is hopeful of a revival of visitors to the museum, essentially Budafok’s principal tourist attraction, to learn about the history and technology of sparkling wine, not to speak of the tasting at the end of the tour.

Gabriella Balogh, PR and product manager, plans special celebrations to commemorate the 140th anniversary of Törley Sparkling Wine, which will certainly focus attention on the company.

“We are having a big party for three days. You can come; it’s the first weekend of September,” she says.

en/visiting-in-groups. Guided tours for groups up to a maximum of seven persons start at HUF 38,000, but rise according to the number of wines to be tasted. Warm clothing is advised.

Note that the museum is part of the premises that house the working Törley cellars, and guests might be asked to explain their purpose on entry to the gateman.

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Special Report

www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

Most Hungarians go Digital When Paying Abroad However, Hungarians are less keen to travel for “long” holidays (more than three nights) abroad

Hungarian travelers prefer using their bank cards or smart devices to pay while holidaying abroad, according to Visa’s Travel and Payment Intentions Study 2022, covering eight Central and Eastern Europe markets.

BENCE GAÁL

When traveling internationally, as many as 62% of Hungarian respondents declared they prefer paying with their cards or smartphones/

in

2022

compared to the other CEE citizens, with nearly a third of respondents planning such breaks this year. That compares with 40% for Poles, 41% for Czechs, and 42% for Bulgarians, with Slovenians showing a much bigger appetite for long vacations this year (nearly 62%), followed

by Romanians (more than 50%).

When it comes to short (three-day) weekend breaks, again, one-third of Hungarians say they intend to go abroad for a weekend this year. These shorter trips are most popular amongst Slovenians, 44% of whom would like to take this type of holiday this year, followed by Croatians (41%).

Approximately 15 % of Hungarians have shown a preference for shopping trips to neighboring countries. Their preferred destinations include Austria (63%), Slovakia (28%) and Croatia (22%).

Ede Kiss, country manager for Visa in Hungary. smartwatches. This trend developed during the pandemic lockdowns when consumers turned to online shopping and contactless payments

to pay for goods in stores. These same habits are now being reflected in payment preferences when on holiday outside the country’s borders.

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Force for Good

“Visa has long-believed that travel and tourism can be forces for good; important drivers of economic opportunity and jobs as well as cultural awareness and appreciation,” says Ede Kiss, country manager for Visa in Hungary.

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“The Visa CEE Travel and Payment Intentions Study 2022 shows that Hungarians are looking forward to resuming their pre-pandemic travel habits this year. The return to travel, be it for holiday, city break, or shopping in a neighboring country, demonstrates that Hungarian consumers are rebuilding their confidence level, which bodes well for a rebound in international travel and cross-border transactions,” Kiss adds.

Almost 48% of Hungarians plan their holiday travels several months in advance,

with

20%

planning their trips about a month ahead.

The top holiday travel destinations for Hungarian residents in 2022 include Croatia (more than 31%), Italy (nearly 24%), followed by Greece and Spain (both around 20%).

The top three destinations for city breaks include Vienna (nearly 28%), Rome (22%) and Prague (almost 19%). As many as 43% wish to take two or three city breaks this year, and nearly 38% will go for a city break at least once. In terms of planning such trips, a third of respondents do so about a month in advance, while more than 16% plan their short getaways a week or two earlier.

“We are seeing Hungarians are relying on card and mobile device payments when traveling abroad, with 62% of the nationals of Hungary indicating these methods of payments as Digital Preference preferred. This is the highest For managing travel expenses and payments, most Hungarian respondents amongst the eight Central (62%) indicated a preference for digital and Eastern European methods, including bank cards and countries surveyed.” smart devices. Hungarians who use The study shows that approximately half of Hungarians want to go on holiday once this year. This is also true for Poles (52%), Czechs (nearly 50%), and Slovaks (47%).

Other Hungarian respondents declared they would go on holidays more often: two or three times (38%), and for a small minority on four or five occasions (7%).

Special Report | 19

such payments value these methods for convenience (70%), speed (64%), and security (47%), but also the lack of risk of losing cash (40%), and the ability to avoid changing money into local currencies (40%).

“We are seeing Hungarians rely on card and mobile device payments when traveling abroad, with 62% of Hungarian nationals indicating these payment methods as preferred. This is the highest

amongst the eight Central and Eastern European countries surveyed. Thanks to the innovative and trusted global Visa network, everyone can pay quickly, conveniently, and securely at more than 100 million locations across more than 200 countries and territories,” Kiss adds.

One interesting aspect of card payments is that the vast majority of Hungarians (89%) use the same card when traveling abroad as at home, and

only

11%

of Hungarians use a different card for payments outside the country. The reasons for using another card cited by half of the Hungarian respondents are feeling safer

not using their “primary” payment card abroad, better exchange rates (38%), access to multiple currencies (28%), and better control of spending (22%).

“When shopping abroad, paying by card or mobile phone remains the most convenient choice. In most countries, there are extensive acceptance networks.

The exchange rate the bank charges for a card purchase is also quite important,” says Tamás Farkas, senior bank card advisor at OTP Bank.

The top spending spots for digital payments abroad include petrol stations (73%), shopping malls (72%), restaurants (almost 69%), and groceries (64%), but also entertainment, such as museums, galleries, and amusement parks (nearly 62%).

PRESENTED CONTENT

VeszprémFest to Host new and Returning Star Performers After two years of COVID-impacted festival seasons, VeszprémFest returns from July 11-16 with a diverse, demanding art experience in the “City of Queens,” with all genres, from opera to classical music, jazz, and world music.

RENÁTA KÓNYA

Besides renowned international stars Diana Krall, Jamie Cullum, Ana Moura, The Gipsy Kings, ZAZ, and James Blunt, young Hungarian musicians will also perform.

Among the headliners is double Grammy-awarded Krall, who returns after her concert in 2013. “I think she is the best instructor in that she shows the most popular face of jazz for those who are not familiar or less familiar with the genre. With her songs and by shaping the great compositions of jazz history into her image, she creates a real effect,” Zoltán Mészáros, managing director of VeszprémFest, tells the Budapest Business Journal.

“Our most sub-cultural invitee is Ana Moura, the world-famous Portuguese faddist. After performers from Africa and Latin America in previous years, this is the first time we ‘travel’ to Portugal. I consider it important that world music does not fade away from the festival’s international musical palette,” Mészáros explains.

our revenue falling while our costs remained,” Mészáros recalls.

“For this reason, we focused the

2021 festival

VeszprémFest’s accompanying wine event, “Rosé, Rizling and Jazz Days,” runs from July 8-17 at its traditional location of Óváros tér, Veszprém. The

12th

gastro-cultural

event will welcome visitors with the slogan “10 days, 30 winemakers, 30 concerts.”

Among other improved features is a new location at Városháza tér, a quieter place for families with young children.

“We have noticed that a lot of young couples are coming with children, so this year we are organizing a children’s animation corner together with the European Capital of Culture project, a part of which is a drawing competition that has been organized for years. It is important to provide these families with more program opportunities and improve their experiences at the festival,” says Mészáros.

In addition to the international performers, Hungarian bands, including the Budapest Bossanova Quartet, Valami Swing, and the Varga Tivadar Trió, will also take the stage, some featuring on the main stage as pre-bands.

Zoltán Mészáros “We always try to provide an opportunity for young and early-career Hungarian performers on the main stage who would not be able to perform in front of an audience of 3,000.”

Obstacles Overcome

The past two years have posed extreme obstacles to festival organizers, as the entertainment industry suffered the most COVID-related restrictions.

Mészáros acknowledges severe difficulties but hopes this year will recall pre-pandemic times.

“For the first time in the festival’s history, the main-stage concerts were canceled in 2020, with only the Rosé, Rizling and Jazz Days being held, postponed to August.

It was dramatic also from a business perspective, with almost all of

on Hungarian performers, Tom Jones being the only international performer. I consider last year successful, but 2020 hit us hard.”

The festival, which this year introduces a new app with ticket purchase options and a parking assist function, expects performers to return with more stunning visuals and lights after two years of canceled tours. Despite the financial and organizational hurdles caused by the pandemic and inflation, this year’s event is returning to its usual shape.

“We see that the European festival industry, including the Hungarian ones, is lively and bustling again. We look ahead to this year’s festival as we did with the last COVID-free year in 2019,” Mészáros concludes.

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Special Report

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Budapest Business Journal | July 1 – July 14, 2022

PRESENTED CONTENT

Marriott Brands Still ‘Looking for Opportunities to Innovate’ in Budapest Arne Klehn, multi-property general manager of the Budapest Marriott Hotel and Millennium Court, Marriott Executive Apartments, talks with the Budapest Business Journal about rebuilding business after COVID and during a European war and some of his expectations for the future.

BBJ: How are you overcoming the challenges of finding staff, given the numbers that left the hospitality sector during the pandemic and the very tight labor market?

AK: The hallmark of our culture for 95 years has been to put people first. With a genuine approach to taking care of our associates, striving to become the employer of choice by becoming more flexible as an employer, introducing unique benefits, and providing opportunities. Currently, 10% of our workforce are foreign nationals, and we continue to focus on youth, diverse populations, women, people with disabilities and refugees. We partner with leading nonprofits to ensure workplace readiness and access to opportunities for our business.

BBJ STAFF

BBJ: Just as we come out of COVID, we have to contend with the war.

Russian and Ukrainian tourist flows have halted, and there were reports, at least initially, that American and even German travelers were choosing other destinations further from the war. How are things for the Marriott hotels in Budapest? What are your occupancy rates?

Arne Klehn: We are deeply saddened by the horrific violence impacting the people of Ukraine. At the beginning of the war, we experienced a few smaller short-term cancellations of groups and events. However, our occupancy remained consistently high, thanks to the returning general tourism demand, which is further reinforced by sports events and the restarting river boat groups from the United States. We find that international business events are returning more slowly to Budapest than previously anticipated, and they tend to choose alternate destinations.

BBJ: The Hungarian F1 Grand Prix is just around the corner and will book out the city. What are your expectations for the rest of 2022?

AK: We are fortunate to have had an F1 Grand Prix consistently since 1986. The city will definitely benefit during race week and so will we.

We also remain optimistic that the second half of 2022 will be as successful as the first.

see that our brand portfolio has been significantly growing in Hungary. Many different brands are presented in the city, with some more to come in the future. We all are part of the Marriott family, and we work together closely on different matters such as charity activities and employer branding, as well as a variety of shared services across the portfolio.

Arne Klehn BBJ: What level of planning are you able to make beyond 2022?

AK: Looking beyond 2022, we experience a continuously growing demand recovery from the pandemic faster than we anticipated. We also use a wide range of tools to help identify business improvement opportunities. This includes techniques to improve our day-to-day processes.

BBJ: Are you exploring new markets for fresh sources of tourists or concentrating on those places where Budapest is already popular?

AK: This year’s itinerary is still focused on the traditional sending markets due to current circumstances and the aftermath of COVID, but again there is a growing and more substantial interest from the Middle and the Far East feeder markets, mainly India, the UAE, Malaysia, and Singapore. In our business plan for 2023, which will be developed in a few months, we will also focus more strongly on these markets, continuing to monitor trends.

BBJ: Did you use the enforced quieter period during COVID to accelerate or bring forward renovation programs? Is anything planned for the near future?

AK: Ever since the pandemic started, we never stood still but looked for

opportunities to innovate. Whether it was housing several “ghost kitchen” concepts [essentially restaurants without the dining space; they sell and fulfill online food orders for delivery], perfecting our outside food deliveries during the festive season, hosting dozens of virtual cooking classes with customers, renovating our presidential suite, or opening our iconic Liz and Chain Sky Lounge on the ninth floor, the view from which is well-known from the Budapest’s picture postcards!

We are currently replacing our guest and service elevators. Marriott and our owners constantly drive property improvements and innovations, enhancing the guest experiences as well as for the future ahead.

BBJ: As the multi-property general manager for Budapest Marriott Hotel and Marriott Executive Apartments at Marriott International, what involvement do you have with other Marriott brands in the city (Marriott Courtyard Budapest City Center, RitzCarlton, and Matild Palace, a Luxury Collection Hotel) or the country (Four Points by Sheraton Kecskemet)?

AK: Marriott International is the world’s largest hotel chain. It is great to

“Our occupancy remained consistently high, thanks to the returning general tourism demand, which is further reinforced by sports events and the restarting river boat groups from the United States. We find that international business events are returning more slowly to Budapest than previously anticipated, and they tend to choose alternate destinations.”

BBJ: How is Marriott involved in programs to find and train the next generation of hotel staff in Hungary?

AK: We have very close relationships with universities in this field, such as Budapest Business School (BGE) and Corvinus University, and give their students the opportunity to visit our hotels, meet us and get lectures from our senior leaders.

Our HR and sales leaders have been mentors in the protégé program, which is a new initiative to provide guidance to young hospitality professionals and keep them within the industry. We are also part of the AmCham Career Ambassador program, inspiring students to join the world of hospitality, and we have successfully completed youth career programs for underprivileged youths.

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Budapest Business Journal | July 1 – July 14, 2022

BÁL Resort Hotel in Balatonalmádi Reopens After 2 Years After a complete renovation, the BÁL Resort in Balatonalmádi on the northeastern tip of Lake Balaton has reopened its doors. The 209room hotel has its own beachfront, extended wellness services, and a rooftop bar has been added.

BBJ STAFF

The two-year project has resulted in a wholly renewed hotel in Balatonalmádi.

Since June 1, it has offered 190 premium double rooms and 19 suites with panoramic views of Lake Balaton, a private beach area, and extended wellness services. It belongs to Hunguest Hotels, owned by Opus Global, part of the business empire of the billionaire investor Lőrinc Mészáros, a vital ally of Prime Minister Viktor Orbán.

Located about 112 km southwest of Budapest by road on the “northern” shore of the lake, the Hunguest BÁL Resort is expected to be a popular destination.

The Conference & Event Center on the ground floor of the hotel offers nearly 1,000 square meters of natural light event capacity for up to 500 people.

The wellness features have been extensively upgraded with a modern spa area and a wide range of saunas and premium treatments. The former coldwater swimming pool has been replaced by an adventure pool, while an indoor relaxation zone helps guests recharge.

The hotel says higher quality gastronomic units were created, with the restaurant and kitchen areas expanded.

The Kakas Brasserie & Grill has a barbecue terrace for good weather. The rooftop Skyrose Bar, available to hotel guests and walk-ins, offers a 270-degree panorama of Lake Balaton and the Balaton Highlands.

Milestone Moment

“We have reached a milestone in our hotel development program with the

Special Report | 21 opening of Hunguest BÁL Resort, and we are moving at a fast pace towards our strategic goal of developing the hotel chain into the most successful Hungarian tourism brand, offering value-for-money holidays to our visitors in all seasons,” said Ádám Détári-Szabó, CEO of Hunguest Hotels and head of Opus Global’s tourism division.

“Together with the newly reopened Balatonalmád hotel, we will open more than 600 renewed rooms to our guests in 2022,” he added.

Hunguest Hotels says it attaches great importance to preserving local values, and as part of this, it has also renovated the locally protected villa of Dezső Véghely, the former deputy bailiff of Veszprém County.

The hotel’s more than one-hectare garden, perfect for weddings, has also undergone a complete landscape transformation.

The reopening of the Hunguest BÁL Resort is expected to draw more than 80,000 guest nights and tens of millions of HUF in tourism tax revenue annually to Balatonalmádi.

The renovation project was partly supported by the Kisfaludy program, Kisfaludy Development Program, operated by the Hungarian Tourist Agency (MTÜ), which plans to distribute billions of forints to owners of hotels outside of Budapest.

The Kisfaludy Accommodation Development Construction Program thus covered 35% of the total cost of HUF 1.454 billion.

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Special Report

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Budapest Business Journal | July 1 – July 14, 2022

PRESENTED CONTENT

Discover how ‘Life is a Journey’ at the Anantara New York Palace Hotel Tamás Fazekas, general manager at one of the most historic hotels in Budapest, talks to the Budapest Business Journal about the rebranding of the Anantara New York Palace Hotel and what guests will find in a stay evoking luxury “without end.”

BBJ: What Anantara DNA will be perceived by clients?

TF: Anantara amenities, the arrival and departure experience, the introduction of signature concepts such as “Dining by Design” and “Spice Spoons” cooking classes, and exclusive experiences aimed at modern travelers, embracing the charm of the destination for guests to immerse themselves with authentic people and stories. A new Anantara Spa will be introduced later this year, complementing our existing well-equipped gym.

“Our hotel’s rebranding represents a significant milestone in the group’s ambition to expand the luxury brand of Anantara Hotels, Resorts & Spas in Europe while marking considerable progress in the strategy of creating added value for the customer base via new hotels and destinations.”

BBJ STAFF

BBJ: What does “Anantara” stand for?

What does the logo represent?

Tamás Fazekas: The Sanskrit word “Anantara” means “without end” and evokes the freedom, movement, and harmony that are the spirit of the Anantara experience. Each Anantara property draws its strength from the rich cultural traditions, historical heritage and natural beauty of its destination.

As such, every visit is a unique voyage of discovery and inspiration that is distinctly Anantara.

The brand’s strapline, “Life is a Journey,” reflects Anantara’s philosophy and core values. The logo is a water jar emblem intended to symbolize Thai hospitality and its generous spirit, along with two Thai cushions representing comfort. The logo’s main color scheme is gold to keep in mind the luxury and sophistication of the brand.

Our hotel’s rebranding represents a significant milestone in the group’s ambition to expand the luxury brand of Anantara Hotels, Resorts & Spas in Europe while marking considerable progress in the strategy of creating added value for the customer base via new hotels and destinations. In fact, the Anantara brand is very proud to have this historic property, an esteemed icon in Budapest city, not only for its abundant heritage but also for being a reference in the food and beverage offer with a bustling atmosphere, a landmark for the vibrant events organized, and chiefly for its efficient and kind staff, praised by all clients.

BBJ: Why are some city properties being rebranded as Anantara, which is better known as a resort brand?

TF: Indeed, Anantara has historically been known as a luxury resort brand, but over recent years it has strategically

Alliance, the world’s largest alliance of independent hotel brands, brings together 35+ brands with more than 570+ hotels spread across 85 countries in its portfolio. That means there is a fit for every travel need, from iconic European palaces, overwater Maldivian villas, safari escapes, or sybaritic spa retreats (all perfect for honeymoons or other trips á deux) to business-friendly hotels ideally situated in the center of global hubs.

Tamás Fazekas looked to expand its footprint into city locations as well. Currently, Anantara has hotels in the capital cities of Abu Dhabi, Amsterdam, Bangkok, Dublin, and Rome, and more city hotels will undoubtedly be added in the coming years.

Anantara connects travelers to a local authenticity, grounds them in genuine luxury, and hosts them with passionate expertise. With the “Dining

by Design” experience, our guests can choose whether to have a unique dining experience in the hotel or one BBJ: What is an “Urban/city Anantara?” of Budapest’s most prominent culinary TF: Anantara’s essence of accommodating tourist attractions, Gundel Restaurant. modern travelers, connecting them to For those who seek an outdoor dining real places, people, and stories through adventure, the Anantara picnic basket tailored personal experiences, is now is part of our “Discovery Experiences,” applied to the key European cities, bringing New York Café flavors into continuing to provide heartfelt hospitality. nature, for example, to Margaret Island.

It is your resort in the city.

Guests should also not miss a boat trip on the Danube!

What can Anantara New York Palace Budapest offer to guests BBJ: What kind of loyalty program that is different from other does Anantara have? hospitality brands?

TF: As a Discovery member, guests TF: Our collection of distinct, will enjoy global loyalty benefits from thoughtfully designed luxury their first stay, such as exclusive hotels provides a new approach to member rates, room upgrades, late discovering or rediscovering places check-out, comfort-enhancing perks, through curating personal travel and awards to experience a property experiences. From cosmopolitan that truly reflects the culture and cities to desert sands to lush islands, traditions of its location. Global Hotel

BBJ: What type of spa?

TF: Drawing upon Thailand’s wellness traditions mixed with Hungarian expertise, cultural inspirations, and therapeutic ingredients, the Anantara Spa offers unique signature journeys deeply rooted in authentic luxury, holistic practices, and indigenous experiences.

It uses chemical-free products, treatments, and rituals inspired by the Thai origins of Anantara and combines that with innovative modern therapies and natural products, delivering the highest definition of relaxation and pampering.

Highly trained and specialized therapists perform every treatment at the Anantara Spa. These experts tailor perfect experiences from comprehensive menus of massages, body and facial treatments, bringing together exclusive ingredients and aromas and time-honored techniques to promote long-term health and wellbeing.

Anantara Spas are a haven of peace and tranquility, an utterly relaxing and rejuvenating experience in unique settings. Our spa will have many treatment rooms, several saunas and a pool.

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Budapest Business Journal | July 1 – July 14, 2022

PARTNER CONTENT

4

Matild Palace Celebrates 1st Anniversary with Special Gastronomic Offers Matild Palace, an iconic Budapest building from the Belle Époque era, has celebrated its first anniversary as a luxury hotel, having won numerous local and international awards since opening.

Puck’s cuisine offers a variety of experiences recalling Hungarian history, tradition, and culture throughout the hotel. The gastronomic offer of the Matild Café & Cabaret, often visited by the famous Hungarian writer Gyula Krúdy in the past, includes Hungarian beef stew with homemade spaetzle (noodles), homemade Krúdy-style sausages, a variety of salads, and starters such as a house-smoked salmon plate.

“We look to the future with great excitement, as the first cabaret performances on the hydraulic stage of the café will also start in the autumn. We look forward to introducing many new experiences in the coming months.”

RENÁTA KÓNYA

After a five-year renovation, the reborn palace reopened as the Matild Palace, a Luxury Collection Hotel, Budapest, part of The Luxury Collection portfolio of Marriott International. From the start, it has featured novel culinary concepts.

The first European setting for famed the Spago restaurant brand, The Duchess rooftop bar, and Matild Café & Cabaret, a reimagination of the renowned “Belvárosi Kávéház,” were opened under the culinary supervision of worldfamous chef Wolfgang Puck.

The Matild Palace, part of a UNESCO World Heritage Site, celebrated its first anniversary with special gastronomic offers on June 28. Guests could spend the entire day at the luxurious building and take a gastronomic journey to discover classic Spago dishes, refreshing cocktails at The Duchess rooftop bar, and a unique selection of cakes at the recently opened Matild Café. The culinary team consists of Hungarian and international chefs, and the varied menus also feature both local and foreign dishes.

“It is a great honor for us, the team of Matild Palace, to be able to enrich the Hungarian capital not only with a reborn historical building in the past year but also to further enhance the gastronomic offer of Budapest through the three outstanding venues of the palace,” said Selim Ölmez, the newly appointed general manager at Matild Palace.

The palace has been reborn as a social and cultural epicenter of Downtown and will introduce new forms of entertainment after the summer.

“We look to the future with great excitement, as the first cabaret performances on the hydraulic stage of the café will also start in the autumn. We look forward to introducing many new experiences in the coming months,” Ölmez added.

Special Report | 23

The renovated palace, originally built between 1899 and 1902, reflects its Dual-Monarchy heritage, while the interior design pays homage to the rich history of the famous building.

Architects Péter Dajka and Antal Puhl reimagined the plans of the building, with the breathtaking interiors created by the award-winning Greek-born designer Maria Vafiadis, founder of the London-based MKV Design.

Luxury by Design

The luxury and gastronomic features of the hotel have been recognized since its opening. In 2021, Matild Palace was awarded “Best Hotel Luxury” and “Best Guestroom Luxury” in the prestigious “Gold Key Awards for Excellence in Hospitality Design” competition. It won “Hungary’s Leading Hotel 2021” in the global travel industry’s prestigious World Travel Awards. Furthermore, it has been selected among the best new hotels in the world on the international travel lists.

Wolfgang Puck’s Spago Budapest restaurant was added to the list of the Michelin guide’s Budapest restaurant selection. Head chef István Szántó had the opportunity to present Hungarian classics, such as Chicken paprikash, Somlói dumplings, and Eszterházy cake, for Hollywood stars at the Oscar gala, the first Hungarian chef in Oscar history to do so.

Spago, maintaining its leading position as one of the pioneers of the gastronomy world, caters to a brand-new gastronomic culture in Budapest by blending founder Puck’s iconic Californian cuisine with local chefs’ culinary skills, Hungarian traditions, and choice local products.

Spago Budapest offers specialties from the chef, like the special lemon cake, smoked salmon pizza with osetra caviar, or the classic wiener schnitzel with fingerling potatoes.

The café’s cake repertoire features the famous sweets of the Austro-Hungarian Monarchy, including Eszterházy and Dobos cakes. Guests can also discover the iconic Matild cake, created in honor of the great ancestors of the longestablished venue. This signature cake is made with peanut liqueur, recalling a drink that was fashionable in the past in local coffee house culture. In addition to coffee, visitors can also taste unique lemonades and cocktails on-site; the Szindbád and Krúdy úr cocktails evoke the world of the bohemian Belle Époque era.

For lovers of Budapest’s splendid panorama, the “secret” rooftop setting of The Duchess offers lasting experiences. The renewed “liquor library,” inspired by the Archduchess Maria Klotild, which once served as a rendezvous retreat for Budapest’s Decadence Movement, offers a yearround covered rooftop terrace. It provides breathtaking views, special drinks, and bar food dreamed up

by Wolfgang Puck.

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Special Report

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Budapest Business Journal | July 1 – July 14, 2022

PROMOTION

Celebrity Cruises Takes Delivery of ‘Transformational’ Cruise Ship Celebrity Cruises took delivery of a new vessel on April 6: Celebrity Beyond, the third and most luxurious ship in the fleet’s new luxury Edge Series.

It is, the brand insists, a game-changer for the travel industry.

Captain’s Choice

BBJ STAFF

The moment was particularly special as president and CEO of Celebrity Cruises’ it marked the industry’s first physical parent company Royal Caribbean Group. delivery ceremony since the pandemic.

Celebrity Cruises’ president and CEO Designed to give guests endless Lisa Lutoff-Perlo welcomed what she opportunities to disconnect from the called “this incredible ship.” She said it world while simultaneously reconnecting, “signifies our commitment to investing in Celebrity Beyond creates a new world the future of the travel industry, as well of wonder and what the cruise company as the shipbuilding industry in Europe. calls “approachable luxury.”

We are so grateful to the Chantiers de With forward-thinking design by l’Atlantique team, our newbuild and the world’s leading architects and Celebrity Cruises team; our loyal guests interior designers, culinary excellence and trade partners, and everyone who from Michelin-starred chefs, worldhas contributed their time, resources, renowned wellbeing partners, exquisite creativity and loyalty. We look forward art, luxury brand retailers, and to what’s to come as the travel industry Celebrity’s class-leading service, grows to new peaks.”

Celebrity Beyond shatters every She said the ship’s “innovative preconceived notion of the cruising offerings” from some of today’s most experience. A floating boutique hotel, talented designers, artists and creative Celebrity Beyond exemplifies newminds, reach “far beyond expectations.” luxury travel and its future at sea.

She continued: “We believe that “The delivery of Celebrity Beyond Beyond speaks to the growing trend of marks our ongoing commitment to people seeking new luxury experiences growth and innovation; today, we that are personalized, effortless and celebrate the future of travel and meaningful. We see a continued desire its possibilities,” said Jason Liberty, to travel as business steadily increases,

inspire all guests and crew who sail on board the vessel and is considered a lifetime title and honor. In her new role, Biles will “christen” the new ship at the official naming ceremony in Fort Lauderdale on Nov. 4, 2022.

For its groundbreaking Edge Series ships, Celebrity has selected equally transformational and courageous godmothers who have broken barriers and are championing change in their fields. Biles thus joins Nobel Peace Prize Laureate Malala Yousafzai and Reshma Saujani, founder of Girls Who Code and the Marshall Plan for Moms, godmothers of Beyond’s sister ships Celebrity Edge and Celebrity Apex, respectively.

and we see Beyond leading the cruise industry into the next era of luxury.”

Celebrity Beyond’s maiden voyage departed on April 27 from Southampton, England, for a 10-night Western Europe cruise visiting Bordeaux, France; Lisbon, Portugal; and Seville, Malaga, Palma de Mallorca, and Barcelona in Spain.

During the summer, Beyond offers a variety of Mediterranean journeys, including nine-night Italian Riviera and France itineraries and 10-night Greek Isles itineraries until early October, when she will head to the Caribbean.

Godmother Biles

The official ship naming ceremony will involve a suitably notable celebrity later this year. The cruise firm has announced that Simone Biles, 19-time World Champion and seven-time Olympic Medalist, will add a unique title to her decorated career when she becomes “godmother” for Celebrity Beyond.

A long-standing tradition for new ships, the role of “godmother” is to

Meanwhile, Celebrity Cruises’ captains are sharing their favorite Greek experiences through a new “Captaincurated” shore excursions program.

Offered aboard any Celebrity ship sailing the Greek Isles during summer 2022, the exclusive excursions are designed to ensure guests a journey “full of wonder” and the chance to experience the destination “like a local.”

“What a dream come true for our guests to experience one of the world’s most breathtaking regions through the people who know it best, our captains, who either grew up in Greece or have spent their career sailing to and visiting its ports,” said Lutoff-Perlo. “Celebrity Cruises has a proud Greek heritage, and Greece holds a special place in our hearts that we are now uniquely sharing with our guests.”

Celebrity Cruises was founded in 1988 by the Chandris family of Greece, later becoming a part of the Royal Caribbean Group. The cruise company is still rooted in its Greek origins today, with 70% of marine officers across the fleet hailing from Greece, including more than 40 captains and chief engineers.

Whether visiting a family-owned olive mill, discovering hidden culinary gems, including the best spot for kebabs, or taking in the best panoramic vistas, guests will enjoy these unforgettable experiences in an intimate, limited capacity experience.

These incredible ships can be booked at TENGERJARO – info@rccl.hu, www.rccl.hu, tel.: 36-1/345 002.

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Budapest Business Journal | July 1 – July 14, 2022

Special Report | 25

Four-star Hotels in Budapest

6

continental Hotel BuDapest / Joy Hotels kFt. www.continentalhotelbudapest.com

7

DanuBius Hotel Helia / DanuBius Hotels ZRt. www.danubiushotels.com/hu/szallodakbudapest/danubius-hotel-helia

8

RaDisson Blu Béke Hotel / DanuBius Hotels ZRt. www.danubiushotels.com

9

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1053 Budapest, Kecskeméti utca 14.

(1) 486-8800 h1765@accor.com

7,681

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Massage, congress center, parking lot, bus parking

1982

Accor-Pannonia Hotels Zrt. (100) –

christophe le Brun – –

1123 Budapest, Alkotás utca 63–67.

(1) 372-5400 h0511-rm@accor.com

775

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2021

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1087 Budapest, Baross tér 7–8.

(1) 279-9000 budapest@ intercityhotel.com

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2006

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Roland sivó Istvánné Opoczki Szabolcs Kiss

1044 Budapest, Íves út 16.

(1) 231-3600 reservation@ aquaworldresort.hu

2010

Joy Hotels Kft. (100) –

Zoltán géher – –

1074 Budapest, Dohány utca 42–44.

(1) 815-1000 continentalinfo@ zeinahotels.com

1990

Danubius Hotels Zrt. (100) –

áron szabó – –

1133 Budapest, Kárpát utca 62–64.

(1) 889-5800 helia@ danubiushotels.com

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1067 Budapest, Teréz körút 43.

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234

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1088 Budapest, József körút 5.

(1) 327-5100 reception.mbcc@ cpihotels.com

11

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227

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1088 Budapest, Rákóczi út 43–45.

(1) 477-5300 h3560@accor.com

12

k+k Hotel opeRa / k+k Hotel kFt. www.kkhotels.com

200

276 (2020)

120 120

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gergely Dobos – –

1065 Budapest, Révay utca 24.

(1) 269-0222 kk.hotel.opera@ kkhotels.hu

13

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182

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1094 Budapest, Tompa utca 30–34.

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2006

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1027 Budapest, Bem rakpart 33–34 (1) 458-4900 h6151@accor.com

15

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164

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péter mácsai – –

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16

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160

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2003

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Róbert Weinraub – –

1137 Budapest, Vígszínház utca 3.

(1) 814-0000 nhbudapestcity@ nh-hotels.com

17

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152

364 (2020)

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Budapest Business Journal | July 1 – July 14, 2022

Four-star Hotels Outside Budapest

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1985 2015

(86) (14)

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8237 Tihany, Rév utca 3.

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Karosinvest Zrt. (100) –

botond Üsztöke – –

8749 Zalakaros, Alma utca 1.

(93) 542-550 sales@karos-spa.hu

✓

Transfer, bike rental, juice fasting, body shaping

1997 2021

Hotel Carbona Zrt. (100) –

zsuzsa müller-pápai – Klaudia Varga

8380 Hévíz, Attila utca 1.

(83) 501-501 hotel@carbona.hu

✓

–

2015 2017

(100) –

tibor horváth – –

8749 Zalakaros, Üdülő sor 1.

(93) 920-103 info.zalakaros@ parkinn.com

✓

–

2006 2020

P.S. Hotel Kft. (100) –

gábor zsolnai – –

9600 Sárvár, Vadkert körút 4.

(95) 530-100 info.sarvar@parkinn.com

–

1984 2015

Danubius Hotels Zrt. (100) –

istván henrik – –

8380 Hévíz, Kossuth Lajos utca 13–15.

(83) 889-500 aqua.reservation@ danubiushotels.com

✓

–

2000 2022

János Tóth (100) –

ferenc zsolt horváth Csilla Wimmer Krisztina Harmati-Győrffy

8380 Hévíz, Jókai utca 3.

(83) 501-100 sales@europafit.hu

2003 2009

Hunguest Hotels Zrt. (100) –

lajos czár – –

8300 Tapolca, Köztársaság tér 10.

(87) 513-100 hotelpelion@ hunguesthotels.hu

otheR

280 8 5

2

oWneRship (%) hungaRian nonhungaRian

massage

✓

theRapy

✓

pools

✓

events

✓

caR Rental

✓

inteRnet in Rooms

✓

gaRage

✓

family fRienDly

✓

300 30 7

beauty salon

✓

1

club tihany / club tihany ÜDÜlőközpont zRt. www.clubtihany.hu

Wellness

✓

hotel name / name of opeRating company Website

business coRneR

1,718

85–105 110–180

Rank

single Rate (euRo/night) Double Rate (euRo/night)

seRvices

total net Revenue in 2021 (huf mln)

no. of Rooms no. of suites no. of meeting Rooms

Ranked by no. of rooms hotel manageR cfo maRketing DiRectoR

aDDRess phone email

922

115–150 115–150

1,890

125 206

224 4 9

14,025

A A

–

✓

–

✓

–

✓

–

✓

✓

✓

✓

Therapeutic cave, wellness park

hotel egeR & paRk / hunguest hotels zRt. www.hotelegerpark.hu

214 10 6

14,025

58 110

–

✓

–

✓

–

✓

–

✓

✓

✓

✓

–

2004 2017

Hunguest Hotels Zrt. (100) –

katalin szabó – –

3300 Eger, Szálloda utca 1–3.

(36) 522-222 info@hotelegerpark.hu

10

theRmal hévíz ensana health spa hotel / ensana s.R.o. www.danubiushotels.com/ heviz

210 7 7

922

100–150 100–150

✓

Bike rental, gift shop

1976 2015

Danubius Hotels Zrt. (100) –

istván henrik – –

8380 Hévíz, Kossuth Lajos utca 9–11.

(83) 889-400 heviz.researvation@ danubiushotels.com

11

gReenfielD hotel golf & spa / aDventoR hotel kft. www.greenfieldhotel.hu

207 13 6

886

126 168

✓

Transfer, bike rental, electric scooter rental, sports programs

2004 2016

MINERVA Befektetési Alapkezelő Zrt. (100) –

tamás sáfrány – –

9740 Bük, Golf utca 4.

(94) 801-600 reservation@ greenfieldhotel.hu

✓

Lake, running track, volleyball court, playground, 2 playrooms, 1 games room, bicycle rental, electric scooter rental, sauna world, animation

2005 2016

Hunguest Hotels Zrt. (100) –

attila tapodi – –

3394 Egerszalók, Forrás utca 4.

(36) 688-600 sales@salirisresort.hu

✓

Gift shop, sauna world, tennis court, games room, e-roller rental, fitness room, children's entertainment

1986 2020

Danubius Hotels Zrt. (100) –

németh viktória Róbert Beke –

9740 Bük, Európa út 1.

(94) 889-400 reservation.buk@ danubiushotels.com 6726 Szeged, Szent-Györgyi Albert utca 16–24.

(62) 566-466 hotelforras@ hunguesthotels.hu 2481 Velence, Béke utca 57.

(22) 589-900 reservation@ velencespa.com

12

saliRis ResoRt spa és konfeRencia hotel / hunguest hotels zRt. www.salirisresort.hu

204 10 6

13

Danubius hotel bÜk / Danubius zRt. www.danubiushotels.com

197 3 3

14

hunguest hotel foRRás / hunguest hotels zRt. www.hotelforras.hunguesthotels.hu

196 6 7

15

velence ResoRt&spa / vRs paRt hotel kft. www.velencespa.com

186 4 –

14,025

922

90–120 120–150

140 180

14,025

84 116

1,062

138 177

✓

–

✓

✓

✓

–

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

✓

–

–

–

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

✓

✓

✓

–

1987 2017

(100) –

mihály szabó – –

–

2012 2022

VRS Part HOTEL Kft. (100) –

péter bársony – –

4

www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

Special Report | 27

Five-star and Boutique Hotels in Budapest

2

inteRcontinental budapest / mansion danube hungaRy kft. www.budapest.intercontinental.com

3

budapest maRRiott hotel / duna szálloda zRt. www.marriottbudapest.com

364 478 22 16

4

kempinski hotel coRvinus budapest / kempinski hotel budapest zRt. www.kempinski.com/budapest

353 706 38 10

5

hilton budapest / danubius hotels zRt. www.budapest.hilton.com

332 481 25 23

6

the aquincum hotel budapest / theRmal hotel aquincum zRt. www.aquincumhotel.com

310 620 8 14

7

cRoWne plaza budapest / Westend szállodaüzemeltető kft. https://crowneplaza.hu-budapest.com

8

hilton gaRden inn budapest / hotel yasmin budapest kft. www.hilton.com/en/hotels/ budccgi-hilton-garden-inn-budapestcity-centre/

9

anantaRa neW yoRk palace budapest hotel / neW yoRk palace kft. https://www.nh-hotels.com/hotel/ anantara-new-york-palace-budapesthotel

10

the Ritz-caRlton, budapest / adRia palace kft. www.ritzcarlton.com/en/hotels/europe/ budapest

438 A

31 26

A A A

A

1,807 (2020)

21 13

214 A A A

185 185 30 11

29 6

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

–

–

✓

✓

yeaR established yeaR last Renovated

otheR

events

caR Rental

inteRnet in Rooms

gaRage

beauty salon –

hotel manageR cfo maRketing diRectoR

addRess phone email

– International Hotel Investments Plc. (100)

christopher mallia Csaba Pálos –

1073 Budapest, Erzsébet körút 43-49.

(1) 479-4706 events.budapest@ corinthia.com

1981 2012

– Al Habtoor Group (100)

marten schoenrock Éva Alexa –

1052 Budapest, Apáczai Csere János utca 12–14.

(1) 327-6333 budapest@ihg.com

arne klehn Kiril Estatiev János Parti

1052 Budapest, Apáczai Csere János utca 4.

(1) 486-5000 budapest.reservations@ marriotthotels.com

2003

✓

–

✓

Fitness room, bar, terrace, car wash

✓

Terraces, roof bar, fitness, laundry, car wash

1994 2019

– CEE Property-Invest Inmobilien GmbH (100)

✓

ÉS Deli, NOBU Budapest restaurant, Blue Fox The Bar, laundry, car wash, fitness room

1989 2021

Kempinski Hotel Budapest Zrt. (100) –

stephan interthal Zoltán Schubert Judit Dénes

1051 Budapest, Erzsébet tér 7-8.

(1) 429-3777 hotel.corvinus@ kempinski.com

1976 2018

– CP Holdings Ltd. (100)

peter knoll Mariann Menyhárt Patricia Dombi

1014 Budapest, Hess András tér 1–3.

(1) 889-6600 info.budapest@ hilton.com

A

1,696

A A

✓

✓

–

–

–

✓

✓

–

✓

953

285 285

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

1991 2018

– Corinthia Investments Ltd. (100)

philippe mahuas – –

1036 Budapest, Árpád fejedelem útja 94.

(1) 436-4100 info@aquincumhotel.com

319

229 249

–

✓

✓

–

–

✓

✓

✓

✓

–

2000 2015

Gránit Pólus Group (100) –

maurice Janssen – –

1062 Budapest, Váci út 1–3.

(1) 288-5500 –

505 (2020)

A A

Fitness

2019 2019

– Longbridge group (100)

manuela brode – –

1065 Budapest, Lázár utca 11-13.

(1) 211-3050 info.gardeninnbudapest@ hilton.com

2,352 (2020)

390 440

✓

–

2009 2019

– Covivio (100)

tamás fazekas – –

1073 Budapest, Erzsébet körút 9-11.

(1) 886-6111 customer.nypalace@ dahotels.com

2,164

480 480

✓

Butler service, wedding planning, Club Lounge, private dining

– Al Habtoor Group LLC (100)

saeid heidari – –

1051 Budapest, Erzsébet tér 9–10.

(1) 429-5500 concierge.budrz@ ritzcarlton.com

171 A

475 500

✓

✓

✓

oWneRship (%) hungaRian non-hungaRian

LÁNG Bistro&Grill restaurant, lobby bar, laundry, fitness room, sauna, massage

230 A

A A

✓

✓

Wellness

3,327

179 199

402

✓

family fRiendly

225 250

business coRneR

1,634 (2020)

RestauRant

single Rate (euRo/night) double Rate (euRo/night)

1

coRinthia budapest / ihi magyaRoRszág szolgáltató zRt. www.corinthia.com/budapest

seRvices

total net Revenue in 2021 (huf mln)

hotel name / name of opeRating company Website

no. of Rooms no. of beds no. of suites no. of meeting Rooms

Rank

Ranked by no. of rooms

–

–

–

✓

✓

✓

✓

✓

✓

–

✓

✓

–

–

–

✓

✓

✓

✓

✓

✓

–

–

✓

✓

2016 A

Special Report

✓

✓

–

–

yeaR established yeaR last Renovated

–

✓

otheR

–

✓

oWneRship (%) hungaRian non-hungaRian

events

✓

–

caR Rental

A

A A

✓

✓

inteRnet in Rooms

246

214 299

–

✓

gaRage

250 250

✓

beauty salon

2,352 (2020)

138 269 138

✓

Wellness

460 460

family fRiendly

2,139 (2020)

business coRneR

160 179 19 4

RestauRant

12

neW yoRk Residence / neW yoRk palace kft. https://www.nh-hotels.com/hotel/ anantara-new-york-palace-budapesthotel

single Rate (euRo/night) double Rate (euRo/night)

11

fouR seasons hotel gResham palace budapest / sas magyaRoRszág vagyonkezelő kft. www.fourseasons.com/budapest

seRvices

total net Revenue in 2021 (huf mln)

hotel name / name of opeRating company Website

www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

no. of Rooms no. of beds no. of suites no. of meeting Rooms

Rank

28 | 4

✓

KOLLÁZS Brasserie & Bar, MÚZSA

2004 2020

– (100)

yves giacometti – –

1051 Budapest, Széchenyi István tér 5–6.

(1) 268-6000 budapest.pbx@ fourseasons.com

–

2011 2018

– Convivio (100)

tamás fazekas – –

1073 Budapest, Osvát utca 2–8.

(1) 424-4700 customer.nyresidence@ dahotels.com

–

2021 –

– RedWood Holding (100)

gábor Jakab – –

1065 Budapest, Nagymező utca 38.

(1) 472-5299 starservice@ hrhbudapest.com

Rooftop bar

2021 2021

Melis Investment Kft. (100) –

selim Ölmez Gokhan Gürbüz –

1056 Budapest, Váci utca 36.

(1) 550-5000 inquiries@ matildpalace.com

–

2019 –

Párizs Property Kft. (100) –

andrea schwindt-kiss – –

1052 Budapest, Petőfi Sándor utca 2–4.

(1) 576-1600 info@ parisiudvarhotel.com

– CEE PROPERTYINVEST Immobilien GmbH (100)

arne klehn Kiril Estatiev János Parti

1052 Budapest, Piarista utca 4.

(1) 235-1800 budapest.reservations@ marriotthotels.com

– Eurostars Hotels (100)

– – –

1054 Budapest, Akadémia utca 15–17.

(20) 254-0279 –

(100) –

zoltán árvai Noémi Várady Viktória Berényi

1064 Budapest, Podmaniczky utca 45.

(1) 616-6000 mystery@ mysteryhotelbudapest. com 1082 Budapest, Horváth Mihály tér 17.

(1) 701-6300 information@ kozmohotelbudapest. com

–

A

136

13

haRd Rock hotel / hRh bud management kft. www.hardrockhotels.com

14

matild palace, a luxuRy collection hotel, budapest / melis opeRation kft. www.matildpalace.com

130 152 19 4

15

páRisi udvaR hotel budapest / páRizs pRopeRty kft. www.parisiudvarhotel.com

110 230 18 4

1,156

438 498

16

maRRiott executive apaRtments / duna csillaga kft. www.marriott.com/buder

108 216 – –

447 (2020)

A A

–

–

–

✓

–

✓

✓

✓

–

–

1997 –

17

A

A

A A

A

A

A

A

A

A

A

A

A

–

2021 –

18

mysteRy hotel budapest / mysteRy hotel budapest kft. www.mysteryhotelbudapest.com

19

auRea ana palace hotel / www.aureaanapalacehotel.com/

kozmo luxuRy hotel budapest / A

www.kozmohotelbudapest.com/hu

A A A

A

✓

–

A

✓

✓

A

✓

✓

A

✓

✓

A

✓

✓

A

–

–

A

✓

✓

A

✓

✓

A

✓

✓

107 A A A

82 96 2 3

193 (2020)

61 A

23

150 170

–

✓

–

✓

–

–

✓

✓

A

172 226

–

✓

–

✓

✓

–

✓

–

✓

✓

✓

–

–

✓

✓

✓

A

A

A

A

A

A

A

A

✓

–

2018 2019

20

49 52 5 2

768

360 360

21

st. geoRge Residence all suite hotel de lux / st geoRge apaRtmanház kft. www.stgeorgehotel.hu

26 52 26 2

12 (2020)

129–269 229–279

22

baltazáR boutique hotel / zsidai gRoup www.baltazarbudapest.com

11 22 4 1

A

100–300 100–300

✓

–

–

–

–

–

✓

–

addRess phone email

–

2021 –

A A

andrés mena – –

✓

–

2015 2019

IBE Kft. (50) Henry Kallan (50)0

istván lukács – –

1051 Budapest, Hercegprímás utca 5.

(1) 445-4055 stay@ ariahotelbudapest.com

✓

–

2007 2017

– (100)

gábor Jusztin – –

1014 Budapest, Fortuna utca 4.

(1) 393-5700 info@stgeorgehotel.hu

–

2013 –

Zsidai Group (100) –

zoltán Roy zsidai – –

1014 Budapest, Országház utca 31.

(1) 300-7051 hello@ baltazarbudapest.com

A

A

aRia hotel budapest / ik hotels kft. www.ariahotelbudapest.com

hotel manageR cfo maRketing diRectoR

✓

4

www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

Special Report | 29

Five-star and Castle Hotels Outside Budapest

✓

✓

226 6 5

1,965

135 230

✓

✓

✓

–

–

✓

✓

✓

–

HOtel Divinus / Divinus HOtel kFt. www.hoteldivinus.hu

149 9 6

808

149 171

–

✓

✓

✓

✓

✓

–

✓

✓

kastélyHOtel sasváR ResORt

58 5

A

A A

–

✓

–

✓

–

✓

–

✓

✓

328

A A

–

✓

–

–

–

✓

–

✓

189

A A

✓

✓

–

–

–

✓

–

✓

2

lOtus tHeRme HOtel & spa / HOtel gaRDen kFt. www.lotustherme.net

3

A

www.khs.hu

A

5

anDRássy kúRia & spa / témaDesign kFt. www.andrassykuria.hu

6

BOtaniq tuRai kastély / BDpst HOtel management zRt. www.botaniqkastely.hu

7

HeRtelenDy kastélyszálló / HeRtelenDy kastélyszálló kFt. www.hertelendy-castle.com

8

FORgáCH kastély / WORlD tRansit kFt. www.forgachkastely.hu

A = would not disclose,

NR = not ranked, NA = not appliacable

38 3 1

19 A A

13 7 4

12 A A

(100) –

zsuzsa müller-pápai András Kósi Veronika Németh

9600 Sárvár, Vadkert körút 5.

(95) 889-500 info@spirithotel.hu

✓

✓

Tennis court

1996 2022

– (100)

attila Fülöp Mónika Póka Viktor Kosztolánczi

8380 Hévíz, Lótuszvirág utca 1.

(83) 500-500 info@lotustherme.net

–

✓

Biliárd, fitneszterem

2008 2022

Divinus Hotel Üzemeltető Kft. (100) –

eszter szigeti – –

4032 Debrecen, Nagyerdei körút 1.

(52) 510-900 info@hoteldivinus.hu

✓

✓

–

A

(100) –

andrás szélessy – –

3242 Parádsasvár, Kossuth utca 1.

(30) 424-4444 info@khs.hu

✓

–

✓

–

2008 –

(100) –

Barna kövesdi Judit Papp –

3915 Tarcal, Fő utca 94.

(47) 580-015 hotel@andrassykuria.hu

✓

–

–

–

BDPST group (100) –

Örs Csizmadia Judit Lieber –

2194 Tura, Park utca 37.

(28) 799-130 info@botaniqcastle.com

2007 2021

– Koller Group Holding (100)

istván gyenesei – –

7541 KutasKozmapuszta, 0120/4.

(82) 568-400 exclusive@ hertelendy-castle.com

2010 –

Individuals (100) –

Ferenc szabó – –

4644 Mándok, Szent István tér 9.

(70) 677-0131 info@forgachkastely.hu

OtHeR

2008 2021

massage ✓

Tennis court, squash, bowling

tHeRapy

OWneRsHip (%) HungaRian nOnHungaRian

pOOls

yeaR estaBlisHeD yeaR last RenOvateD

✓

events

–

CaR Rental

✓

inteRnet in ROOms

–

gaRage

–

Family FRienDly

✓

Beauty salOn

✓

Wellness

single Rate (euRO/nigHt) DOuBle Rate (euRO/nigHt)

✓

254 17 6

Business CORneR

tOtal net Revenue in 2021 (HuF mln) 4,108

1

spiRit HOtel tHeRmal spa supeRiOR / spiRit HOtel gyógyszállODa kFt. www.spirithotel.hu

4

seRviCes

200 325

HOtel name / name OF OpeRating COmpany WeBsite

nO. OF ROOms nO. OF suites nO. OF meeting ROOms

Rank

Ranked by no. of rooms

254

265 380

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

Airport, riding arena, sports fields, cross-golf, bicycles

722

139–350 139–350

✓

✓

✓

✓

–

✓

–

✓

✓

✓

✓

–

1998

2020 A

HOtel manageR CFO maRketing DiReCtOR

aDDRess pHOne email

This list was compiled from responses to questionnaires received by June 29, 2022, and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies’ voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14, or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

5

www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

Socialite

Unraveling Ulysses’ Hungarian Connection

When the news was announced on June 16 that Hungary was to be part of Ulysses: A European Odyssey, a project created by the European Commission’s Creative Europe Fund, my immediate question was “Why Hungary?”

DAVID HOLZER

The project “unites in a single vision 18 cities across Europe,” Budapest being one of them. Its aim is to “encourage and support cultural cooperation within Europe to bring the European common cultural heritage to the fire.”

At first glance, the fact that James Joyce’s “Ulysses,” first published in its entirety on Feb. 2, 1922, inspired the project seems somewhat odd. The book is notoriously difficult to read, or at least to start reading, and one wonders how many of the EU bureaucrats actually managed that feat before they came up with Ulysses: A European Odyssey.

I don’t say this from a position of superiority. I’ve tried to read Ulysses several times and the furthest I’ve got is page 70 or so. This always causes devotees of the book to raise an eyebrow.

Apparently, if you can make it that far you should be hooked and romp through the rest of the book. Not me.

The Creative Europe Fund announced the launch of Ulysses: A European Odyssey on June 16 because this is what’s become known as Bloomsday and 2022 was the 100th anniversary of the publication of “Ulysses.”

Bloomsday celebrates the day on which all the action in “Ulysses” takes place – June 16, 1904. This is the day it’s believed that Joyce had his first date with Nora Barnacle, who would become his wife. Bloomsday is named for Leopold Bloom, the central character in the novel.

Cultural Legacy” (well worth reading even if you have next to no interest in the famed novelist), “Mr. Bloom is the only child of Rudolf Virág, a Hungarian Jew from Szombathely and Ellen Higgins, an Irish Protestant. His father committed suicide by drinking poison.

His mother is also dead, but I’m unsure of the details.”

This begs the question of why Joyce made Bloom Hungarian, and specifically a Hungarian Jew. I don’t have the answer to that question, although I’m sure there are competing theories that have riven the world of Joyce scholarship, but I can speculate with the best of them.

Why is Bloom a Hungarian Jew?

Joyce was living in Trieste, then part of the Austro-Hungarian Empire, when Archduke Ferdinand was assassinated by Bosnian Serb nationalist Gavrilo Princip in Sarajevo. The assassination led to Austria declaring war on Serbia on July 28, 1914, and to the chaos and carnage of World War I that dramatically redrew Hungary’s borders to its detriment.

Joyce left Trieste for the safety of Switzerland a year later.

An Irishman with a British passport living in Europe, Joyce knew what it was like to be stateless. As did the Hungarian Jews who escaped this country to improve their lot. He could have used his situation as a stranger in a series of strange lands to give Bloom a quality of otherness.

Joyce was interested in Hungarian culture from early on. He wrote an essay on the painting “Ecce Homo,” part of a massive triptych with a biblical theme by Hungarian artist Mihály Munkácsy, after he viewed it at a gallery in Dublin.

Bloom having a father from a country with a language that is impenetrable unless one takes the time to truly study it, a country that he had been forced to leave, clearly resonated with Joyce.

As Joyce scholar Heyward Erlich puts it in his review of “Joycean Unions, Post-Millennial Essays from East to West,” “In Eastern Europe, the frequent shifting of national boundaries, the forced and voluntary migrations, and, in the case of Hungary, the unusual Statue of James Joyce in Szombathely, Hungary, status of the language (Hungarian is August 15, 2021. Photo by nordantin / Shutterstock.com Uralic, not Indo-European) all served to energize complex, political, ethnic, and linguistic forces.”

Paying Homage In fact, Hungary takes Bloomsday pretty I’m not exactly sure how this connects In June 1929, the publisher of “Ulysses,” seriously. During Bloomsday week there to “Ulysses.” Perhaps it gave Bloom a the legendary Sylvia Beach, organized a was a concert at the Budapest Music dimension of otherness that enabled lunch in celebration of the book. Ireland Center. FUGA Budapest Center of Joyce to write about Dublin, the city of celebrated its first Bloomsday in 1954, Architecture held a Joycean art exhibition his birth, with a degree of distance.

50 years after the day Joyce met Barnacle, and a film screening of Joycean-inspired Whatever the reason, the novel is when Irish writers Patrick Kavanagh and music works. The Annual Bloomsday taken seriously in Hungary. I was Flann O’Brien paid homage to Joyce Festival in the city of Szombathely was surprised to discover that my partner, at locations mentioned in the book, rather more of a gala affair. who studied Hungarian language and including the famous Martello Tower It is this last event in Szombathely, literature, was obliged to study the book at Sandycove (now owned by Irish pop coincidentally – or perhaps not – the at university and pass an examination on warbler Bono) and Davy Byrne’s pub. oldest recorded city in Hungary, that it in the mid-1980s.

Given that Kavanagh and O’Brien holds the clue as to why Budapest is I would imagine that translating drank heroically throughout, perhaps they included in Ulysses: A European Odyssey. “Ulysses” into Hungarian is a feat wanted an excuse for a bit of what the Although it doesn’t explain why Budapest equivalent to climbing the south face Irish call the “craic,” or an excuse to go on is included and not Szombathely itself. of Anapurna wearing boxing gloves. a bender, as much as anything else.

As David Collard explains in his I’ll stick to watching my partner, who Today, Bloomsday celebrations are held recently published work “Multiple Joyce: loves Guinness, raising a glass next all over the world, including Hungary.

100 Short Essays About James Joyce’s time Bloomsday rolls around.

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www.bbj.hu

Budapest Business Journal | July 1 – July 14, 2022

Socialite | 31

Teaching and Preaching Tradition and Innovation at Tokaj The historic, worldrenowned Tokaj region is continuing to innovate to the extent that, more than “merely” a center of winemaking, it is also becoming a seat of learning.

ROBERT SMYTH

Following the establishment last year of the Viticulture and Oenology course at the University of Tokaj, the Tokaj Wine Business Institute (TWBI) is to launch a one-year Wine Business Manager program in September, through the university and in cooperation with the School of Wine & Spirits Business at Burgundy School of Business (BSB) in Dijon, France.

Successful completion of the Englishlanguage postgraduate program results in the award of a Wine Business Manager Diploma.

“Wine consumption worldwide has reached unprecedented levels, and the growth is far from over. At the same time, supply is outstripping demand, and in this competitive environment, solid professional skills are needed to achieve and maintain success,” said international wine academic Attila Fiáth, director of the Tokaj Wine Business Institute.

“Tokaj is tradition unto itself, so we combine this centuries-old authenticity with the fundamental knowledge of modern economics, including creative wine marketing, effective sales techniques, and digital solutions within this course at the TWBI,” he said.

This welcome initiative shows that the region is very much on the move, rather than resting on its laurels as once having been one of the world’s most famous wine regions. Fiáth, a professor at Budapest’s Corvinus University, brings plenty of business and wine experience to the program. It is also great to see Tokaj and Burgundy building vinous bridges.

“Burgundy and Tokaj, at first glance very different regions, actually have a lot in common: both world-famous regions are built on a synthesis of commitment to tradition and embracing modern wine trends,” said Steve Charters, Master of Wine and professor at the School of Wine & Spirits at BSB in Dijon.

“We believe we can contribute to improving the region’s competitiveness at TWBI with the same teaching approach that has worked in Dijon.”

Aerial panoramic view of vineyards of Tokaj wine region with town of Tokaj and River Tisza. Photo by ZGPhotograph / Shutterstock.com

Leaders and Pioneers

The course introduces students to current trends in enology and wine management while providing them with industryspecific business and economics skills that will enable them to become leaders and pioneers in the wine market at an international level, according to the program’s organizers.

“Tokaj is tradition unto itself, so we combine this centuries-old authenticity with the fundamental knowledge of modern economics, including creative wine marketing, effective sales techniques, and digital solutions within this course at the TWBI.” “The Wine Business Manager program is mainly recommended for young winemakers who seek an economic education and for commercial professionals with limited wine business knowledge,” said Fiáth.

He added that, due to the program’s uniqueness in Central Europe, students are also expected to come from neighboring countries.

One winery that already does the business and marketing side very well is Mad Wines. Having already dropped the accent from the “á” in Mád, the village where the winery is based, to emphasize the fun and wacky side of wine, it sells a snazzily designed bag-in-box Party Box

and cool cans containing Mad bubbles (in three different styles and colors), which serve to take the stuffiness out of wine and no doubt appeal to new consumers.

Its Mad Limited Edition 2018 has a smart chip installed, which connects with one’s smartphone, giving all kinds of information about the wine itself. It also enables the consumer to provide feedback on the wine.

Furthermore, the information is localized according to where the wine is bought. For example, if the wine is purchased in Japan, all the information is given in Japanese, including recipes for dishes to go with it, prepared by Japanese chefs. The wine itself has a nice balance between fruit and oak, with a fresh, juicy palate, and costs HUF 3,750 from shop.mad-wine.com.

The Mad winery has also recently cooperated with 15th-generation Austrian winemaker Lenz Moser to release an exciting new wine – Ma’d Moser MM5 Tokaj Furmint Dry, which is debuting now from the 2021 vintage.

The grapes were sourced from the vineyards of Mad Wine, located around the village of Mád, with 50,000 bottles, closed by a screw cap, made of the 2021.

Interest Rekindled

Moser was first taken to Tokaj at the age of 14 by his father. Seven years ago, in Austria, his interest in Tokaj was rekindled when he met wine communicator Rita Takaró, a Hungarian who lives in Austria and had previously lived and worked in Tokaj.

Last summer, Moser and Takaró went on a recce to Tokaj, and the pair teamed up with Károly Kovács, owner of Mad Wine, who brought his winemaker

Gábor Urbán into the project. The quartet’s goal is “to bring an exciting new interpretation of dry Furmint from one of the world’s great – yet forgotten – wine regions to national and international markets.”

Mozer explained that while everybody is talking about dry Furmint internationally, few have ever tasted it.

“I love dry Furmint because of its distinguishing characteristics: the high concentration of flavor and aromas; [it] is almost Riesling-esque, however completely different,” he said. He places the dry Furmint of the Tokaj region as in-between the Grüner Veltliner of his native Austria and German Riesling.

The wine has been given a 92/100 rating by James Suckling, the noted American wine critic, who commented on the “Extremely fresh nose of yellow apple, sliced pear and apple blossom. Ripe and generous, but also extremely refreshing, with focused juiciness that makes this modern dry Furmint very easy to enjoy. Long finish with serious power, lemon-zest freshness and a whiff of smoky minerality. Drink or hold.”

The alcohol is relatively high at 14%. “We would have liked it at 13.5%; however, in the end, we decided for the absolute quality and did not thin it down,” explained Moser. On tasting it, I found that the alcohol is really well integrated and didn’t burn whatsoever, with the wine soft and juicy with the residual sugar nicely balancing the acidity. It is available from madmoser.com.