Budapest Business Journal 3213

Hoteliers

Optimistic as ‘Old Order’ Returns

The president of the Hungarian Hotel & Restaurant Association (HH&RA), Tamás Flesch, discusses hope for this year among the challenges that remain and the opportunities for the future.  21

4th-largest Investor Country, USA Continues to Deepen Bilateral Trade

As the Hungarian Investment Promotion Agency makes clear, business links between Hungary and the U.S. investor community are long-standing and substantial.  14

Budapest’s Lufiland Experience Pumps up Balloon Art

At Budapest’s BOK hall until the middle of August, Lufiland is the work of worldfamous Dutch balloon master Guido Verhoef, a team of professional balloon designers and 150 volunteers.  36

A Love Letter to Budapest

Are we Entering New Monetary Policy Era?

At its latest rate-setting meeting, the central bank reduced the key interest rate in line with expectations but to a lesser extent than before. With this last cut, the interest rate reduction cycle that started in May of last year may have come to an end.  3

Thibaut Drege, the general manager of the Four Seasons Gresham Palace Budapest, looks back on 20 years of success at the landmark luxury hotel and what it is that he believes keeps it at the top with international travelers. 18

Presenting its 2023 results, Magyar Suzuki Corporation says production grew markedly, with a focus on hybrid models. The company outlined plans to introduce new EVs by 2030 and continue upgrading Esztergom.  9

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz, Gergő Rácz.

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THE EDITOR SAYS

IN PRAISE OF THE TOURIST DOLLAR

It is worth remembering, the next time you are forced to jump out of the way of a tourist riding a scooter, a bike with balloon wheels, or a Segway seemingly without regard for anyone else around them, that tourism matters. That tourist may not know much about the highway code (or driving with concern and care for pedestrians), but the dollar, euro, yen or renminbi in their pocket counts for something.

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According to the OECD “Tourism Trends and Policies 2022” report, tourism has long been a driver of the Hungarian economy. In 2019, tourism directly contributed 6.8% to the total gross value added and 9.5% of the national workforce at some 421,036 jobs. The impact of COVID-19 was, of course, significant, with estimates suggesting tourism GVA fell to HUF 2.194 trillion or 5.4% of the national economy in 2020. International tourism receipts fell to HUF 1.738 tln in 2021 (down 41.6% compared to 2019). Domestic travel began to rebound in 2021, and foreign tourism from 2022, accelerating through 2023.

According to the statista.com website (a statonerd’s dream, if ever there was one), tourism revenue is projected to reach USD 1.603 billion this year, with an estimated annual growth rate of 3.21% between 2024 and 2028. This is expected to result in a projected market volume of USD 1.819 bln by 2028.

No less a source than Hungary’s Central Statistical Office says the tourism sector generated 6% of the country’s GDP in 2022. Including multipliers, which factor in spillover effects, the tourism sector’s contribution to GDP reached 8.8%. The value added of the tourism sector came to 6.2% of the total for the national economy

and reached 9.1% when including multipliers in 2022. The commercial accommodation sector alone accounted for 1.9% of value-added, up from 1.6% in 2021. In absolute terms, the output of the tourism sector reached HUF 8.478 trillion, climbing 37% from 2021. Employment in the tourism sector rose 3.8% to 398,000 in 2022, accounting for around 10% of all workers. Black swan events aside, those numbers are only likely to climb. Budapest Airport thinks it will return to and surpass its pre-COVID passenger numbers this year. Several people involved in the tourism industry we spoke to in preparation for the Special Report inside this issue pointed to the state’s acquisition of Ferenc Liszt International as being a potentially significant milestone, both in terms of raising profile and boosting infrastructure. The hope is the state might finally push through the long-awaited direct rail connection between the city and the airport.

As I say, tourism matters. It also feeds into a Hungarian tradition of hospitality that dates back to La Belle Époque, when Hungary became part of the Grand Tour and survives today despite the best attempts of the communist era to kill it at source. With a flood of luxury hotels opening in the capital (many of them restoring palaces dating from that same  Belle Époque) and even spreading into the countryside, Budapest may even begin to shake off its reputation as a stag and hen party destination for hoards of drunken Brits. Well, you can but hope.

Robin Marshall Editor-in-chief

THEN & NOW

The black-and-white photograph, taken 44 years ago in 1980 and from the Fortepan public archive, depicts police officers on patrol with a dog near the entrance of the Siófok Open-Air Stage, keeping a watchful eye on the attendees of the concerts given that day by rock bands Omega, LGT, and Beatrice. The color picture from state news agency MTI captures two police officers on horseback in Tihany after a press conference on June 24, 2024, on the increased police presence at Lake Balaton. During the summer season, more than twice as many police officers are on duty at the lake as in other seasons.

Photo by Tamás Urbán / Fortepan

Photo by Boglárka Bodnár / MTI

1News • macroscope

Are we Entering a ‘New Era’ in Monetary Policy?

At its latest rate-setting meeting on June 18, the central bank reduced the key interest rate in line with expectations but to a lesser extent than before. With this last cut, the interest rate reduction cycle that started in May of last year may have come to an end.

Change in Average Earnings in Hungary, 2003-2024 (January-April)

Full-time employees; average monthly net earnings; HUF/month

As expected, the National Bank of Hungary (MNB) lowered its key interest rate by 25 basis points to 7% at its rate-setting meeting on June 18. The move aligned with expectations; market experts almost unanimously expected that the central bank would slow from the usual 0.5 basis points rate cuts seen in recent months.

No further cuts are expected from July. However, a few weeks ago, it seemed more likely that the final cut of 50 basis points would be in June and that in the second half of the year, the MNB would only make occasional cuts.

The current decision is not solely based on the development of inflation, since in May, although the consumer price index rose from 3.8% to

the rate of annual price increase was still lower than expected. But in the meantime, the financial market situation has become turbulent again. The most notable part of this was the weakening of the forint.

The international environment has become less favorable overall in the last month. The U.S. Federal Reserve once again became more pessimistic about inflationary processes, making the interest rate path more uncertain in the United States.

Meanwhile, the perception of the European economy worsened due, among other things, to the fact that the European Parliament elections caused domestic political uncertainty in several large member states. These factors also affect the interest rate policy of emerging countries, as investors have become more risk-averse. Market analysts also confirmed this.

Source: *Without benefits

“The development of the international financial market environment may have played the biggest role in the slowdown; the central bank also emphasized in the announcement that the willingness to take risks has deteriorated,”

Makronóm’s senior analyst Dániel Molnár said in a press release.

Strict Communication

Although the European Central Bank had started easing interest rates at its June meeting, at the same time, its communication had been quite strict, which heralds a cautious, smallerscale continuation of the interest rate reduction cycle, he added.

“Meanwhile, interest rate expectations related to the Fed shifted higher. The U.S. labor market remains strong, while inflation data also suggests that the price increase has not yet been fully suppressed in the world’s largest economy. For this reason, instead of the previously expected three interest rate cuts this year, the Fed’s decision-makers are now predicting one, or in favorable cases, two interest rate cuts. Higher U.S. yields limit the central bank’s room for maneuver, both in the case of the ECB and in emerging markets,” Molnár explained.

The MNB announced that starting in July, the central bank will have substantially less maneuvering room to reduce the base rate. Some parts of

the last paragraph of the announcement were changed, the expected interest policy of the major central banks was highlighted, and a further reduction of the base rate was omitted from the last sentence, as Equilor analysts emphasized in their reaction to the decision.

Those analysts also noted that MNB Deputy Governor Barnabás Virág had, once again, presented those risks to which special attention would be paid at the next rate-setting meetings.

“Among the global risks, he singled out the deterioration of international investor sentiment and the rise in volatility following the EP election. Meanwhile, the external interest rate environment may remain high for a prolonged period. Regarding domestic inflation, he mentioned the expected increase in core inflation and strong inflation expectations. Possible inflationary risks of strong wage dynamics are also monitored. In addition, he mentioned the importance of achieving the set budget deficit targets in a disciplined manner,” they wrote.

Changed Guidelines

As for the future, analysts expect some further drop in the key rate by the end of the year; however, the central bank’s guidelines have clearly changed.

“According to our expectations, the central bank’s interest rate reduction can only continue at a slower pace in

the coming months, and monetary steps will not necessarily take place at every meeting. In addition, much more attention will be paid to the international financial markets,” Makronóm’s Molnár said.

“The bottleneck in this regard may be the Federal Reserve’s monetary policy. According to our expectations, the interest rate reduction in the [U.S.] economy could begin as early as September, which would also expand the Hungarian central bank’s room for maneuver. Overall, we expect the Hungarian base rate to drop to 6.25% by the end of the year,” he added.

Nonetheless, the Monetary Council is expected to make a careful and datadriven decision from month to month, as indicated in the press release that followed the rate decision. According to this, instead of “further reducing the base rate,” it now decides on the “rate of the base rate.” So, in addition to the slight reduction, the pause in the interest rate cut cycle was also included in the forward guidance.

Deputy Governor Virág emphasized that the Monetary Council will decide month by month. The wriggle room will be narrow, and special attention will be paid to the stability of the money market, that is, to the exchange rate of the forint.

ZSÓFIA CZIFRA

Academia Offices 80% Let Says Asset Manager ConvergenCE Real Estate Matters

Colossyan, one of Hungary’s fastestgrowing startups, has signed a 1,000 sqm lease at Academia Offices, located in the historic center of Pest overlooking the Danube. Six months after its official opening, Academia has exceeded 80% occupancy, reflecting the increasing demand for centrally located, future-proof office space, according to ConvergenCE, developers of the project.

GARY J. MORRELL

A biweekly look at real estate issues in Hungary and the region

The deal follows an earlier lease agreement with another emerging local start-up, Shapr3D.

“Choosing Academia Offices was no accident. We follow an officefirst policy, making the quality and location of our office space crucial to provide the best environment for our employees,” said Dominik Kovács, CEO of Colossyan.

The 12,500 sqm Academia in Central Pest aims to receive Well “Gold” and “Platinum,” Breeam

Uncertainty in the Office Market

Both tenant and landlord sides in the Budapest office market are characterized by uncertainty and a wait-and-see approach, as the key players will be subject to ESG reporting obligations from next year.

Although the guidelines are already known, the detailed regulations are still awaited, says Zsolt Kákosy, senior director of Icon Property Management. He argues that the new requirements will intensify market polarization, with those who prepare in time for the changes coming out ahead.

“COVID-19 has modified the office usage habits, causing some uncertainties for both tenants and landlords. Unemployment is low, the companies are fighting for highperforming employees, and they are aware of the fact, that not all co-workers are ready to return to the office due to the rise of remote work,” Kákosy argues.

“Those companies that have decided to move in response to these changes typically lease smaller office spaces and do not expect 100% attendance. However, many are still waiting, working on an optimal work arrangement and a corresponding workplace environment,” he says.

“Uncertainty is also present among tenants and landlords because the detailed regulations for compiling sustainability reports based on ESG requirements have not yet been established. Meanwhile, meeting the new requirements will require further investments and developments on the owner’s side,” Kákosy says.

“However, ensuring the necessary financial resources is not a simple task nowadays due to high yields and interest rates posing challenges for both the credit and equity sides, which are also affected by changes

In-Use “Excellent,” and has already obtained WiredScore “Gold” and Access4You. The investor, Europa Capital, delivered Academia Offices as part of a redevelopment and refurbishment of a fin de siècle listed building in partnership with ConvergenCE, the asset manager. ConvergenCE estimates that the development will be close to fully leased in addition to achieving its Well third-party accreditation by the end of the year.

in property values and lower price expectations from buyers,” he argues.

“In this difficult market environment, it will become clear who the stronger capital and credit-worthy players are; those who will be able to make the investments required by ESG requirements (potentially in collaboration with tenants). As a result, these players will gain a competitive advantage over less capital-strong or overleveraged players,” Kákosy adds.

Office stock is approaching 4.3 million sqm, according to the Budapest Research Forum (the BRF, which comprises CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary). Cushman & Wakefield says approximately 178,000 sqm of new space is expected to be delivered in 2024, exacerbating vacancy rates. Office vacancy has risen to 13.8.

The view from a property management perspective is that,

Avico Group Tops Out Univery Residential Project

Avico Group has celebrated the topping out of Univery, its 112-apartment project in Józsefváros in District VIII. The energy-efficient building, located near prominent universities, was designed with the needs of young people in mind. The condominium is expected to be handed over in the first quarter of 2025, according to the developer.

Semmelweis University, Óbuda University, Pázmány Péter Catholic University and the Ludovika University of Public Service are all within walking distance of the Univery project. The six-story building, designed by Casiopea Group, is described as aligning with a modern urban lifestyle. It has an “A+” energy efficiency rating.

“The rehabilitated areas of District VIII continue to develop at a tremendous pace, so there is still a huge demand for apartments in the area, both for owner-occupation and for investment purposes,” says Ákos Rónai, sales director of Avico Group.

“The proximity of the universities, Rákóczi tér and Orczy kert make the development particularly attractive for young people and investment buyers. Therefore, we have aimed to meet the expectations and tastes of the new generations in terms of style and layout,” he adds.

Avico Group has a portfolio of nearly 4,000 apartments and is also involved in developments in Districts XVIII, IX, XI, and XIII.

in uncertain times, PM companies have a mediation role between tenants and landlords and coordinate between financial, legal, and market demands and technical possibilities.

Properties whose owners have already ensured a high level of service quality through ongoing maintenance and renovation, the involvement of the right experts and appropriate tenant dialogue, will appreciate in value. The introduction of ESG standards is expected to cause both a decline and an increase in vacancy rates, especially in the less capital-rich and lower segment of the office market.

Kákosy concludes that the tightening of sustainability requirements could start a wave of renovations, possibly together with tenants. The costs, considering the entire life cycle of buildings, are much lower than those associated with maintenance and operation.

Sustainability and return on investment aspects must also be balanced when implementing these activities.

The Academia Offices, a classical renovated building by Europa Capital and ConvergenCE.

Ukraine

EU Finds Workaround on Hungarian Funding Veto Roundup Crisis

The European Union determined that it would use the EUR 1.4 billion in profits from the sale of frozen Russian assets to aid and arm Ukraine without the input of Hungary at a meeting of foreign ministers in Luxembourg on June 24.

The fate of the proceeds from assets frozen in the wake of Russia’s invasion of Ukraine in February 2022 had already been decided by the EU in May, with 90% allocated to military aid. However, diplomats told international news wire Reuters that Hungary had been holding up approval of the necessary legal measures. Now, the EU seems to have devised a legal workaround to sidestep Hungary’s objections.

At the meeting of foreign ministers, EU chief diplomat Josep Borrell explained that the usual unanimity for foreign policy decisions was not required in this instance. Because Hungary had abstained from an earlier agreement to set aside the proceeds from Russia’s frozen assets, it “should not be part of the decision to use this money,” he said. “We will now speed up without having this blockage,” Borrell told reporters after the meeting.

This procedure could also set a precedent, potentially enabling G7 leaders to raise a

USD 50 bln loan

for Ukraine by December, designed to be paid off by future proceeds from the sale of the frozen assets.

Although concerns from the United States and other G7 partners about potential obstruction on the part of Hungary had caused significant delays in the negotiation of the loan since the decision was made at a summit in Italy earlier this month, the legal workaround for the EU use of proceeds seems likely to suffice in guaranteeing the payout of the loan.

Although Minister of Foreign Affairs and Trade Péter Szijjártó listened without objection to Borrell, who at one point told the Hungarian representative,

“We are going to do this without you,” according to diplomats present, Szijjártó later expressed his outrage with the method in a post on his Facebook page.

Disregarding Hungary

“That EUR 1.4 bln is practically revenue from seized or frozen Russian assets, and as Hungary abstained from the first such vote on their use, the council’s legal service, Brussels, the bureaucrats and some member states thought that was a sufficient basis to disregard Hungary’s decisionmaking right and ignore its position on the matter,” Szijjártó said. “That’s clearly a red line.”

Adding that the EU wanted to continue to “cross red lines” with a proposal to train Ukrainian soldiers in the territory of Ukraine, in addition

to other countries, Szijjártó said, “That is unacceptable for us, and we will protest it with all available means.”

Yet, as Hungary takes over the EU’s rotating presidency from July 1,

EU countries are considering more ways to insulate the bloc’s decisions from Budapest’s persistent obstruction, which has blocked or delayed a record number of foreign and security policy issues in recent months. Hungary is currently holding up seven decisions related to Ukraine worth EUR 6.6 bln, partially as a way to finagle access to EU funds frozen over rule-of-law concerns.

“It’s got to the point where nothing happens without thinking about how they could ruin it,” a senior EU diplomat involved in negotiations with Budapest told the Financial Times. “We’re at a moment when it’s either give up on ambitions or think creatively to cut them out.”

Such creative propositions run the gamut from amending EU treaty provisions to more passive-aggressive tactics. Some proposed amendments include allowing some decisions to be made by a qualified majority instead of by unanimity or requiring further justification from countries if they exercise their vetoes.

Others have suggested boycotting ministerial meetings held in Hungary or issuing confidential annexes to EU documents that outline alternative means of reaching an agreement among other consensus-holders. Others are still openly considering advancing an Article 7 procedure against Hungary, revoking the country’s voting rights.

UAE Economy Minister Discusses Opportunities in Budapest

The Minister of Economy for the United Arab Emirates, Abdulla Bin Touq Al Marri, spoke about investment opportunities in the Emirates at an event in Budapest on June 19 jointly organized by the embassy and the Hungarian Export Promotion Agency.

The event was called a Majlis, a traditional gathering space that is not just a venue but a symbol of social and cultural exchanges to encourage easy interaction among guests. The embassy said the Majlis

highlights the values of hospitality and open dialogue, promoting community bonding and decision-making.

Attended by numerous government officials and business representatives, on this occasion, the Majlis provided a platform for the Emirati minister to discuss the economic opportunities and benefits of doing business with his country.

The economy minister presented an overview of the UAE’s economic landscape, emphasizing the nation’s strategic initiatives to foster economic growth and diversification.

Al Marri highlighted the UAE’s focus on developing a robust non-oil sector to reduce its dependency on fossil fuel revenues. He noted that significant strides have been made in various industries, including technology, tourism, and finance.

“The UAE’s non-oil sector has shown remarkable growth, contributing significantly to our GDP and showcasing our commitment to economic diversification,” the Emirati politician said.

Advanced Infrastructure

The UAE’s strategic location as a global trade hub was another critical point in Al Marri’s presentation. He discussed the country’s advanced infrastructure, which supports efficient logistics and connectivity. This has been pivotal in attracting FDI and establishing the UAE as a preferred destination for international businesses.

“Our state-of-the-art infrastructure and strategic position make the UAE an ideal gateway for businesses looking to expand into the Middle East and beyond,” Al Marri explained.

The minister also elaborated on the UAE’s proactive approach to fostering innovation and entrepreneurship. Initiatives such as the UAE Vision 2024 and the National Innovation Strategy have created a conducive environment for startups and tech companies.

Al Marri highlighted several success stories of startups that have thrived in the UAE’s dynamic ecosystem, contributing to the country’s economic resilience and adaptability.

A moderated conversation and Q&A session followed, led by Tamás Fellegi, a Hungarian politician, jurist, political scientist, and businessman. One of the key topics was the UAE’s commitment to sustainability and green growth. Al Marri mentioned that the UAE has invested heavily in renewable energy projects and is continuously working towards reducing its carbon footprint.

“Sustainability is at the core of our economic policies. We aim to balance economic growth with environmental stewardship,” he said.

Questions from the audience ranged from investment opportunities in the UAE to the country’s regulatory framework. Al Marri highlighted the Emirate’s business-friendly policies and the various incentives available to foreign investors.

NICHOLAS PONGRATZ

GERGELY HERPAI

Viktor Orbán (left) talks with French President Emmanuel Macron ahead of their meeting at the Elysée Palace on June 26. The two leaders were reviewing the objectives of the six-month Hungarian EU presidency, which starts on July 1.

Photo by Zoltán Fischer MTI / Prime Minister’s Press Office

Hotel Owners Increasingly Looking for Sustainability Accreditation Green Matters

A monthly look at environmental issues in Hungary and the region

CEE hotel assets are significantly behind the sector in Western Europe concerning ESG as players in the region still tend to be private investors with less ESGinclusive strategies. In Budapest, only about 2% of hotels were sustainability accredited at the turn of the year.

An exception to the above trend is Poland, where several leading institutional investors are active in the hotel market and, therefore, require ESG-compliant assets as a central tenet of their acquisition policy, according to real estate consultancy Cushman & Wakefield and law firm CMS in their “Hotel Investment Scene in CEE” report for 2023.

“ESG is becoming a liquidity factor for hotel real estate as it affects the pool of potential buyers and [the] ultimate exit strategy. Accordingly, all owners and investors should consider investing in ESG as it is likely to improve the value of the asset and can generate relatively high returns while helping the planet,” the report comments.

ESG features are crucial for more significant institutional and branded hospitality investments. They not only align with existing corporate values but also attract a more conscientious clientele, driving long-term business. For instance, hotels that cater to multiple market segments can benefit as Mice (meetings, incentives, conferences, and exhibitions) organizers, leisure groups, travel agents, and corporate clients increasingly prefer hotels with strong ESG practices.

Nevertheless, the process will be slower for smaller standalone properties until they begin to prioritize it. ESG legislation is in its infancy in Europe, focusing primarily on larger players; however, it is expected to evolve. The question is whether ESG criteria becomes a chapter in management and rental agreements between hotel owners and operators, says Robert Székely, hospitality and leisure expert at the consultants, Newmark VLK.

Wing says it focusing on sustainability throughout the various market sectors in which it works and is seeking Breeam “In-use” and Access4you accreditation for

the Ibis & Tribe hotel component of its Liberty mixed-use project. The developer is aiming for Breeam “In-use” and Access4you at the existing Ibis Styles Budapest Airport and Breeam “Good” at the 167-room Tribe Hotel Budapest Airport, due to open in 2025.

It is targeting Breeam “Very Good” for the Hotel Indigo Budapest Andrássy, due to open in Q2 2028 with 103 guest rooms, and the Holiday Inn Express Vágóhíd, set to open in early 2027 in Pest’s District IX, with 162 guest rooms.

Getting Certified

Several other hotels in Hungary are already certified or going through the process with the U.S.-based Leed (Leadership in Energy and Environmental Design) or U.K.based Breeam (Building Research Establishment Environmental Assessment Methodology) third-party accreditation systems.

These have already become the norm in the higher strata of the CEE and Hungarian office and industrial sectors. The expectation is that they will also

be increasingly utilized in the top level of the CEE hotel markets as operators are increasingly cost-conscious and concerned with energy and materials use. Further to that, ESG issues are impacting the practices of hotel operators, developers and investors.

In Budapest, the five-star Kimpton Bem Budapest, the first Kimpton branded hotel in the region, located in the historic center of Buda and due to open this year, is in the process of obtaining Leed accreditation.

Outside of Budapest, the Hilton Garden Debrecen City Center, due to accept its first reservations in October, is doing the same.

Other green certification systems focus on the sustainability of the hotel operation. For example, the InterContinental Hotel Budapest has achieved Green Globe Solutions accreditation. Another IHG hotel, Crowne Plaza Budapest, part of the Westend shopping center, was recently certified by Green Globe for designing and implementing a Sustainability Management Report. In the countryside, the five-star

ESG Regulations Impacting Office Markets

As many as 1,255 ESG regulations have been introduced worldwide since 2011, Colliers says in its report “ESG in your Office. A Guide for Tenants.”

“A sustainable development policy in office real estate also means keeping existing buildings and rental space in the best

possible conditions. It is also important to create optimal conditions for occupants. These goals should be pursued using available resources and materials sourced with the least possible harm to the environment and people, with a balance between cost and effect achieved.

boutique Minaro Hotel Tokaj MGallery, in the UNESCO World Heritage winemaking region, has been awarded Green Globe certification.

Founded in 1992, the sustainability awards system has grown to become the world’s leading certification for the sustainable operation and management of travel and tourism. Based in Los Angeles, California, Green Globe Certification has a network of auditors covering more than 80 countries.

Remaining Relevant

“ESG features are increasingly central to hotel development, but they rarely point further than focusing on environmental sustainability. Adopting green building practices, energyefficient technologies, and waste management systems is becoming a standard expectation to remain relevant for a wider buyer pool in the future,” concludes Attila Radvánszki, principal director at Horwath HTL Hungary.

Some Hungarian hotels are undergoing Well Certification and Well Health Safety Rating, but these projects remain private until the targeted certification is achieved. Adapted from features in the Well Building Standard that focus on facilities maintenance and operations, the health and safety rating is designed to guide and empower the actions of large and small businesses alike in taking the necessary steps to prioritize the health and safety of their staff, visitors and stakeholders.

It also serves as an annual process that supports efforts to promote people’s long-term health and safety, says Regina Kurucz, an architect and certifications advisor.

“The Well Health & Safety Rating supports implementing Hungarian regulations for a hotel’s facility maintenance, for example, legionella management, regular water quality assessment, cleaning and emergency preparedness,” she explains.

“The rating includes more than 20 features across five action areas. To earn the rating, projects must achieve 15 points across multiple themes: cleaning and sanitization procedures, emergency preparedness programs, health service resources, air and water quality management, stakeholder engagement and communication,” Kurucz adds.

It is worth remembering that changes can be made in buildings of all ages,” the report says. Even small changes in office space can make it easier to implement sustainable policies such as water efficiency, lowering water consumption, waste management efficiency and impact employee comfort, health and wellbeing, says Colliers.

GARY J. MORRELL

The five-star Kimpton Bem Budapest, due to open this year in Buda’s historic center, is seeking Leed accreditation.

Sustainable and Inclusive Growth ‘Well Within Hungary’s Reach,’ IMF Says

An International Monetary Fund (IMF) mission has presented its findings on the strengths and weaknesses of Hungarian economy at the conclusion of the so-called Article IV consultation for 2024.

The mission, led by Anke Weber and and comprising Chris Jackson, Jakree Koosakul, Augustus Panton, and Atticus Weller, visited Budapest from June 11-21 to conduct discussions with the Hungarian authorities.

In their concluding statement, the IMF team acknowledged that Hungary is emerging from a period of shocks: The pandemic, Russia’s war in Ukraine, and crisis-related stimulus widened fiscal and external imbalances and “triggered doubledigit inflation in 2022,” the team said.

Effective monetary policy response, aided by falling commodity prices and a tighter fiscal stance in 2023, had seen inflation decline rapidly, while the labor market and financial sector have remained resilient.

The report also noted that a large current account deficit in 2022 had turned into a surplus, and output is starting to recover.

‘Challenges Remain’

However, it also noted that “significant challenges remain. The fiscal deficit and public-debt-to GDP ratio remain well above 2019 levels, and various temporary windfall taxes have created investor uncertainty. Interest rate caps and subsidized lending measures have distorted market rates, and significant

state ownership in key sectors impedes competition,” the IMF team found.

Despite some progress, the ongoing negotiations on the European Commission’s super milestones, including the assessment of governance conditions, are delaying the disbursement of some EU funds that are vital for supporting digitalization, regional integration, and the green transition.

“With the right policies, sustainable and inclusive growth is well within

François Berisot Appointed CEO of

François Berisot has been named the new CEO of Budapest Airport Zrt., effective June 6. Berisot has more than two decades of international aviation experience, having spent the last five years as the CEO of Nikola Tesla Airport in Belgrade, part of Vinci Airports.

“François Berisot is a highly qualified professional in the airport industry, covering operations management, commercial and market development, infrastructure renewal and expansion, strategic planning, finance and construction. He brings extensive knowledge of airport operations gained through multiple relevant roles and experience, most recently as the CEO of Belgrade Nikola Tesla Airport,” Budapest Airport said in a press release. Previously, Berisot served as the deputy managing director and chief financial officer of TAV Construction

in Turkey. Earlier, as business development project director at Vinci Airports, he was responsible for supervising major airport projects (including PPPs, airport acquisitions and privatizations). Before joining Vinci, he held several operational positions, including as COO of Queen Alia International Airport in Amman, Jordan.

Berisot succeeds Kam Jandu, the former CEO of Budapest Airport Zrt., who joined BUD in 2009 and previously worked for the company as aviation director and then as CCO.

“The company would like to thank Kam for his immeasurable contributions to BUD’s achievements,” the airport operator said.

Hungary’s reach. Rebuilding buffers through a credible and growthfriendly fiscal adjustment plan would reduce sovereign risk and support the central bank in its disinflation efforts,” the team found.

“Such adjustment should be rooted in a medium-term budget process with a more balanced revenue structure and a growth-friendly spending mix. Stability-oriented macro-financial policies should raise countercyclical capital buffers and allow market forces to drive credit allocation. Coordinated structural reforms are key to addressing Hungary’s lagging productivity relative to the EU average and accelerating progress toward the green transition,” the concluding statement ends.

What is an Article IV Concluding Statement?

The Article IV consultations focus on creating “orderly economic growth with reasonable price stability” among IMF member countries. The concluding statement describes the preliminary findings of IMF staff at the end of an official visit. The views expressed are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings from their mission, the team will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Budapest Airport

Changing Hands

A consortium of the Hungarian stateowned Corvinus Zrt. and the French co-investor Vinci Airports acquired ownership of Budapest Airport Zrt. on June 6 from AviAlliance and its co-shareholders GIC and CDPQ.

According to Hungarian news agency MTI, the Hungarian State will hold an 80% stake in Budapest Airport Zrt., while Vinci will have 20%. The purchase price was put at

EUR 3.1 billion.

Budapest Airport experienced substantial growth in passenger traffic under the ownership of AviAlliance, nearly doubling the passenger total from 8.4 million in 2008 to 16.2 million in 2019. It expects to reach those levels again this year.

The previous shareholders had invested more than EUR 700 million in the expansion and development of the airport since 2007. Despite the COVID-19 pandemic, more than EUR 200 mln has been invested in improving airport infrastructure and passenger comfort since 2020 alone.

According to AviAlliance, developing the airport over the years has benefitted the entire country, contributing an estimated EUR 2.85 billion to the Hungarian economy in 2022, which is approximately 3% of Hungary’s GDP.

François Berisot

Photo by Poetra.RH / Shutterstock.com

2 Business

Production and Share up at Magyar Suzuki, Despite Shrinking Market

Presenting its 2023 results on June 12, Magyar Suzuki Corporation says production grew markedly, with a focus on hybrid models. The company outlined plans to introduce new electric vehicles by 2030 and continue upgrading its Hungarian factory.

The plant in Esztergom (49 km northwest of Budapest by road) produced more than 163,338 autos, with 92.9% exported to 123 countries. This marked a 24.3% increase in production volume compared to 2022 and a 33.9% rise in total sales revenue, reaching EUR 2.87 billion. Net revenue from domestic sales was EUR 272.6 million, while export sales contributed EUR 2.6 bln.

The company had after-tax revenues of EUR 141.7 mln, which it placed in retained earnings and will reinvest. Magyar Suzuki will pay no dividends on the 2023 result Currently, two models, the Vitara and S-Ccross, are being produced in Esztergom and are only available with a hybrid drive system for the European markets.

Masato Atsumi, CEO of Magyar Suzuki Zrt.; Róbert Krisztián, deputy CEO; Ildikó Fejesné Gyurján, chief operating officer for HR, finance, and IT; and head of communications Zsuzsanna Bonnár-Csonka all spoke at the press conference, discussing the company’s past year and future outlooks.

“The plant’s success is highlighted by the production of 160,338 cars, with 88.5% hybrids.

In 2023, the Vitara and S-Cross models were particularly notable, with the Vitara being more popular in-ternationally and the S-Cross favored by Hungarian buyers. These hybrid models have been crucial in maintaining high production levels,” Krisztián explained.

The deputy CEO added that, despite a shrinking Hungarian new auto market in 2023, which saw a 3.4% decrease in registrations, Suzuki managed to increase its market share to 11.3%, or 12,167 vehicles, with 51% of these sales going to corporate and institutional customers. The resilience of the Suzuki brand is noteworthy, reflecting a robust strategic approach, Krisztián said.

Significant Investment

Magyar Suzuki also made significant investments at Esztergom amounting to EUR 55 mln in 2023 to enhance production capabilities and sustainability efforts. These are part of a broader strategy to modernize the plant, which remains the Suzuki Motor Corporation’s only European manufactur-ing base. The company says its continuous investment in technology and infrastructure demon-strates its commitment to maintaining a competitive edge in the automotive industry.

In addition to the autos produced in Esztergom, the company sold 894 units of the Swift, 252 units of the Ignis, 86 units of the Swace (a hybrid estate car based on the Toyota Corolla Touring Sports), and 20 units of the plug-in hybrid Across SUV in Hungary in 2023. All models are already in line with forthcoming regulatory changes. From July 7, the European Union is making the instal-lation of more driver support systems mandatory.

“The Vitara model underwent a significant renewal, with the four millionth Suzuki car, a hybrid Vitara,

The Japanese parent company has invested more than EUR 2 bln EUR in Hungary since 1991. In recognition of more than three decades of work, Magyar Suzuki Zrt. was presented with an “Investor Lifetime Achievement Award” by the Hungarian Investment Promotion Agency in February 2024.

Suzuki Joins Dual Training

With the opening of the Suzuki Education Center in September 2023, the company joined the dual training system, thus focusing on training the younger generation and skilled workforce alongside university collaborations and internship programs.

The firm’s marine and motorcycle divisions also showed impressive growth. The marine division sold 497 boat engines in 2023, maintaining its market leadership in Hungary and the region. Meanwhile, the motorcycle division saw an 18.8% increase in sales, with 372 new two-wheelers delivered to customers, securing a 5.7% market share in Hungary.

Magyar Suzuki believes it faces a challenging year ahead, with expectations to sell around 130,000 cars in 2024, a decrease of around 30,000 from last year. This anticipated decline is at-tributed to the stabilization of dealer inventories. Despite this, the company remains optimistic about its long-term prospects. Suzuki plans to introduce five electric models by

2030,

rolling off the production line on Feb. 8, 2024,” Atsumi told the press conference. Similarly, the S-Cross celebrated its

500,000th unit

produced in Esztergom in September, further solidifying its popularity among Hungarian consumers.

Magyar Suzuki insists it has made strides towards sustainability by inaugurating a solar power park in February 2024, the culmination of a two-year project that represented an investment of HUF 778 mln. It is expected to save the company approximately HUF 270 mln annually and reduce CO 2 emissions by more than 1,700 tonnes.

with aspira-tions for the Esztergom plant to play a pivotal role in their production. Esztergom will also see further investment this year, focusing on technology and equipment up-grades, automation, and decarbonization (waste heat utilization) in the bumper, painting, and welding plants.

“The company’s strategic focus on innovation and sustainability is further evidenced by the con-tinuous investments planned for 2024, totaling EUR 75 mln. These investments aim to enhance the production processes and introduce new technologies, ensuring that the Esztergom plant remains at the forefront of automotive manufacturing in Europe. The investments reflect a forward-looking approach, preparing the company to meet future challenges and market demands,” Atsumi said.

Róbert Krisztián, deputy CEO of Suzuki, presenting the 2023 results.

From left: COO Ildikó Fejesné Gyurján; CEO Masato Atsumi; head of com-munications Zsuzsanna Bonnár-Csonka; and deputy CEO Róbert Krisztián.

Photo by Magyar Suzuki

Photo by Magyar Suzuki

Cloud Could Boost the Economy, but Not Just Yet

The rapid evolution of digital technology and services has seen many innovations hyped, then becoming rapidly obsolete, and disappearing. Cloud technology has been an exception, albeit one helped by other technologies.

With digital data growing exponentially, companies found that physical storage became insufficient. Meanwhile, internet connections became ever more reliable and capable of large data transfer, which paved the way for remote data storage. Thus, storage becomes less of a hardware issue and more of a service.

Where exactly the data was stored became less relevant, leading to the coining of the term “the cloud” as something hidden in a complicated mesh of electrons, bits and bytes, optical cables and server racks. As with all other solutions, the cloud is not a magic wand, a universal tool for all companies and economic sectors. But for many, it gives a cost-effective and competitive advantage, one not fully harnessed by Hungarian companies, according to the “Cloud Technologies in Hungary: Economic Impact Study,” compiled by the ICT Association of Hungary (IVSz), Deloitte and Bell Research. According to the “Digital Decade EU” report, published annually, 44.9% of Hungarian companies use cloud technologies, not far below the EU average of 45.2%. However, this does not imply a growing trend in Hungary; larger companies use cloud technologies more than smaller ones. Barely one-third of the companies with up to nine employees are “on the cloud,” while 81.9% of companies with 250 employees or more use cloud technologies.

In terms of use, transport and storage (55.1%) and financial and services (37.78%) are the most prominent sectors. Compare that with agriculture and mining, where only 28% use the cloud. The most significant inhibiting factors are lack of competence, gaps in understanding, data security concerns (a long-held worry), budget constraints, regulatory difficulties and contractual obligations.

Data security concerns are, indeed, often mentioned in relation to cloud technologies. During an event hosted by IVSz to present the “Cloud Technologies in Hungary” survey, Miklós Zaránd, a technology consulting partner at Deloitte Hungary, dismissed those fears.

Stronger Security

“Current cloud solutions allow a wide range of control and regulation of our data; also, their cybersecurity tools are significantly stronger than on-premises solutions,” Zaránd said.

According to the authors of the study, encouraging the use of the cloud is also of strategic importance from the point of view of the national economy: the specific annual revenue per employee of Hungarian companies using such services is almost HUF 2.4 million higher than that of their competitors who do not use such services.

Based on this, a further rise in cloud use in the next 10 years would contribute an average of 1.7-2.7% annually to the Hungarian GDP (compared to 2023),

ICT Sector Development

depending on whether the government’s attitude towards the cloud is neutral or supportive. The difference between the two values means a GDP surplus of about

HUF 7 trillion

over 10 years.

The perspectives are bright, but the ICT sector in the Central and Eastern European region still needs to catch up with the West. During the IVSz event, Csilla Stéger, senior partner at PwC, highlighted areas in which the CEE region is already ahead, such as the share of employment in the ICT sector.

In other, more significant areas, Western Europe leads: Productivity here is higher, at EUR 135,512 per person compared to EUR 45,351 in CEE.

“Furthermore, Central and Eastern European countries record weaker results in digitalization of enterprises and individuals and indicators such as e-commerce sales, cloud services and big data use, and e-government activities of individuals,” Stéger noted.

The research and development expenditure is also very weak in CEE countries, especially Bulgaria and Romania, but Hungary is not much better.

Eliminating Obstacles

“Activities in this area should also focus on supporting startups engaged in cuttingedge initiatives. This includes financing, incubators, hubs, accelerators, and mentorship programs, as well as eliminating regulatory obstacles so that innovative businesses can grow,” Stéger argued.

Returning to the “Cloud Technologies in Hungary” study, artificial intelligence cannot be avoided when discussing cloud technologies. The study states that the joint application of AI and cloud technology creates economic and business conditions that justify the coordination of their development: machine learning combined with cloud technology means rapid and large-scale innovation.

The cost implications of an average AI computing time requirement in the case of locally installed infrastructure investment is much higher than renting

the same computing time in the cloud. In light of this, the widespread acceptance and routine use of cloud technology is an irreplaceable condition for the realization of the economic benefits expected from AI, the study states.

Having said all that, how can the state administration support the adoption of cloud technology in Hungary? According to IVSz, appropriate government regulations and investments can encourage the use of cloud technology. The transition of governments to cloud services not only fosters innovation but also establishes high security and regulatory standards that can promote trust and acceptance of cloud technology in the private sector.

“This study also clearly proves the economic benefits that can be achieved by introducing the cloud, so it is essential that we take quick steps to spread the technology for the sake of the entire national economy,” IVSz president Balázs Vinnai said.

“In our opinion, it is necessary to develop a national cloud strategy along the lines of the Cloud First directive, and it is also worth changing the attitude according to which, in terms of data security, data must be kept within the territory of the country. If we continue to do so, due to the size of our country, we will not be able to create a cloud that can be operated economically,” he said.

“Another important lesson from this research is how much support smaller domestic companies need to introduce technology. Here, in addition to ensuring the availability of resources, we must also pay attention to attitude formation and education so that we can achieve a real, long-lasting effect,” Vinnai concluded.

BALÁZS BARABÁS

Central and Eastern Europe1 Western Europe2

VLG’s Secrets to Success in the Cable Industry

László Vető, CEO of VLG Cables Hungary, discusses the key to the company’s success in the cable industry, revealing how focusing on efficiency, unity, partnership, and innovative strategies has made it a strong market contender in Europe.

BENCE GAÁL

BBJ: Can you elaborate on how VLG’s integration into the Meinhart Group has impacted your operations and market reach?

László Vető: VLG has enhanced its supply chain efficiency and procurement capabilities by aligning with Meinhart’s extensive network and resources. This integration has provided us better access to top-quality suppliers, ensuring competitive pricing and superior product quality. As a result, we have strengthened our position in the market, increasing our share to about 25%.

In Hungary, particularly at our strategically located facility on the M0 orbital motorway around Budapest, we have optimized our logistical operations, enabling us to deliver products swiftly and efficiently. This strategic positioning allows us to meet client demands within 24 hours, supporting large-scale development projects such as the Ferenc Puskás national soccer stadium and the Metro Line 3 renovations, as well as servicing industrial clients in sectors like battery and tire manufacturing, automotive production, oil sectors, railways, and general infrastructure development.

The integration has facilitated our expansion into international markets, focusing on industrial projects that require specialized cable solutions. This expansion has been pivotal in broadening our customer base and enhancing our service offerings.

Leveraging Meinhart’s best practices, global insights, and technological advancements, VLG has achieved higher levels of productivity and service excellence, reaffirming our commitment to quality and innovation tailored to our clients’ specific requirements.

BBJ: VLG emphasizes a strong sense of unity and partnership among employees and clients. How do you cultivate this culture, and how has it contributed to your success?

LV: We prioritize building solid relationships based on unity, partnership, and community spirit. This approach

extends to our interactions with clients, suppliers, and employees, whom we regard as integral members of the VLG family. We foster a collaborative environment where teamwork, open communication, and mutual respect are paramount. Regular team-building activities, transparent communication channels, and a supportive work culture ensure all employees feel valued and motivated to contribute their best efforts.

Our commitment to unity and partnership is evident in our internal operations and customer relationships. By treating clients as long-term partners, we strive to understand their unique challenges and objectives and offer tailored solutions that exceed expectations. In addition, we actively engage in community initiatives that support employee well-being and local outreach. We organize family days and support the education of our employees’ children, fostering a sense of belonging and loyalty among our workforce.

BBJ: The Meinhart Group positions itself as a “hero” brand, focusing on competence, competitiveness, and change. How does VLG embody these values in its operations and long-term strategies?

LV: VLG embraces the Meinhart Group’s core values (competence, competitiveness, and change)

BBJ: How do you ensure efficient delivery to meet client needs, especially for large-scale projects?

LV: Our extensive warehouse facilities have advanced inventory management systems, allowing us to maintain optimal stock levels and respond swiftly to client demands. We implement dedicated buffer stocks for large-scale projects and ensure 24-hour availability with fixed pricing and flexible call-off options. Additionally, VLG leverages the extensive inventories of Meinhart partner companies in Austria, the Czech Republic, Croatia, and Romania. This strategic collaboration enhances our logistical capabilities and reinforces our ability to meet client deadlines promptly, even for complex and geographically dispersed projects.

BBJ: How is VLG attracting fresh talent, and what makes the company an attractive workplace?

LV: VLG fosters a dynamic, supportive work environment that attracts top talent. Our commitment to employee development and learning opportunities bolsters our reputation as a reliable and flexible employer. Our inclusive culture emphasizes teamwork, collaboration, and mutual respect, creating a workplace where employees feel valued and motivated to contribute their best efforts.

as foundational principles that drive our business forward. VLG ingrains competence in our commitment to continuous improvement and employee development. We invest heavily in training programs and skills enhancement initiatives to ensure our team remains at the forefront of industry knowledge and expertise. Competitiveness is another critical pillar of our strategy, driving us to innovate and adapt to market dynamics. We continuously seek opportunities to improve efficiency, optimize processes, and enhance customer satisfaction. At VLG, we embrace change as a catalyst for growth and innovation. We proactively adopt new technologies, sustainable practices, and market innovations to anticipate and meet our clients’ evolving needs. This forward-thinking approach allows us to lead industry trends and pioneer new solutions. As a “hero” brand with a familiar spirit, VLG embodies these values in our day-to-day operations and long-term strategic initiatives. By aligning with Meinhart’s global vision and leveraging our local expertise, we deliver transformative solutions that drive positive change and create lasting value for our clients and stakeholders.

VLG’s commitment to growth extends beyond individual development to encompass sustainable business practices and corporate social responsibility. We actively engage in initiatives that promote environmental stewardship, social equity, and community outreach, aligning our corporate values with the aspirations of today’s workforce. VLG has become an employer of choice for new graduates and experienced professionals seeking a stimulating and rewarding career.

BBJ: VLG’s revenue was EUR 70 mln in 2023. What strategies have been most effective in driving such financial success?

VL: The main elements of VLG’s financial success are strategic initiatives prioritizing innovation, operational excellence, and client-centric solutions. Partnering with leading suppliers and maintaining solid relationships enables us to secure competitive pricing and superior product quality, driving profitability and customer satisfaction.

Furthermore, VLG’s robust financial position, supported by substantial capital reserves and prudent fiscal management, provides a solid foundation for sustainable growth and expansion. By leveraging the expertise and resources of the Meinhart Group, we capitalize on opportunities in both local and international markets, reinforcing our leadership in Europe’s cable distribution and logistics industry. Meinhart Group's consolidated turnover exceeded EUR 500 mln in 2023.

László Vető

Belgian Dinner 2024: Celebrating Diplomatic and Economic Ties

The Belgian Dinner 2024, hosted at the W Budapest, was a celebration of vibrant BelgianHungarian relations in the context of the trio presidency of the Council of the European Union, and particularly of Hungary taking over the helm from Belgium on July 1, for 6 months.

Organized by the Belgian Business Club in Hungary (Belgabiz), the event on June 14 saw a large turnout from the Belgian-Hungarian business community, emphasizing the strong bilateral ties and mutual respect shared between the two nations.

Belgabiz president Jim Bauters opened the evening and welcomed the guests before giving the floor to the special guest of the evening, State Secretary for Bilateral Relations Boglárka Illés of the Ministry of Foreign Affairs and Trade.

The state secretary praised Belgabiz for bringing together business leaders

and government representatives from Belgium and Hungary, creating an environment to further strengthen and deepen relations and exchanges between the countries in a spirit of friendship and solidarity. She also mentioned the fruitful work of the FlemishHungarian Joint Committee

Illés cited statistics illustrating the volume of economic relations between the two countries: Belgium was Hungary’s

14th

largest

trading partner in 2023; in 2021, 285 Belgian companies were active in Hungary, employing around 9,000 people. In 2022, the volume of Belgian investment in Hungary reached EUR 2.225 billion, making Belgium the 15th most important investor in Hungary.

She highlighted the importance of the Hungarian community living in Belgium, which numbers approximately 20,000 people.

Challenging Context

She remarked that the trio presidency operates in a highly challenging international context. The upcoming Hungarian presidency is committed to ensuring a smooth transition to the next legislative cycle and building a close and constructive relationship with the new institutional actors in Belgium.

Illés assured the audience that one of the priorities of the Hungarian presidency is to strengthen the competitiveness of the EU. She outlined the commitment of the Hungarian Government to the European Union as a solid foundation for successful cooperation between the member states.

Belgian Ambassador Jeroen Vergeylen spoke next, emphasizing the importance of Hungary’s thriving Belgian business community and the strong ties between the two nations. He expressed gratitude for the support of the event’s organizers, board members, and sponsors.

He reflected on the historical ties between Belgium and Hungary and highlighted the rich tapestry of encounters and exchanges that have shaped their relationship over centuries. He mentioned the “Buda” bridge in Brussels commemorating Buda’s liberation from the Ottomans in the 17th century with the help of Walloon and Flemish soldiers, the refugees who found shelter in Belgium after the 1848 revolution, World War II and 1956, and the humanitarian and economic aid that the two countries provided each other in difficult times.

Vergeylen highlighted that Brussels and Budapest are both Art Nouveau capitals, a European style par excellence. Finally, he spoke of Sándor Lámfalussy, “the founding father of the Euro,” which celebrates its 25th anniversary this year, who completed his studies in Belgium, obtained Belgian citizenship, and later became the first president of the European Monetary Institute.

Close Partners

The ambassador emphasized that Belgium and Hungary are close partners in the European Union and allies in NATO, benefitting from the security, stability and prosperity the two organizations have provided to citizens and companies. It is in such an environment, based on the rule of law, that businesses such as Soudal, which has celebrated its 25th anniversary in Hungary, can thrive.

Vergeylen labeled competitiveness as the most critical factor in a challenging environment of international competition, high energy and commodity prices, and pressure on the labor market. Companies need stability, predictability, and a level playing field to sustain and develop their business and deliver on the green and digital transitions while always including the social dimension. Belgian companies in Hungary are proving every day that success is achievable. The ambassador noted that the bilateral trade reached EUR 7 bln in 2023.

The guests were treated to a gourmet dinner with a Belgian touch, enjoying fine cuisine and the opportunity to network. The evening also featured a tombola with prizes donated by sponsors, adding an element of excitement and anticipation. The sponsors of the dinner included the Embassy of Belgium, K&H Group, S.I.C. Hungary, and Welpa Trans, along with Belga Sörmester, Reynaers Aluminium Kft., and Stardex.

BELGABIZ STAFF

From left, Belgian Ambassador Jeroen Vergeylen, State Secretary Boglárka Illés, and Belgabiz president Jim Bauters.

Belgian Dinner 2024 saw a large turnout at the W Budapest.

Quantum Computing: Insights From a Senior Research Scientist

Magyar Bosch Kft. and the Bosch Budapest Innovation Campus hosted the “Recent Advances in Quantum Computing and Technology” (ReAQCT) conference on June 19 and 20, highlighting groundbreaking developments in the field. Keynote speakers shared insights on the current state of quantum computing, its applications, and prospects.

BBJ: What are some of the most exciting recent advances in quantum technology that you highlighted at the ReAQCT conference?

TS: There have been numerous advancements. Notably, Bosch’s quantum computing group, in collaboration with IBM, has used quantum computers to calculate properties of new materials. Additionally, developments in error correction for quantum computers are particularly thrilling.

BBJ: How does Bosch’s research in quantum technology compare to other leading companies and research institutions worldwide?

TS: Bosch’s quantum technology team is reasonably sized but not on the same scale as Google or IBM. However, in materials simulation and quantum sensing, Bosch is competitive with other leading application companies.

and bad purposes, such as surveillance. However, it is not inherently dangerous.

BBJ: How do you foresee quantum technology influencing the future of artificial intelligence and machine learning?

ReAQCT gathered leading scientists and industry experts to discuss the latest breakthroughs. The event provided a unique platform for networking and knowledge sharing, emphasizing the potential of quantum computing to revolutionize various industries. Among the prominent speakers was Thomas Strohm, a senior research scientist and leading expert in quantum technologies at Bosch Research. The Budapest Business Journal BBJ spoke with him about the field and the conference.

BBJ: Could you briefly explain the current state of quantum computing and how it differs from classical computing?

Thomas Strohm: Quantum computing leverages the principles of quantum physics, which govern the behavior of microscopic particles like atoms and electrons. This is in stark contrast to classical computing, which relies on traditional physics. Quantum computers, although still in their nascent stage, promise to outperform classical computers significantly. For example, tasks like breaking encryption codes, which would take classical computers millions of years, could be completed by quantum computers in hours or days.

BBJ: How will Bosch integrate quantum computing into its operations?

TS: Quantum computers will initially impact our engineering activities, particularly in developing new materials. This includes creating better batteries, fuel cells, and more cost-effective magnets with fewer critical materials.

BBJ: Can you elaborate on the role quantum computers will play in developing new materials?

TS: Typically, this involves designing classes of materials and predicting their properties using computers. For many interesting new materials, classical computers fall short. Quantum computers can accurately simulate these materials, saving time and money in the synthesis process.

BBJ: What are the biggest challenges currently facing the field of quantum technology?

TS: Beyond quantum computing, quantum technology encompasses quantum cryptography and quantum sensors. Technologically, handling microscopic systems and ensuring they do not interact with their environment is challenging. Additionally, securing continuous funding for quantum research is a significant non-technical challenge.

BBJ: Are there examples of successful collaborations between Bosch and Hungarian academic institutions in the field of quantum technology?

TS: Bosch is actively seeking cooperation with Hungarian universities. This cooperation primarily involves Bosch colleagues contributing to teaching and research. We hope to expand these into more substantial joint projects based on connections made at this conference.

BBJ: What impact do you expect quantum computing to have on everyday life over the next decade?

TS: In this decade, the societal impact of quantum computing will likely be limited as we continue to develop useful quantum computers. However, in the next decade, we expect significant product improvements across many domains, including better batteries and fuel cells, as mentioned, and logistics services.

BBJ: How is Bosch preparing its workforce and infrastructure to adapt to the advancements in quantum technology?

TS: Our expert teams stay current with research and technical advancements. New employees often come from universities, ensuring a steady inflow of new knowledge.

BBJ: What potential risks or ethical considerations are associated with the widespread adoption of quantum technology?

TS: Like any technology, quantum technology can be used for both good

TS: AI could aid in developing quantum technologies and vice versa While some claims suggest quantum computers could accelerate specific AI processes, convincing arguments for this still need to be made.

BBJ: In what ways can quantum technology contribute to advancements in material science and engineering?

TS: Quantum computers will simulate materials that classical computers cannot handle, allowing us to predict material properties and build more accurate digital twins for engineering purposes.

BBJ: What advice would you give young researchers and engineers interested in pursuing a career in quantum technology?

TS: It is a fascinating field. If you enjoy physics, particularly quantum physics, you can engage in challenging research and eventually develop practical applications and products.

BBJ: Finally, what are your expectations and goals for the ReAQCT conference, and how do you envision it contributing to the global quantum technology community?

TS: My expectations were to get updated on developments in quantum computing and learn about the Hungarian quantum ecosystem. Both expectations were fulfilled, and I hope the conference fosters further collaboration and progress in quantum technology.

GERGELY HERPAI

Thomas Strohm is a leading expert in quantum technologies at Bosch Research.

3 Country Focus

United States

4th-largest Investor Country Continues to Deepen Bilateral Trade

As the Hungarian Investment Promotion Agency makes clear, business links between Hungary and the U.S. investor community are long-standing and substantial.

BBJ: Historically, how important has the United States been as an FDI source for Hungary? What is its share of the FDI stock, how many jobs have been created, and what is the total value of investments?

Hipa: The economic relations between Hungary and the United States go back decades. In the 1990s, America was the second-largest investor after Germany. U.S. companies also played a decisive role in the transformation of Hungary’s economy after the change in the political system. American companies make up the fourth largest investor community in Hungary; the foreign direct investments from the United States amounted to nearly USD 9.4 billion in 2022, based on the data of the National Bank of Hungary (MNB), representing 8.8% of the total FDI stock.

BBJ: And what is the trend with these figures today?

Hipa: More than 1,200 American companies are in the country, employing nearly 90,000 people. In the period between 2014 and 2023, with the support of Hipa, positive decisions were made in a total of 133 cases regarding projects involving companies from the United States (including the VNT subsidy to improve competitiveness and “Factory Rescue” programs), which represents a total volume of nearly HUF 700 bln. The government has provided more than HUF 76 bln in support. In terms of projects, American investors have been among the top three nearly every year, and they have done exceptionally well in job creation from time to time. An excellent example of the close economic relations between the two countries is that Coca-Cola was the first company with which the Hungarian government entered into a strategic partnership in 2012. As of today, 14 such U.S.-related agreements are in force. Moreover, Coca-Cola was the first company with which we renewed our strategic cooperation agreement.

The United States forms the fourth-largest investor community in Hungary.

The workforce employed by U.S. firms is nearly 90,000 people.

U.S.

FDI

in Hungary

The country accounts for 9% of the total FDI stock.

More than 1,200 American companies are present in the country.

The business services sector, automotive industry, and ICT generate almost 75% of all these jobs generated by the projects managed by Hipa.

BBJ: Where does the United States stand in the league table of FDI sources?

Is the level of investment growing today?

Hipa: The United States forms the fourthlargest investor community in Hungary, accounting for 9% of the total FDI stock. During all this time, the United States has been one of our most reliable Western partners on the FDI front.

BBJ: What have been the traditional sectors favored by U.S. investors over the years and how has that changed?

Hipa: The main sectors of interest to U.S. companies are the business services sector (BSC), the automotive industry, and the ICT sector. These three fields cover almost 75% of all jobs created by U.S. investment in Hungary, managed by Hipa since 2014. Over the last few years, ICT/IT has gained in importance while the BSC share has decreased.

BBJ: Hipa has a close professional relationship with the American Chamber of Commerce in Hungary. How would you characterize this? How helpful are the contributions of AmCham?

Hipa: AmCham Hungary is one of the country’s most influential and reliable business organizations and has represented local and international business interests since 1989, celebrating its 35th anniversary this year. One of the most important American chambers in the region, it has more than 300 companies. The work carried out jointly with the American Chamber of Commerce has dramatically increased the Hungarian economy’s efficiency and productivity in recent years.

In association with AmCham Hungary, Hipa organizes flagship events such as

the Business Meets Government Summit and the Business Services Hungary Conference every year.

Since 2016, the background materials created by the professional working groups operating within the chamber and the proposal packages formulated by it every year and delivered to the government are regarded as a kind of compass.

Hipa welcomes the chamber’s latest strategic comments, and we will do our best to ensure that as many of these recommendations as possible are effectively implemented, particularly those aimed at improving the business environment.

This valuable work has enabled constructive dialogue between commerce and decision-makers in recent years, essential for improving the economy’s long-term performance at various levels.

BBJ: Does the balance of trade favor Hungary or America?

Hipa: Trade between the two countries has undergone significant development since the change of government in 2010. After 2022, a new record was set in the growth of bilateral trade turnover, with a 17% increase. That was promptly broken again in 2023, which saw another 9.3% increase. America is our 11th biggest trade partner.

BBJ: Are there any specific target areas where you would welcome U.S. investment but don’t currently have?

Hipa: Our new investment promotion strategy is taking shape as our objective is to bring less energy- and laborintensive projects to Hungary and rather focus on investments that rely on highly skilled people. In the longer run, the idea is to primarily secure deals that help the economy move up the global value chain

so that the local talent pool stays in the country and productivity surges.

Hungary has been highly successful in developing industries related to e-mobility. By now, the EV battery ecosystem is mostly complete, with large cell manufacturers and their leading suppliers already present in the country. The focus of investment promotion is shifting; we aim only to attract the missing pieces and other futureproof industries not yet established in Hungary, such as biotech and medtech.

BBJ: What are some of the most recent U.S. investments?

Hipa: Perhaps to mention some specific recent success stories. Most recently, in May, Flex, which has already been in the Hungarian market for more than three decades, announced investments at two sites in Zalaegerszeg. It will begin manufacturing high-tech electric and hybrid vehicle components for global OEMs such as BMW, Ford, and Volkswagen, as well as Tier 1 suppliers. The EUR 90 million investment will create 210 new jobs and further strengthen the company’s and Zalaegerszeg’s prominent position in the automotive industry on a national and European scale.

In December 2023, Coca-Cola celebrated yet another milestone on the way to turning its plant in Dunaharaszti into the largest manufacturing hub of the region. It inaugurated a state-of-the-art PET bottle production line and a new production hall worth a combined HUF 8.7 bln. CocaCola has invested more than HUF 135 bln since establishing its Hungarian subsidiary 27 years ago. The company is now in the middle of its plan to effect investments totaling HUF 30 bln through to 2025.

Also in December, Howmet-Köfém Kft. said it would invest EUR 44.9 mln to implement a substantial extension of its wheel plant in Székesfehérvár. The project to be completed by early 2025 will create 80 new jobs. Headquartered in Pittsburgh, Howmet Aerospace is a global leader in delivering state-of-theart engineering solutions for aviation and transport. The company has been in Hungary since 1991 and has now broken ground on a wheel plant extension at its Székesfehérvár site. This latest development will significantly expand the company’s European capacity to produce forged aluminum wheels. And finally, again from December, BorgWarner announced a EUR 59.6 mln investment that will take its Hungarian operation to the next level in Oroszlány. The U.S. automotive supplier will add new products to its portfolio to serve demand from the hybrid and electric drivetrain segment, creating 60 new jobs.

Source: Hipa

Former Budapester Now Training With U.S. Navy

Diplomats and politicians are fond of underlining the importance of personal connections in any bilateral relationship. Connections such as a Hungarian woman who emigrated to the United States and joined the U.S. Navy.

school in North Miami, Florida, last year, she joined up in July 2023.

Seaman Recruit Julianna Toth, originally from Budapest, has been studying at the Naval Technical Training Center (NTTC) Meridian, learning the skills needed to be a yeoman in the U.S. Navy.

“At Meridian, instructors teach sailors to be combat-ready while providing the tools and opportunities for continuous learning and development,” Rick Burke of the Navy Office of Community Outreach tells the  Budapest Business Journal .

“I immigrated with my family from Budapest to Florida in 2018,” Toth explains. “Not only am I the first in my family to join the U.S. military, but I am also the first woman in my entire family to join any branch of the military.” Having graduated from senior high

“I joined the Navy for selfimprovement and better opportunities in the future, as well as to just try something new that would bring unique experiences,” Toth says.

“I learned that teamwork is a big thing in the Navy. It’s important that, no matter how you feel towards someone personally, you have to be able to come together as a team and put your issues aside in order to complete your mission, as well as holding each other accountable.”

NTTC Meridian, located at Naval Air Station Meridian, Mississippi, is committed to developing dedicated and motivated sailors and Marines. Following boot camp, it provides entry-level training to students in administration and supply ratings.

Tools and Opportunities

“NTTC Meridian is one of the more than 1,640 subordinate learning sites that serve as a part of the Naval Education and Training Command,” Burke tells the BBJ. “NTTC seeks to provide the tools and opportunities that enable life-long learning, professional

Lightyear Launches Fractional Limit Orders for U.S. Stocks in Hungary

The Lightyear investment platform will make limit orders available for fractional U.S. equities, allowing investors to trade smaller portions of U.S. equities and optimize their portfolio in an automated way. The company says it has recently seen that Hungarians have a strong interest in U.S. markets, and especially the technology sector.

Until now, investors have only been able to place limit orders for whole stocks, but as fragmented stocks are also available on the platform, not everyone has been able to take advantage of limit orders.

“Fractionalization of assets is paramount to ensuring fair access to the world’s markets for all, no matter how wealthy someone is, which is in line with Lightyear’s ambition to empower investors. This is particularly important for the world’s largest companies, whose share prices can be in the hundreds of dollars,” the company said.

Through fractional shares, Hungarian investors can now trade small fractions

of U.S. stocks and place limit orders to buy or sell, for example, 0.5 of a given share at a given price. This makes it easier for them to control their investments and, if necessary, to execute transactions at a desired price, thus making their investment more flexible and easier to manage.

Among the major stocks Lightyear says it has noted Hungarian interest in, Nvidia, Super Micro Computer (SMCI) and Tesla are the top targets.

Hungarian Growth

In 2023, Hungary was one of Lightyear’s fastest-growing markets, and the company says it has started to focus on incorporating features specifically requested by Hungarian customers.

This customer-centric approach is reflected in the recent launch of Lightyear’s interface in Hungarian, the third language to be available in Hungary. The launch of the first free Hungarian TBSZ account in January illustrated Lightyear’s commitment to providing Hungarian investors with easy-to-understand and efficient investment options, the firm says.

“Lightyear’s goal is to make Hungarians better investors. The first step to this

and personal growth and development, ensuring fleet readiness and mission accomplishment,” he adds.

With 90% of global commerce traveling by sea and access to the internet relying on the security of undersea fiber optic cables, senior officers continue to emphasize that the prosperity of the United States is directly linked to trained sailors and a strong Navy. That has only been underscored by the disruption to Red Sea shipping as a spillover from the Middle East conflict.

“The Navy is a prominent part of our country’s self-defense. With a strong Navy that’s always ready to defend its country, nations are less likely to challenge us,” Toth argues.

Hungary may famously be a landlocked country, but Toth says her family, who remain on the European side of the Atlantic, support her career choice.

“Seeing how proud my family back in Hungary is of me serving in the Navy makes it all worthwhile. To me, serving means being a part of a greater community for a greater purpose in giving back to our country,” says Toth.

“I would like to thank my parents, my uncle, Csaba Funtek, my aunt, Alina Tóth, other family members and my boyfriend for sending me letters and keeping me motivated when I felt like quitting and helping me push through to get to where I am today,” Toth adds.

is access, which we provided when we launched a year ago,” says Jani Kiilunen, head of product development at the firm.

“But it also involves making sure that people have the right data, analytical tools and products at their fingertips to make informed financial decisions and build wealth over time. Our team has been talking a lot to Hungarian clients to understand their needs, and we’ve seen a lot of investment going into U.S. equities,” he noted.

“This is why it is essential to extend limit orders to fractional U.S. equities, as this will help us support clients in developing their investment strategy,” Kiilunen added.

About Lightyear

Lightyear was founded in October 2020 by Martin Sokk and Mihkel Aamer, both early employees of Wise (formerly TransferWise), and has offices in London as well as Tallinn, Estonia. Lightyear Europe AS is regulated by the Estonian Financial Supervisory Authority as an investment firm authorized to provide services in all EU and EEA countries. The company has raised USD 35 million to date and is backed by Lightspeed Venture Partners, Mosaic Ventures, Metaplanet and Taavet+Sten. Other investors include Sir Richard Branson and Monzo’s early backer and HM Treasury’s Special Envoy for Fintech, Eileen Burbidge MBE.

Seaman Recruit Julianna Toth

Photo by Mass Communication Specialist 1st Class Patricia Elkins, Navy Office of Community Outreach

Corvinus Beats Leading U.S. University Team

A group of students from the Corvinus University of Budapest beat a team from the University of California, Berkeley, to take bronze at an international business competition in Los Angeles.

team’s solution would be taught by a prep teacher from the Kelley School of Business at Indiana University, both in terms of accuracy, depth and feasibility,” said the team’s coaching teacher Miklós Stocker, the head of the Institute of Management at Corvinus University.

“This also shows that students interested in business education can get world-class knowledge in Hungary,” added Stocker, who also runs the Case Track business case competition at Corvinus.

In the multi-round student competition, the Corvinus team was the only one to qualify for the final five with a 100% score, finishing in a respectable third place behind teams from Emory University in Atlanta and the Hong Kong University of Science and Technology.

The Corvinus University of Budapest team beat two of the world’s top 10 universities in the Marshall International Case Solving Competition: the National University of Singapore, ranked eighth in the QS World University Rankings, and the 10th-placed University of California, Berkeley.

Corvinus was represented by Anna Kálmán, Noémi Kopka, Alexandra Pongrácz and Tamás Gáspár. The competition, which took place in midFebruary, had variable task completion times to develop a solution to a complex business problem, one lasting five hours and another 24 hours.

The shorter case focused on the market strategy for a digital transformation consultancy to ensure radical growth. In the extended exercise, a football club’s fans had to be encouraged to interact more digitally, and the

club’s brand had to be internationally recognized. The solutions put forward by the Corvinus team came first in their respective divisions in both cases.

“We benefited greatly from the competition by being taught a thoughtful system at Corvinus with a wide variety of case studies. For the consulting firm case, for example, our team developed

Corvinus describes itself as Hungary’s leading university in economics and the social sciences. The medium-term objective of the Maecenas Universitatis Corvini Foundation running the university is to become Central Europe’s best higher education institution in these fields. The university currently has almost 10,000 students, including 2,000 international students.

in Brief News

Ambassador Criticizes Gov’t for Closer Ties to China

The U.S. ambassador to Hungary sharply criticized the government for its close political and business relations with China that often “come with strings attached, and the interest is often paid in sovereignty,” according to international news wire Reuters. In a speech to the American Chamber of Commerce in Hungary’s 35th-anniversary gala, Ambassador David Pressman slammed Hungary for doing business with China based on non-transparent contracts “rife with corruption.” He also criticized nationalist Prime Minister Viktor Orbán’s government for allowing Chinese workers into Hungary and for a security cooperation between the two countries that allows

for the presence of Chinese police officers in Hungary. Pressman said the United States also does business with China, but “transparently, based on clear rules, and with due concern for the security interests of our allies.”

The ambassador’s full speech is available on the U.S. embassy website.

35 Countries Call for end of ‘Politically Motivated’ LGBTQ Targeting

“This is the first time that such a significant number of countries have united to express their serious concern about the anti-LGBTQ laws introduced in Hungary and demand their abolition,”

U.S. Ambassador David Pressman told Telex in a statement. This year, 35 embassies and several cultural

a client acquisition strategy for the Asian market with a manufacturing and retail focus, based on an analysis of the external environment,” said team member Kálmán.

Pleasing Feedback

“I was extremely pleased to receive feedback after the final that our

It has close links with more than 200 partner universities worldwide. Corvinus regularly achieves high rankings in international higher education listings. Its business and management program was ranked first in the region in the Eduniversal 2019 ranking. Its master’s in management and organization has been ranked among the world’s top 100 business schools in the Financial

institutions joined the United States in supporting members of the lesbian, gay, bisexual, transgender, queer and intersex (LGBTQI+) community ahead of the 29th Budapest Pride Festival. “They are unanimous in calling for an end to the politically motivated targeting of LGBTQ individuals and their families,” Pressman added.

U.S. Travelers in Top 6 Spenders

Visitors from the United States were the sixth biggest spenders among tourists in Hungary in 2023, clocking up HUF 139 billion, according to data compiled by the Central Statistical Office (KSH). That was dwarfed by the table-topping Germans, however, who spent HUF 476 billion in the country last year. Austrian travelers came second at HUF 466 bln. Together, travelers from the two German-speaking countries accounted for 30% of the HUF 3.137 trillion of total spending by foreign visitors

The Hungarians also beat the Rotterdam School of Management and the University of Hong Kong Business School in the final. The format of the finals was unique; instead of the usual presentation and question-and-answer session, the team had to give a half-hour presentation in which the jury could stop the team at any time after five minutes and ask questions about the solution.

Times’ Master’s in Management ranking since 2005. The Corvinus University of Budapest is the only university in Hungary with two international institutional accreditations, from the Londonbased Association of MBAs and the U.S.-based professional and accreditation organization the Association to Advance Collegiate Schools of Business.

to Hungary in 2023. Romanian tourists spent HUF 218 bln, visitors from Slovakia HUF 157 bln, and those from the United Kingdom HUF 151 bln.

Flex Building HUF 36 bln Plant in Zalaegerszeg

U.S.-based automotive industry supplier Flex will build a HUF 36 billion plant in Zalaegerszeg (215 km southeast of Budapest). According to origo.hu, Minister of Foreign Affairs and Trade Péter Szijjártó announced that the government will support the investment, which will create 210 highly skilled jobs, with HUF 7.8 bln. He added that the plant will turn out high-tech parts for the most prominent car brands, including those with a manufacturing presence in Hungary. He noted that all three of the big German car makers had brought manufacturing bases to Hungary, and they would be joined by Chinese EV giant BYD, making

The Corvinus team, from left: Tamás Gáspár, Alexandra Pongrácz, their teacher Miklós Stocker, Noémi Kopka, and Anna Kálmán.

U.S. Security Expert Quizzed on 3SI

Independent think tank the Equilibrium Institute hosted an online discussion with the former U.S. Deputy Assistant Secretary of Defense for Europe and NATO Policy Ian Brzezinski on “How the Three Seas Initiative connects the Central and Eastern European region.”

for cross-border infrastructure development, continued support can be guaranteed, the expert argues.

Responding to questions from the audience, Brzezinski also discussed the geopolitical challenges facing CEE, the Russo-Ukrainian war, Asian conflicts and the impact of the IndoPacific region on Europe. He stressed that although Presidents Obama, Trump and Biden had all attributed greater strategic importance to Asia, Euro-Atlantic cooperation is a lasting, mutually beneficial alliance. Consequently, Central and Eastern Europe need not fear being left alone.

12 Nations and 3 Seas

At the event earlier this spring, Hungary’s former Ambassador to Washington Réka Szemerkényi, a senior advisor for foreign and security policy to the Equilibrium Institute, quizzed Brzezinski, a member of the strategic advisory group of the U.S. think tank the Atlantic Council, about the Three Seas Initiative.

The foreign policy and military expert said that although the Central and Eastern European region has seen many examples of successful framework cooperation agreements of varying degrees of success over the past decades, 3SI stands out. Its potential lies in enabling long-term economic, energy security, infrastructure and even military mobility developments by exploiting local geo-economic potential.

Mirroring a complaint that used to be made about military spending levels among NATO allies, Brzezinski said many of the countries participating in the 3SI have not yet made a financial contribution to its investment fund, which seeks to mobilize private capital on a free market basis.

Hungary a “bastion of electromobility” in Europe. Szijjártó said Hungary’s annual output of cars could double from over half a million at present. “Within a few years, Hungary will be among five countries that can produce over one million cars a year,” he added.

U.S.-based Fitch Affirms Hungary ‘BBB’ Rating

The U.S.-based Fitch Ratings affirmed Hungary’s “BBB” sovereign rating with a negative outlook at a scheduled review on June 21. “Hungary’s ratings

Highly Attractive

Brzezinski said that the region’s geo-economic position, with a total GDP of more than USD 2 trillion, high FDI rates of return and its future growth potential, make it attractive to private capital. While some worry this year’s U.S. presidential election will have a decisive factor for the future of 3SI, Brzezinski pointed out that American support for the initiative has been there since the Obama years, regardless of party affiliation. Instead, the most critical factor influencing the continuation of support will be the performance of 3SI itself in the near future. If the initiative can continue to grow, using the capital it receives

are supported by strong structural indicators relative to ‘BBB’ peers, investment-fueled economic growth and solid net FDI inflows. These are balanced against high public debt relative to peers, a record of unorthodox policy moves, and a worsening of governance indicators in recent years to closer to the ‘BBB’ median,” Fitch said, as reported by state news service MTI. “The negative outlook reflects risks around the policy environment and the performance of public finances, which could undermine economic stability and pressure financing costs,” it added. Fitch had earlier affirmed Hungarian oil and gas company MOL’s long-term issuer default rating at “BBB-,” with a stable outlook. “MOL’s rating is supported by a diversified and integrated business with assets in downstream, upstream, retail, and gas midstream, low leverage and a strong competitive position in the company’s core markets,” Fitch said. “The rating is constrained by MOL’s short reserve life compared with direct peers’,

According to the Three Seas Initiative website (3seas. eu), it is a politically inspired, commercially driven platform for improving connectivity for 12 EU Member States found between the Baltic, Adriatic and Black Seas. Founded in 2015, the 3SI was born from a shared interest in developing transport, energy and digital infrastructure connections on the EU’s north-south axis. Those connections must be trusted, sustainable and inclusive so that they strengthen EU cohesion and enrich transatlantic links. “3SI aims to scale up the region’s excellence EU-wide and globally. 3SI partners, the United States, Germany, and the European Commission, are closely involved in this process,” the website says. To improve connectivity and accelerate investments in infrastructure projects, the 3SI Investment Fund was set up in 2019.

a moderate scale, and by uncertainties regarding the continued supply of Russian oil to Hungary and MOL’s stake in Croatia’s INA,” it added.

America 2nd Most Important Services Partner

The United States was Hungary’s second most significant partner in the trade of services with a 7.9% share, somewhat behind Germany (20%) and just ahead of Austria 7.8%), according to recent data released by the Central Statistical Office (KSH). Overall, Hungary had a EUR 2.415 billion surplus in the trade of services in the first quarter. Exports of services increased 3.7% year-on-year to EUR 7.789 bln. Imports of services also went up 3.7% to EUR 5.374 bln. The tourism surplus reached EUR 564 million, the logistics surplus came to EUR 748 mln, and the surplus for business services stood at EUR 475 mln. Trade with other European Union member states accounted for 65% of Hungary’s service exports and 71% of its service imports in Q1.

Graphic by Tomasz Makowski / Shutterstock.com

4Special Report

Tourism

In Celebration of Gresham Palace, a ‘Love Letter to Budapest’

Thibaut Drege, the general manager of the Four Seasons Gresham Palace Budapest, looks back on 20 years of success at the luxury hotel and what keeps it at the top with international travelers.

BBJ: Congratulations on the 20 th anniversary of Four Seasons Hotel Gresham Palace Budapest. Can you share with us the journey of this iconic hotel over the past two decades? Thibaut Drege: The journey of Gresham Palace is genuinely remarkable. This magnificent Art Nouveau Palace first opened its doors in 1906 but was reawakened from its “Cinderella dream” when Four Seasons moved in 20 years ago in 2004. Since then, it has become a symbol of elegance in Budapest, offering exceptional service and experiences to our guests. Gresham Palace is a true gem, not just a hotel; it’s a landmark in Budapest and a significant part of the city’s heritage.

BBJ: Last year, when you arrived, you said, “Gresham Palace is one of the most beautiful hotels in Budapest, already a gem, a beautiful diamond; the only question is, how do we find the right lighting from the right angle, how do polish the diamond so it can shine at its best?” Since then, the hotel has received numerous accolades. Can you tell us more about these recognitions?

TD: We are incredibly proud of the international awards we’ve received. Conde Nast Traveler, often called the Oscars of the industry, recognized us as one of the best hotels in the world. Our Múzsa Bar was included in the 50 Best Discovery list and won Bar of the Year 2024, and we received the Wine Spectator Award for our

outstanding wine selection for our French Brasserie, Kollázs. Our team members have also been honored with titles such as Sommelier of the Year 2023, and Árpád Szűcs became Pastry Chef of the Year 2024. These accolades are recognition of the entire team’s hard work and dedication.

BBJ: What makes Four Seasons Hotel Gresham Palace Budapest stand out in such a competitive industry?

TD: Our unique blend of historical elegance and modern, effortless luxury sets us apart. Gresham Palace is not just a hotel; it’s a landmark that tells a story. The building is an architectural masterpiece and a “love letter” to Budapest’s rich cultural heritage. Our commitment to providing personalized and exceptional service ensures that every guest feels special. The warmth of our hospitality is globally known, and the dedication of our amazing teams to uphold the highest standards of hospitality makes us stand out. Gresham Palace is a true gem, and we are privileged to welcome our guests here.

BBJ: What are some of the unique experiences offered at this hotel?

TD: We offer a range of unique experiences that truly enhance our guests’ stay. One such is our “Tokaj: King of Wines, Wine of Kings” offering. This exclusive experience promises to immerse guests in the rich history and flavors of the Tokaj wine region, renowned as the epitome of Hungarian

winemaking excellence. The adventure begins with a scenic helicopter ride from Budapest, providing a bird’s-eye view of the picturesque landscapes of Tokaj. Guests will be greeted by our Head Sommelier, Gábor Becker, who will guide them through wine tastings at two prestigious wineries, Oremus and Szepsy, including the renowned Tokaji Aszú. Additionally, we have the “CheckIn and Checkmate” experience with Chess Grandmaster Judit Polgar. Celebrated as the most successful female chess player in history and recognized as the inspiration behind the Netflix series “The Queen’s Gambit,” Judit Polgar offers an extraordinary masterclass for our guests. This experience is perfect for chess enthusiasts of all levels, providing insights and strategies from a world-renowned grandmaster in the Art Nouveau surroundings of our hotel.

BBJ: Múzsa Bar has garnered a lot of attention since its opening. Can you tell us more about it?

TD: It has set a new standard in craft cocktail excellence for the region since its opening in October 2020. Offering an inspired atmosphere to enjoy artful cocktail creations, Asian cuisine, and a diverse mix of local authentic live entertainment, Múzsa represents a modern interpretation of Budapest’s “Golden Age” that is both innovative and iconic. Since its opening, the bar has captivated locals and international visitors with its sophisticated and modern yet playful

ambiance. Múzsa has rapidly emerged as one of Budapest’s most highly acclaimed cocktail destinations through meticulous craftsmanship and an unwavering dedication to excellence.

BBJ: How about Kollázs Brasserie & Bar?

TD: It has also been an integral part of our success. It has refined its identity and communication, continuously innovating to offer a memorable dining experience. Kollázs blends contemporary and traditional culinary delights, making it a favorite among our guests.

BBJ: What are some of the critical factors contributing to the hotel’s success?

TD: Our success is driven by several key factors: a stunning location in the heart of Budapest, a beautifully restored historical building, and a team that is passionate about hospitality. We also continuously innovate and elevate our offerings, whether it’s through our awardwinning dining experiences, luxurious accommodations, or unique events. Four Seasons Budapest Gresham’s team is fantastic, and their genuine care and attention to detail create a warm and welcoming atmosphere for our guests. Our strong connection with the local community and culture also significantly influences our success.

BBJ: How has Budapest as a destination evolved?

TD: Budapest is a wonderful city that has evolved tremendously over the past two decades. It is a destination renowned for its rich history, stunning architecture, and vibrant cultural scene. The city offers a perfect blend of tradition and modernity, making it an attractive destination for travelers worldwide. I am also pleased to see new luxury hotels, such as the Mandarin Oriental and St. Regis, opening in the city. This growth is an excellent opportunity for Budapest as a destination, enhancing its appeal and offering more choices for discerning travelers.

BBJ: What does the future hold for Four Seasons Budapest?

TD: We will continue to build on our legacy of excellence and innovation. Our goal is to remain at the forefront of luxury hospitality, offering our guests unforgettable experiences. We are also committed to sustainability and enhancing our engagement with the local community. As Budapest continues to evolve, so will we, always striving to exceed our guests’ expectations. It’s an honor to lead this incredible hotel, and I look forward to many more years of success and memorable moments at Four Seasons Hotel Gresham Palace Budapest.

BBJ STAFF

Thibaut Drege

Delivering on Guest Experience and Associate Engagement

Angela Saliba, the first female GM to lead the Marriott Budapest, took up her post on May 1. In her first major interview, she discusses her first impressions of the market, priorities for the hotel, and aspirations for the future.

BBJ? What is your impression of the market in the short time you’ve been here, and is there anything that has surprised you?

Angela Saliba: When I was approached about the opportunity to lead this property, the biggest motivator was this iconic Marriott flagship hotel. It has an amazing reputation in the company and the city. I came not knowing much about Budapest and was blown away by its stunning architecture.

I was not expecting to see such a high level of international tourism in the city, which makes it easier for someone in my position because there is a natural demand, from both North American and European travelers, to visit Budapest as a leisure destination. Equally, there are many opportunities for tapping into the business and corporate segments. As a hotel with extensive meeting space including two ballrooms, business travel is equally important for us. My impressions have been overwhelmingly positive. Despite having zero knowledge of the language, I found that’s not been a barrier at all. Everybody has been very welcoming both in the hotel and the city. I am fascinated by the destination and am discovering it slowly but surely.

BBJ: You touched on several different business groups there. Is any one more important than another?

AS: Budapest is one of those destinations that is lucky to have demand almost all year round. From April through the summer months, you’ve got a mix of leisure guests plus people coming for meetings and incentives. I’ve been told that the Christmas markets are amazing, and we continue to enjoy

high occupancy even during the festive period, which is quite unusual. In many European destinations, we see Christmas as a quiet period. Since we have a lot of meeting space, plus 364 rooms to fill, the meetings and incentive business is vital for us and a good base for building our occupancy. So, I wouldn’t prioritize one segment over the other. Finding that balance is crucial to ensure that we leave space for meetings and events while also having rooms available for leisure guests coming to explore Budapest.

BBJ: You are the first female GM at the Budapest Marriott. Do you see part of your path as being a role model to other women?

AS: What got me where I am today, more than anything, is a passion for the industry and people. I joined the industry looking for a summer job when I was 17 and discovered that you meet lots of people from all over the world. To me, that seemed very glamorous and exciting.

In 1997, Marriott opened its first Westin Resort outside of North America, and I thought, here is an American company that’s globally recognized. So, I joined the pre-opening team and looked for opportunities to raise my hand whenever roles with bigger responsibilities arose. Did I ever

inspire both genders, but I especially pay attention to young female talents concerned about juggling their personal and professional lives. I aim to be a good brand ambassador for Marriott International, for what the company represents, for our core values, as well as for the Budapest Marriott Hotel, to inspire talent of all ages, male and female, to reach their full potential here.

I have mentored several female managers across Europe to encourage them in the career path with Marriott. I am always happy to share my experience and discuss leadership challenges and opportunities.

BBJ: What is the secret to running a good hotel?

AS: Talent is key for us to keep our business running and to keep our guests happy with the level of service that we provide. Guest expectations continue to rise. We are a fivestar property, and hence, guests are expecting an amazing and memorable stay. It is my role with my dedicated team to curate that guest experience. We must constantly ask ourselves, “What do our guests want?” and continue to deliver on that. I meticulously read all the guest feedback, whether on social media or our surveys, to ensure we have our finger on the pulse.

I always go back to “What is the customer telling us?” It’s not about my personal opinion. Of course, there are brand standards we need to follow. But if somebody is here on leisure for two or three days, they have very different needs from somebody here for business. We need to make sure we’re able to anticipate all those needs.

think about my gender holding me back? Not really, probably because I was surrounded by great leaders who supported my career development. The industry can be challenging; you don’t close the door at five o’clock. It’s 24/7 all year round. During the festive season, Easter, all these special moments when people are celebrating, you’re working or on call. Perseverance and some elements of resilience are essential, regardless of gender. Being in a property leadership role for the last 16 years, I recognize that it’s changing, and I’m sure it will continue to evolve. More female GMs have been appointed in Europe in the last decade. At Marriott International, we are committed to developing talents, including female leadership across all levels of the organization. I try to inspire women and men to realize they can achieve their full potential in an organization like Marriott International. They need to take responsibility for their development, but the opportunities are there; they just need to embrace them. When it comes to women, the biggest concern is always, “Can I make it into a leadership role but still have a life outside of work, with personal goals and aspirations? Can I still have a family and achieve these career goals?” Absolutely, you can. So, I’m here to

BBJ: Did you have specific goals for what you want to achieve at Budapest Marriott, or were you given targets?

AS: In any property that you manage for Marriott International, regardless of the brand, there are some fundamental essentials that a GM needs to meet. Guest satisfaction is crucial. Financial targets are critical, as is associate satisfaction. Market share is also important, ensuring we’re getting a fair share of the business coming into Budapest. So, it’s a mix of quality-related goals and financial goals. Those are the pillars that any GM needs to be completely aligned with. Beyond that, I want to ensure we deliver a memorable guest experience and support our associates in their growth and achieving their best.

BBJ: Any final thoughts for now?

AS: I’m delighted to be in Budapest, leading this iconic Budapest Marriott Hotel, and happy to collaborate with and lead such a fantastic team. I don’t take it lightly. I’m building on the achievements of all the previous GMs who came before me and took the hotel from strength to strength, and now the baton has been passed to me.

ROBIN MARSHALL

Angela Saliba

Andrássy Castle in Tiszadob Wins Audience Award

The restored Andrássy Castle in Tiszadob (205 km northeast of Budapest by road) has won the “Best New Market Operator” category in the 2024 Business Excellence Awards. Described as one of Hungary’s most impressive historical buildings, it reopened its doors in December 2023 after six years of renovations and has already drawn nearly 32,000 visitors.

to the future growth of the national business tourism market. They were presented for the 14th time on June 13.

During the reconstruction of Andrássy Castle, the contemporary living space and the surrounding park were completely renewed. For 12

years

Established by the editorial board of Business Traveller Hungary, the annual Business Excellence Awards recognize the performance of market players whose service excellence stands out from the competition and who will significantly contribute

PRESENTED CONTENT

before the reopening, paintings, sculptures, furniture and utensils from the family’s legacy were collected from all over the world.

On the ground floor of the renovated castle, the former living space of the Andrássy family has been restored, with much of the original furniture and objects returned to their

original setting. The art collection of Tiszadob Castle is said to be priceless.

A Vanished Life

The upstairs space is home to an events hall and an exhibition, “Aristocrats of Spirit: The Vanished Life of the Andrássy

Andrássy Lineage

The family (the full formal name is Andrássy de Csíkszentkirály et Krasznahorka) is an ancient and well-connected part of the Hungarian nobility that survives to this day, with the current generation living in Canada. Perhaps its best-known scion was the statesman Count Gyula Andrássy (born on March 8, 1823, died

Continuously Investing in the ‘Exceptional Performance’ of Kempinski Budapest

Stephan Interthal, the long-standing general manager of the Kempinski Hotel Corvinus Budapest, talks with the Budapest Business Journal about the latest round of renovations and likely guest figures for 2024.

BBJ: The latest in-house renovations have been completed. How long was this stage, and how much was the investment?

Stephan Interthal: For this stage, from November 2023 to April of this year, we focused on renovating 81 rooms and three suites, comprising two executive suites and one Corvinus Collection Suite. The total investment amounted to EUR 5.5 million. Over the past four years, we have completed renovations on 215 suites and rooms, accounting for twothirds of our inventory. The remaining three floors are scheduled for renovation during winter 2024-25 for six months.

BBJ: You’ve garnered quite a reputation as the ‘king of hotel restoration’ at Kempinski. Is this the end of the road for a while at Corvinus Budapest, or is it akin to painting the Golden Gate Bridge: a neverending story where, once you get to the end, it is time to start again?

SI: Fortunately, we find ourselves in a privileged position with hotel owners

who believe in both the great destination and the exceptional performance of Kempinski Hotel Corvinus Budapest. They remain committed to continuously investing in the property. Thus, renovations indeed are and will be somewhat of an ongoing narrative. This summer, we’re gearing up to renovate the hotel’s business center and the public restrooms in the banquet and conference areas. Plans are already in motion for winter 2025-26 to renovate the larger kitchen areas, necessitating timely investment and rehabilitation.

BBJ: Kempinski The Spa has also undergone a facelift. What new services are available to guests?

SI: Last summer, Kempinski The Spa underwent a comprehensive renovation, investing approximately half a million euros to completely revamp the welcome lounge, reception area and treatment rooms, adopting a chic “Japandi” style, a mix of Japanese and Scandinavian design. Concurrently, we enhanced the hotel’s fitness area and sauna facilities. Further improvements are on the horizon, with plans underway to upgrade the pool and

the wet area, likely slated for next summer. Additionally, we’ve introduced certified organic seaweed-based skincare products from Voya to the market alongside innovative treatment concepts developed by Kempinski Resense Spa. Since the renovation, we’ve observed a significant uptick in interest and engagement with these revitalized services.

BBJ: What are your guest figures for 2024? Are you back to preCOVID levels? What’s your forecast for the rest of the year and beyond?

IS: Regarding our guest figures for 2024 and the return to pre-pandemic levels, we

family,” where visitors can learn about the life stories of family members and their public and political careers through various interactive attractions.

The award delighted Zsanett Oláh, managing director of National Heritage Protection and Development Nonprofit Ltd. (NÖF Kft.)

“This recognition is particularly valuable to us. In addition to the award, we are proud to have welcomed nearly 32,000 visitors since the inauguration,” she said.

According to NÖF, the renovated castle building and park will provide a venue for high-quality events that will be a national attraction for heritage and cultural event visitors. “Tiszadob can thus deservedly become a center and symbol of cultural tourism in the Northern Great Plain region,” NÖF said.

Feb. 18, 1890), who served as Prime Minister of Hungary (1867-71) and Foreign Minister of Austro-Hungary (1871-79). It is for him that Andrássy út is named. There is also a bronze equestrian statue of the count on Kossuth tér in front of the Parliament building. Initially erected in 1906, it was destroyed by the Communists after World War II and restored in 2016.

find ourselves in a fortunate position. By the end of 2022, we had already nearly regained our pre-COVID levels, and 2023 turned out to be a record year in the 32-year history of our hotel, both in terms of revenues and returns of operators and owners alike. Since the beginning of this year, we have experienced some unexpected “bumpy business weeks,” primarily due to our extensive room renovations. At peak times, this resulted in an inability to accommodate certain larger businesses, especially in the meetings and events segment, due to limited inventory availability. Additionally, we’ve observed increased competition in the Budapest market with the introduction of several new five-star properties. Nevertheless, May and June have proven exceptionally strong months, setting new records. As we progress into the summer, we anticipate further developments, considering that some significant one-off events from 2023, such as the Athletic Championship and a large Indian wedding, will not be recurring. Nonetheless, we remain confident in the performance of Q3 and Q4 of 2024. In summary, we expect 2024 to be comparable overall to the 2023 performance.

Zsanett Oláh, center right, in a green dress, and the Andrássy Castle Tiszadob team from NÖF Nonprofit Kft.

Stephan Interthal

Hoteliers Optimistic for 2024 as ‘Old Order’ Returns

The president of the Hungarian Hotel & Restaurant Association (HH&RA), Tamás Flesch, discusses hope for this year among the challenges that remain and the opportunities for the future.

BBJ: How is the 2024 market shaping up for your members?

Tamás Flesch: We can be optimistic about the start of the year. From January onwards, tourist accommodation turnover has increased and could even break the 2019 record, barring any unexpected developments. We can say that the old order has essentially returned. Fortunately, Budapest’s popularity is undiminished, and it is still an attractive destination for foreigners. Domestic tourism is also thriving. Foreign guests account for 50% of the overnight stays and domestic guests for the other half. Many people choose to relax in Hungary’s most popular destinations. More quality accommodation is being built outside the capital, and once open, it is often close to full capacity, colleagues say. Profitability has also risen to acceptable levels thanks to price increases.

BBJ: What are the greatest challenges and opportunities for hospitality this year?

TF: The impact of high inflation is still felt, and labor shortages and staff turnover are a longstanding feature of the hospitality industry. As in all sectors, there is a general sense of economic uncertainty. This year, the rise in water and sewerage charges is a new phenomenon that is imposing a higher cost on hotels, with many having to pay three times more than before. Inbound tourism is not yet at the same level as before the war, but tourists are returning. The Russians were important guests; they are a severe loss to rural tourism. Before the war, Israel was the third most important visitor country, but fortunately we are seeing them again in hotels.

It is unlikely that prices will be raised significantly, but it is worth aiming for prices around inflation. Hotels are still cheaper than in Western Europe, but we are slowly catching up, especially in the capital.

BBJ: What is the breakdown of your members between luxury hotels and those from the budget end of the scale?

TF: The current membership of the association is close to 650 members. Among them are 470 hotels with 40,000 hotel rooms. The membership represents roughly 70% of the domestic hotel capacity. Most members are from four-star hotels, representing 45%. They are followed by three-star hotels (30%) and five-star hotels (10%). Many fivestar hotels have opened recently in the capital and the countryside, with around 2,000 guest rooms. Global brands are opening new hotels, which suggests a fascination with the city. We can also say that almost all of the well-known hotel chains are HH&RA members. To take advantage of five-star hotels, it is essential to attract flights from many countries, including overseas flights in addition to low-cost flights. We also need to develop shopping tourism.

BBJ: How are these various sectors affected differently by the challenges?

TF: The constant question is: “Who is in a more difficult position? Hotels in the countryside or business hotels in Budapest?” It is a little harder for the rural ones. Most wellness hotels in the countryside cannot cope with inflation, although, fortunately, Hungarian guests spend money through Szép-cards at their hotels. Those in the capital are in a slightly better position, but it would be good to increase the number of nights spent here, too. Instead of two or three days, we would like to see foreigners spend four or five days here. For Budapest hotels, time will tell whether a slightly higher price increase, even in euros, is feasible. If we look at the issue in international terms, it is clear that

the domestic market has to compete with foreign markets. There is no other way. The first and most crucial step is to raise the quality of services.

BBJ: How do you expect the market to develop over the next few years?

TF: The number of accommodation establishments in Hungary is constantly increasing. The ratio is shifting towards premium accommodation, thanks to foreign capital inflows. Foreign investors seem to see hotel construction as a good business despite Budapest’s room and occupancy rates being lower than in other European cities. One of the beauties of this industry is that hotel construction and operation is a fascinating reflection of broader societal changes. Hotels are no longer just hotels; they must become “experiences” shaped by a commitment to design, technology and sustainability.

BBJ: How do you expect trends like ESG and AI to change the hospitality market in Hungary?

TF: Regarding sustainability, we are not discussing an investment that pays off in the short term, but it is still worth it. We inevitably pay attention to optimizing energy use and rethinking waste management. It is worth paying attention to the regional sourcing of raw materials and the supply of filtered water. It is good to see that more hotels are developing their own water filtration equipment. It’s also exciting that young people are increasingly interested in this topic. They are willing to pay more for accommodation in exchange for environmental awareness. If they know that part of the revenue will be spent on improvements in this direction, they will choose that accommodation despite

the higher price. Interesting initiatives are being introduced, especially abroad. Vienna is at the forefront of sustainability, with many hotels offering discounts for environmentally friendly transport and innovative ways to renovate equipment. It is worth following these examples. And artificial intelligence tools seem to have potential in many areas. To some extent, they can alleviate labor shortages and improve traveler satisfaction. AI can be used for simple and routine tasks, allowing colleagues to do what they do best. However, what AI certainly cannot do is deliver an authentic guest experience. Connecting with guests is what can make the hotel experience truly special.

BBJ: How could the government better support the hospitality sector?

TF: The purchase of Budapest Airport is a significant step. It will give us a chance to enter the international bloodstream. The government is spending a considerable amount of marketing money to sign up new airlines or increase the frequency of flights among airlines already bringing in visitors.

Properly regulating short-term housing rentals has been a central theme of the HH&RA for years. Hoteliers still have to comply with much stricter requirements, which means extra costs for the industry. It would be good if short-term rentals were also regulated by law.

Introducing a general service charge for basic services is also one of our organization’s lobbying points. Labor shortages hamper the operation of accommodation facilities, but a wage increase could change this. This extra resource would enable hoteliers to cover the increase in staff wages.

ROBIN MARSHALL

Tamás Flesch, president of the Hungarian Hotel & Restaurant Association (HH&RA).

Pioneering Tokaj Wine Hotel Battles

Inflation, War and Competition

Hungary’s flagship Tokaj Wine Region, located between 210-260 km northeast of Budapest, is becoming the scene of hot competition in the high-end tourism market.

The family promptly set about putting things in order, opening the winery in the middle of the decade, with the hotel following in 2003.

Organic Pioneer

Since the early days, the winery was a pioneer, at least in Hungary, in focusing on certified organic wines. It now produces some 150,000 bottles per year, a mixture of fine still and sparkling whites, along with the classical Tokaji aszú and Szamorodni dessert wines.

“Now we are really going on sparkling wine because last year, our 2019 Extra Brut organic furmint won the World Championship gold award,” Toth enthuses. It also earned the accolade “Best in Class Organic Hungarian Sparkling Wine.”

Portraits of Emperor Franz Joseph and his wife, Elisabeth of Bavaria, dominate one wall of the spacious lounge of the Grof Degenfeld Wine Hotel; in an adjacent room, shining silverware and sparkling glasses atop dazzling white tablecloths await evening diners.

The royal couple, who also moonlighted as the King and Queen of Hungary after the 1867 “Compromise” that created the Austro-Hungarian Empire, have been carefully chosen. The message is clear: Dear guest, you are amidst high-born opulence.

“The Degenfeld name was first recorded in the 13th century, so it’s a very ancient European aristocratic family. There are branches in almost every European country,” Máté Tóth, managing director of the Gróf Degenfeld estate, tells the Budapest Business Journal

Sitting under the silent gaze of Feri and Sisi, Tóth outlines the history of this hospitality operation, located in a verdant park on the outskirts of the village of Tarcal, a mere 5 km from Tokaj, the town that gives its name to the larger wine region.

“We understand that the Hungarian part of the family had a huge influence on the Tokaj wine sector; they had a lot of land, some near here, to the south of Tokaj [town],” he says.

However, today’s business belongs to the descendants of the Transylvanian branch of the clan. Count Degenfeld and his family, including his daughter, Countess Maria Degenfeld (a child at the time), left communist Romania almost penniless in 1964

to live in Germany.

After the change of system in 1990, they visited Hungary to discover what they could of the family’s heritage. Ultimately, the family purchased the building in use as the hotel today, a former school for winemakers dating from 1873 which had fallen into ruins, together with 100 hectares (247 acres) of vineyard, though much of this, too, was in a sorry state, and not productive.

The resulting increase in demand meant that the stock of some 7,000-8,000 bottles is running out.

“We are now trying to ramp up production,” Tóth says, “But unfortunately, this takes a lot of time.”

On the hotel side, things are tough, with the expected recovery

from COVID in 2022 hit by the fullscale Russian invasion of Ukraine.

“The last years in Hungary have been hard, with high inflation and, of course, the war. We are quite close to the Ukraine border. It doesn’t matter if there is no war here, many Americans think we are close to Ukraine, and [...]” Tamás Gábri, manager of the Gróf Degenfeld Hotel, tells the BBJ

The outbreak of hostilities between Israel and Hamas has further weakened demand, specifically from Hasidic Jewish pilgrims, a valuable segment of visitors who come to pay their respects at the grave of a famed rabbi in the nearby village of Bodrogkeresztúr.

Increasing Competition

These factors and a clutch of new, high-end hotels in Tokaj opening in the past few years, all benefiting from state support, have increased competition for the already limited up-market tourism sector. Gábri puts a positive face on the challenges.

“You cannot compare these [new] venues to Gróf Degenfeld because with our park, the natural environment, the

Tokaj: Hospitality in All Shapes and Sizes

If the EUR 140-190 room prices for the elegance and facilities of Degenfeld and other high-end hotels in the Tokaj are beyond your means, there are more modest, acceptable alternatives in Tokaj’s 27 towns and settlements.

One such is Hungry Grape Guests, a country home in the quiet village of Erdőbénye, where Hungarian-Canadian Sylvia Magyar offers a tastefully decorated room with shower and cooking facilities suitable for a couple and child for HUF 28,000 a night.

“I lived in Budapest since I came back to Hungary in 1993, [but]

winery, it’s facilities, these are something very different. But of course, these new hotels increase pressure on us,” he says. He points to the new marquee tent now being erected at the back of the hotel as another attraction, especially for large wedding parties. He says he hopes to achieve 85% of the 2019 guest nights this year while admitting that the reality probably “won’t meet our expectations.”

Grof Degenfeld staff can take heart from their record as a reliable provider of high-quality hospitality, however. Gábor Bánfalvi, wine and culinary author and co-founder of Taste Hungary, a professional food operation of more than

years’ standing in Budapest, certainly holds the operation in high esteem.

“Degenfeld works very well for us; we generally take one or two small groups of high-end wine tourists there per year. It’s a very nice location and a totally complex experience with its own winery, rather than just a [high-class] hotel,” he says.

He also praised the lunches and dinners, with the careful matching of wines, although he admits the breakfasts “are a bit weak.”

Overall, however, “It’s been getting better lately,” he says, adding that whenever he needs to arrange a highquality wine-food-tourism visit in the region, “Degenfeld is always our choice.”

I always had this idea that I would come and open a guest house somewhere,” she tells the BBJ

Growing up in the Okanagan Valley, a Canadian wine region, she naturally loved viniculture.

“I’d been coming to Tokaj for years, so it was one of the obvious choices,” she says, adding that a visit to the village wine festival in 2019 sealed her decision.

Since opening in 2021, Hungarians have made up about half of her guests, with Poles a strong second. Most stay between two to four nights.

Just up the road from Magyar, Zsolt Berger, a former journalist

from the Hungarian capital, and his locally-born wife, Szilvia Karádi, run a winery with two apartments accommodating up to 12 people. Prices average around HUF 40,000 per night, depending on the season.

Gábor Bánfalvi, co-founder of Taste Hungary, confirms that accommodation in Tokaj runs the gamut from luxury to simple bargain basement.

“There are tons of options around. Many are in the HUF 15,00020,000 range, but there are wineries with rooms for HUF 10,000 because the winemaker wants guests to taste his wines and take some bottles home,” he says.

Tamás Gábri

Máté Tóth

Sylvia Magyar

Goal is to ‘Go Beyond’ as New York Palace Reaches Milestone Birthday

The Anantara New York Palace Hotel, or more specifically, the building itself, will celebrate a significant anniversary this year. General manager Tamás Fazekas talks about that, the development of the tourism market in 2024 and the challenges and opportunities ahead.

BBJ: The hotel building has a significant anniversary this year. What is it, and how do you plan to celebrate it?

Tamás Fazekas: Indeed, the New York Palace was built in 1894 by the New York Life Insurance company, meaning this year we celebrate the 130th anniversary. After the New York Life Insurance company moved out, the building hosted many local companies like the Nova Transport and Industry Company and a publishing firm. Although a five-star luxury hotel opened here only in 2006, the New York Café has existed and operated since the beginning. Therefore, we plan to organize a grandiose event at the end of the year to celebrate this wonderful anniversary. We have several ideas in mind, although we don’t want to reveal them at the moment

BBJ: How was the first half year of 2024 for you? Were you able to meet your targets, and how does the second half look?

TF: The first half of 2024 looks very good for us. Although occupancy will not yet reach the level of preCOVID, the increased average rate can compensate for that. We still see a slow recovery from some markets, such as the Far East. However, some other markets show unexpected growth. In the second half, it is still difficult to predict, especially as the UEFA European Championships have already started, and the Paris Summer Olympics will also take place between July and August. On the other hand, we believe that the Hungarian Presidency of the Council

of the European Union in the second half of the year will generate additional conference and corporate business. So, all-in-all, we look very positively towards the end of the year.

BBJ: How would you describe the general hospitality market in Hungary? What are the biggest challenges, and where are the greatest opportunities?

TF: It is good to see that Budapest is really one of the European destinations that attracts returning tourists as well as new “explorers.” The former are from Europe and America, and the latter from the Middle East, India, and even South America. Last year, the palette of the local five-star market increased with some great hotels, which definitely represents a challenge. However, having more quality and luxury hotel supply in Budapest will also, I believe, contribute to enhancing quality tourism in general. For instance, some new retail brands will come and open a base in Budapest, new types of gastronomy will arrive, and so on.

BBJ: How challenging is it to find enough staff of the right quality? Are you involved in programs to help develop the next generation?

TF: After COVID-19, we faced the same situation as many others in business in terms of finding reliable staff. Luckily, we managed

BBJ: What are your targets for the next few years for the hotel?

TF: First of all, we would like to continue the same progress and success that we have experienced in the last two years. The hotel underwent a complete renovation and rebranding in 2022, but there is always room for improvement. In the service we give, the combination of the Anantara luxury brand standards along with “Leading Hotels of the World” expectations is a kind of baseline; however, our goal is to go beyond. In the next couple of years, we also plan to improve the quality of our high-end suites and modernize our meeting and conference facilities.

“Last year, the palette of the local five-star market increased with some great hotels, which definitely represents a challenge. However, having more quality and luxury hotel supply in Budapest will also, I believe, contribute to enhancing quality tourism in general. For instance, some new retail brands will come and open a base in Budapest, new types of gastronomy will arrive, and so on.”

to find real talent – in fact, in all areas – by the second half of 2023. That means we have a stable team and can maintain the very high guest satisfaction of which we are very proud. The main goal at the moment is to retain these excellent team members and offer them future opportunities. We are also in contact with some colleges and universities and participate in their programs, working with trainees, doing site inspections, and giving lectures at various institutions.

BBJ: What could the government do to support the Hungarian hospitality industry better?

TF: There are several ongoing positive initiatives at the moment from the government side; however, destination marketing is critical in this aspect, like tourism campaigns and launching national and international marketing campaigns to promote tourism and travel. It is also essential to support local events and attractions that encourage domestic and international tourism and engagement.

ROBIN MARSHALL

Tamás Fazekas

Three Years a Charm for Matild Palace

On June 28, the Matild will celebrate the third anniversary of its opening as the Matild Palace, a Luxury Collection Hotel in Budapest. General manager Selim Ölmez spoke exclusively with the Budapest Business Journal about opening in a pandemic, the changes in plans that brought and hints at future developments.

BBJ: How do you look back on the past three years?

Selim Ölmez: Initially, we were moving slowly and trying to understand where to head. Now, after three years, we feel more confident. I think this is the number one achievement. I believe our guests also feel more confident in us because we started three years ago during the pandemic. The Luxury Collection is a powerful brand, a collection of iconic hotels, but the name of Matild Palace was very new. When you first put your name into the market, it’s not very easy to say that you are the best. It’s much better if the guests tell us that. Today, they say we are a very important player in the market. This gives us a lot of hope for the future. The

Budapest market is growing every year. I think the outlook is positive, not only for us but also for the Budapest market. You know, there are many different layers to this property; Spago, our partnership with Wolfgang Puck, is one of them. To operate a restaurant successfully in a competitive environment and in a hotel is not easy, but we are delighted with how Spago has established itself. The same is true of our Duchess bar.

Right now, we are looking to the future because we opened this property with

space to say, “Okay, we are doing this, but maybe the world will look different after the pandemic. Maybe we should go in a different direction.” Where we are sitting today, Spago, it’s a result of this. Originally, we were aiming for something else. The location would have been the same, but the look, the feel, the concept, the name of Wolfgang, these are all results of the pandemic; it gave us the courage to stop and think and look at all the plans and make changes. It gives me great pleasure to see that what was implemented during the pandemic paid off. Spago is a very successful concept; we have more traffic, more energy, more guests, which gives me a lot of opportunities to also improve the hotel. Most of the people we host in the restaurant live in Budapest. So, it helped us connect with the market. Despite the challenges, I think the pandemic enabled us to be who we are today.

BBJ: Did you ever consider delaying the opening because of the pandemic?

a very long-term vision. And I think we are successfully implementing our vision. How will we mark the event? We will celebrate with our guests, but especially with our staff. I think now is the time for them to celebrate some success stories. This year, the focus will be on employee engagement. I think we all deserve it. It was a very interesting opening: a new hotel in a pandemic, we did not have the chance to do a grand opening. So, I think our fifth anniversary will be our grand opening celebration. We want to do something special for that, but let’s wait and see.

BBJ: Are you happy with where you are today?

SO: We are happy with what we have achieved. But that doesn’t mean we don’t have anything else to achieve. We are very ambitious. There is always something you can do better. When you look at the past, there are a lot of learnings from these three years. This year, for example, we have just finished our training with Forbes Travel Guide. We want independent evaluators to look at this property so that we can identify areas for improvement. I am pleased about some of the changes that we made during the pandemic. You know, we were running toward a goal with total energy and full enthusiasm. But when the pandemic came, and the whole world stopped, it gave us time to think a little. It gave us

SO: To be honest, no, because our plan was to open this property as soon as possible. In fact, we were planning to open a little bit earlier, in April, but due to the change in the restaurant concept, we had to wait for Spago to be ready at the same time. Normally, when you open a new hotel, you start from zero and start climbing. When we opened, everybody was at the bottom because of the pandemic. Some hotels are still closed today. We were perhaps one of the only luxury hotels opening in all of Europe, so we got a lot of attention from the whole world, which was happy to see something was going on. Let me give you another perspective because it is part of the history of this building, from the Belvárosi Kávéház, which is today the Matild Café house. We have this marble plaque still hanging in a corner of the cafe, which says this was the first business to reopen in Budapest after World War Two. It offered hope for the Hungarian people that life was coming back. We took the same mentality: Let’s open this hotel so that the people can see that things are returning to normal. I think it worked. We always got very positive comments. Since the day we opened, Spago has been on fire; it has a good name on the market, is always among the top 10 restaurants, has a Michelin recommended plaque on the door, and the same guests are returning and dining here with us. It builds an emotional connection with all those people. We have tried to change this perception that this building is all about the hotel; it’s not. It’s much more than that.

BBJ: You mentioned that most of the guests for Spago are Hungarian. What is the breakdown for the hotel, and is that changing?

SO: Our biggest market right now is the United States. The river cruise business has a big impact on that. As it is getting stronger, so are we, since the river cruise guests are looking for a pre- or poststay in the city. Others combine Budapest with a visit to Vienna or other cities on a European tour. We see a similar trend from the U.K. at the moment. We are very good in the German-speaking market; we have a lot of guests from Vienna and Germany, maybe because of the influence

ROBIN MARSHALL

Selim Ölmez

The Duchess VIP Terrace.

of Wolfgang and the restaurant. For the rest, it depends on events. We were very strong in the Israeli market, but you can guess the situation now. Likewise, we used to be very strong in the Russian market. I think the next big thing will be the Chinese market. Last year, we saw a huge increase, almost 600%. That was from a very low base, but it’s still impressive. This year, we are seeing the same trend.

“We have this marble plaque still hanging in a corner of the cafe, which says this was the first business to reopen in Budapest after World War Two. It offered hope for the Hungarian people that life was coming back. We took the same mentality: Let’s open this hotel so that the people can see that things are returning to normal.”

We have guests from everywhere else, like Australia, Japan, and Turkey, of course. Looking at how the industry is developing, I think in the next two to three years, the Indian market will become very important. Listening to the experts and reports on the Indian economy, they are getting richer and are ready to travel the world. Their high net wealth percentage will increase from 1% to 6-7% in the upcoming five years. But what I am really hoping for is that all these conflicts will be resolved peacefully, and then, perhaps, more travelers can return.

BBJ: I’ve often thought launching and running a hotel must be like painting the Golden Gate Bridge. You build it, and then you start painting it, and when you get to the end, it’s time to start at the beginning again. What are the plans for the hotel? Are there extra elements you hope to implement that are not yet in place? SO: It’s exactly like that! You need to revisit topics each and every year, sometimes even sooner. Of course, it’s not only about keeping the physical condition

in good shape. It’s also to keep the team spirit up, the service level up, making improvements. There are a couple of ideas that we want to implement. For example, one of the things that we are always looking at is the cafe. We operated it for two years, but have decided to shut it to the public for now. We are using it as a ballroom for the hotel because we didn’t have one. We still do the cabaret shows once in a while, on special occasions like Valentine’s Day or New Year’s Eve, because I think it’s something that is missing from this city. We are in touch with many world-class concepts, where we might partner with them, as we did with Spago. We are not in a hurry because we want to do things right. And, of course, we will continue to invest. As a group, we are very happy about where Budapest is heading. In the hospitality industry, we see the potential for double-digit growth every year, so maybe we will invest elsewhere in the city.

BBJ: The investors have a Turkish background. Like the Hungarians, the Turks have a reputation for hospitality. Do you think that gives you a special connection or unique insight into the market?

SO: The group’s previous hotel investments were resorts with allinclusive service, which they do exceptionally, by the way. This was their first city hotel and their first international hotel brand partnership. Working with Marriott International is a big commitment. And it’s a huge responsibility to renovate a historical monument. They could have received so much criticism if they got it wrong. They used all their know-how regarding construction techniques and refused to cut corners in terms of cost and quality. They bought the marble in Italy because it is the best quality, but they shipped it to Turkey, where the craftsmanship is better, and from there, they brought it to Hungary. And it cost a lot of money; it’s not a short-term return investment, but it is paying off today. The marble still looks brand new. The hotel has become a great business card for the group in the global hospitality market. When we say today that we are the owner of Matild Palace, everybody has some respect for the investment and the vision.

This is the group’s flagship property; when they go out to the international market, it opens a lot of new doors for them. As I said, maybe we will open another hotel in Budapest in the future, and I’m sure it will be even better than this one if we do. But the Matild gives us the opportunity to spread our name into other markets, whether it’s Paris, the Maldives, or wherever. The group will expand in the upcoming 10-12 years. Currently, it has 18 hotels; by 2035, they are targeting 50. I wouldn’t mind having another group hotel in this city, but perhaps it might be in one of the neighboring countries. I think they started at the right time and in the right place for their international hotel presence.

BBJ: Any last thoughts to share? SO: I would like to thank everyone, the community, our partners for believing in us and supporting us

on this three-year journey, and I hope that we will continue the same tradition for many years to come; without the community, it would not have been possible. Believing in a project is not always easy because not every project becomes a success story. There are always risks, but we are delighted that here we are, still sitting together after three years, talking about the future, not the past.

BBJ: And talking of the future, is there anything you can share about new developments in this building? SO: Could be. We are working on elevating the Duchess right now, so there might be a couple of exciting events over the summer on the rooftop of this palace. Stay tuned. I’ll not give details at this stage, but yes, I think there will be a lot of fun upstairs!

Spago Budapest by Wolfgang Puck.

Wolfgang Puck

Budapest may add 22 Hotels and 3,000 Rooms in 5 Years

The hotel and hospitality sector is once again regarded as an attractive development and investment option. Hungary, and particularly Budapest, is seen as a popular tourist destination, with guest nights in the capital set to return to and exceed pre-pandemic levels.

GARY J. MORRELL

Despite hotel development’s perceived complexities and reliance on short-term stays compared to the more established market sectors, the hospitality sector is successfully attracting players from more traditional commercial property sectors.

Investors are concluding long-term leases and franchise partnerships with leading branded international hotel operators, who provide the expertise needed for the day-to-day operation of the assets, while the owners can concentrate on asset management.

Several hotel projects have been put on hold due to the complexities of development, concerns over financing and rising construction and operational costs; however, Horwath HTL estimates around 22 new hotels with 3,000 plus rooms could open in Budapest in the next three to five years. Budapest hotel supply had reached 224 properties as of the turn of the year. There was a total capacity of 23,000 rooms and more than 50,000 beds.

“Following last year’s significant boom in hotel openings, the Budapest market is expected to stabilize this year. The projected supply increase includes up to six new hotels with 544 rooms, but due to investment delays, we expect about half of this to materialize,” comments Attila Radvánszki, senior director at Horwath HTL Hungary.

“Key hotel openings from 2023, such as W Budapest, Dorothea Hotel, Ibis & Tribe Budapest Stadium and Gin Hotel, a sister property of the Rum Hotel, will see their first full year of operation in 2024. Other notable projects are Kimpton Hotel Budapest, Radisson Collection, and Jo & Joe. Three Corners Hotels will open a new hotel close

to Andrássy út, and the owners of BO18 and BO33 are opening a new hotel in Csengery utca as well,” Radvánszki lists.

“Landmark projects like the refurbishment of the Gellért Hotel, to reopen as a luxury Mandarin Oriental Hotel, and the Lagoon City Project with the region’s first Swissotel will also improve the attractiveness of the Hungarian capital,” he says.

Sustained Growth

“Over the long term, Budapest is likely to see sustained growth due to continuous investments in tourism infrastructure, increasing international connectivity, and the city’s strategic marketing initiatives. With increasing geopolitical tensions in the region and across the globe, Budapest will not be immune to potential black swan events,” Radvánszki adds.

Budapest’s popularity as a tourist destination remains robust, and it continues to be one of the most popular cities in the region, alongside Prague and Vienna, according to Robert Székely, hospitality and leisure expert at the consultants Newmark VLK.

“Notably, in 2023, the RevPAR [revenue per available room] in Budapest was higher than in Prague, its main regional rival. According to forecasts, passenger traffic at Ferenc Liszt International Airport will return to pre-pandemic levels in 2024,” Székely says.

“The largest impact on tourism in Budapest could come from the state’s purchase of Ferenc Liszt International Airport. Meanwhile, hotel supply development is continuing: hotel brands such as Kimpton, St. Regis, Radisson Collection, Voco, Vignette Collection, Moxy, Mandarin Oriental, So, and Swissotel – just to name a few – are entering the market, resulting in a differentiated supply,” he adds.

In a new mid-level Budapest project, IHG Hotels & Resorts has announced

its first Holiday Inn & Suites property in Europe in the 170-room Holiday Inn & Suites Budapest Centrale.

The hotel market has been attracting developers who operate across different sectors. As mentioned above, Wing delivered the 12,000 sqm

Ibis & Tribe Budapest Stadium Hotel within its 42,000 sqm Liberty office development in Budapest. The hotel has 332 rooms that are equally shared between the three-star Ibis and four-star Tribe brands and will aim for Breeam in-use and Access4you accreditation.

“The Liberty reflects our ambition to create a dual-branded hotel with a wide range of services and an outstanding guest experience as part of an internationally acclaimed mixed-use development,” says Noah Steinberg, chairman and CEO of Wing.

2nd Airport Hotel

The developer is also constructing a new hotel in cooperation with the airport operator at Budapest Ferenc Liszt International Airport. The new 167-room Tribe Hotel, which will target Breeam “Good” certification, is being built next to the Ibis Styles Budapest Airport Hotel, which Wing also developed and opened in 2018. It is aiming for Breeam in-use and Access4you accreditation.

A notable trend in Budapest, a Central European city with a wealth of fin de siècle buildings, has been for the purchase and redevelopment of heritage-listed palaces into hotels in prominent protected locations, giving the buildings a use-value while at the same time maintaining the classic feel of the historic city center.

W Hotels, part of the Marriott brand, opened the 150-room and suite luxury W Budapest after renovating

the UNESCO-listed Drechsler Palace opposite the Opera House on Andrássy út. The reconstruction was undertaken by the DVM group with Bánáti + Hartvig Architectural Office as the designers and the London-based consultancy Bowler James Brindley as the interior designers. Another redevelopment of a turn-ofthe-century heritage building into an upmarket hotel is the five-star Matild Palace, a Luxury Collection Hotel, by Melis Investment, owned by the Turkish Ozyer Group. The regeneration of the Southern Klotild Palace, originally built in

1900,

was designed by Puhl and Dajka Architects with the interiors by MKV Design. The project won the “Hotel of the Year” title at the 2023 FIABCI Hungarian Real Estate Development Awards. While not on the same scale in terms of saving an architectural gem, but a significant feat of engineering non-the-less, the BDPST-owned Equilor Asset Management acquired the 360-key Sofitel Budapest Chain Bridge overlooking the Danube in March 2023 and is currently redeveloping the building. Scheduled to open in 2026, the asset will be re-launched as the fashion brand SO/, part of the fast-growing lifestyle hospitality company Ennismore, which is majority-owned by Accor.

“Budapest and the countryside present a dynamic and evolving hotel market with significant growth potential. With the right mix of modern amenities, sustainable practices, and strategic investments, the market is well-positioned for continued success. However, increased focus on destination marketing combined with effective promotional activities by the congress bureau will be essential to unlocking its full potential,” adds Radvánszki.

The Cloud IX Skybar opened on the rooftop of the Ibis & Tribe Budapest Stadium Hotel on May 15.

Bringing Scottish and Hungarian Hospitality Together

Cameron McNeillie, general manager of the Dorothea, a Marriott International Autograph Collection hotel, talks to the Budapest Business Journal about how the market has responded to the latest luxury opening and some very highprofile guests who attended the Grand Opening Party.

world-renowned Italian designer Pierro Lissoni, and then they danced to the tunes of DJ Georgia from Brazil. Overall, it was a fantastic and very successful event.

BBJ: Is it usual to have such highprofile guests as chairman David Marriott and president Satya Anand at an opening like this?

BBJ: Congratulations on the official grand opening. How did you celebrate the event?

Cameron McNeillie: We held an official Grand Opening Party, which was well attended by current and future customers as well as senior members of Marriott International leadership, all of whom were treated to a spectacular show from Recirquel and Győri Ballet, held in the Pavilon Restaurant, while enjoying wonderfully crafted food and beverage delights. Guests took the opportunity to see the unique design of the hotel by

CM: David was on a tour of Europe and visited many Marriott International hotels in several European destinations along with Satya, and we were delighted that our Grand Opening coincided with his visit to Hungary, where he saw several other Marriott International properties.

BBJ: In the pictures from the event, you are in Highland dress. The Hungarians pride themselves on their hospitality. Is this something they hold in common with the Scotts?

CM: Absolutely! Perhaps it is the reason I feel very much at home here

in Hungary. Hospitality is a passion, and entertaining is something myself and my teams do well and enjoy. Making people feel welcome, the experiences you provide and that people remember, is as important, if not more so, than the product you offer.

BBJ: How has the market received the Dorothea Hotel, Budapest, Autograph Collection since your soft launch?

CM: Exceedingly well, being a brand within the Marriott International portfolio provides Bonvoy customers more opportunities to stay in more hotels and the local market has undoubtedly enjoyed and given us wonderful feedback on our food and beverage outlets, from the “Farm to Table” experiences in the Pavilon restaurant to the superbly crafted cocktails among our Anton Bar offering.

BBJ: What are your targets and plans for the hotel moving forward?

CM: We look to offer guests great experiences during their stay and to ensure we not only provide outstanding services in the hotel but also help promote the city of Budapest and, of course, Hungary as a destination. We continuously seek new customer demographics and look to develop new opportunities to grow our business year-on-year.

“We look to offer guests great experiences during their stay and to ensure we not only provide outstanding services in the hotel but also help promote the city of Budapest and, of course, Hungary as a destination. We continuously seek new customer demographics and look to develop new opportunities to grow our business year-on-year.”

BBJ: Finally, how have you found Budapest since you moved here? What has surprised you most?

CM: What a brilliant city it is, with so much to offer in the way of culture, cuisine, and diverse landscape (Buda vs. Pest sides). My family and I enjoy living in Budapest and have met such great people and such an ease of life. The best surprise for me since coming to Budapest is how many good golf courses there are: I am a fan!

ROBIN MARSHALL

Cameron McNeillie

Veszprém Working Hard to Build on its 2023 Achievements as a European City of Culture

Hungary’s “City of Queens” recorded 1.6 million visitors in 2023, but will it all prove to be just a flash in the European pan?

Veszprém’s railway station today is an imposing building; its manicured facade and bright, well-tended flower beds welcome passengers, who access platforms via a subway flanked by large, colorful photos of performing artists and scenes of the city. Graffiti is noticeable by its absence.

It was not always so: Just 18 months ago, departing passengers approaching the station faced a scene reminiscent of the later communist years, with the shabby frontage a mosaic of grimecoated stone and peeling paint.

The dramatic metamorphosis (however last minute) has but one cause: in 2023, after six years of preparation, Veszprém, with a population of just

60,000,

took its turn as a European City of Culture (ECoC).

In just 12 whirlwind months, the city (120 km southwest of Budapest by road) and surrounding country settlements hosted countless events, ranging from concerts by stars like Tom Jones and Joss Stone to local folk dance performances, a wine festival and joint Japanese-Hungarian sculpture sessions.

But in the aftermath, it seems fair to ask: what will remain? Will Veszprém find itself, like cities with poorly planned Olympic projects, lumbered with rotting, unused infrastructure that become local eyesores for decades?

“Not at all,” Alíz Markovits, chief executive of the ECoC, tells the Budapest Business Journal at a cafe in one of the city’s cool, green parks. “From the start, we wanted to create [positive] long-term effects in Veszprém and the region.”

She points to developments in Óváros, the old city center, which towards the end of the last decade was blighted by numerous empty and run-down shopping units.

“There was barely any life there! The challenge was to revitalize it,” she says. Under a Street Management Development Program, the city invited tenders to establish new businesses, offering subsidies to help start-ups past the initial need for capital.

Revitalized Square

“Of course, we couldn’t take responsibility for all the economic problems, but if you go round the old city square, there are surely at least 10 units that have been revitalized, with shops, a sushi bar, a vegan restaurant, a Hungarian restaurant and a breakfast cafe,” she says.

“Only yesterday [a Sunday] morning, I wanted to eat breakfast in Kunszt!, and I couldn’t even get a seat,” she recalls, speaking of what has already become an iconic bisztro-cumcommunity space in the city.

Indeed, Kunszt!, like the railway station, is symbolic of the transformation stimulated by the ECoC project within Veszprém.

As Andrej Tóth, the artist-designer behind the operation, boasts: “A few years ago, I entered [...] a badsmelling Albanian bakery [….] Kunszt! has since become Veszprém’s number one brunch venue, a place for localregional fine arts, theater performances, book launches and exhibitions.”

Zoltán Mészáros, a hotelier, concert promoter and predecessor to Markovits as chief executive of ECoC, also stressed his efforts to put investment into infrastructure from the very beginning. Having “squeezed out some money” from ECoC to enlarge some of the existing hotels (he managed to get HUF 1 billion for the sector, which increased the number of four-star rooms in Veszprem from 160 to 240),

he lobbied for investment into the expansion of facilities such as the Gyárkert (the conversion of a former furniture factory into a concert venue and community center) and CodeLab,

a center for arts and digital experts to combine their skills in creativity, scheduled to open later this year.

“Cultural investment is really worthwhile because it doesn’t disappear; it stands here for decades and serves the needs of the local community, and if it’s built correctly, for longer,” Mészáros argues. Furthermore, this adds to the overall attraction of the city as an investment location.

“If you talk to any international company manager, they survey the town [before investing]. They want to know the livability factors, like how strong is education? How is the safety? What’s the vibe like in the town?” he says.

Local Opinion

But what do the locals think? Approached at random, Péter Szűcs, a mechanical engineer and native to the city, admitted he failed to participate in any ECoC events.

“That was our fault, but my daughter, Judit, and her family were active at concerts and events, which they all enjoyed,” he told the BBJ

“I think it was perfect organization, I mean like VeszprémFest, Utcazene, and [the] Rosé, Rizling and Jazz Days, which helped Europeans get to know our city better. And there was investment around the city, highway development, into religious [buildings], and the city center. We are happy about that,” he said.

Neither the city nor ECoC are devoid of criticism, however. One Budapest resident, who asked to remain anonymous, attended the Nora Jones and Josh Stone concerts last July. While raving about the shows, she was less than flattering about prices at a local spa hotel.

“By the time we got around to it, everything was pretty much fully booked. We paid the exorbitant fee [of EUR 340 per night for two] because it was my birthday treat. The town is really too small to hold such a festival, and with limited accommodation, hoteliers could gouge clients,” she said.

And despite the back-slapping celebrations, service standards could still improve in the city. Sandor Nemeth, a foreign language examiner, found the staff at a national bakery outlet in the city less than welcoming when he arrived five minutes before closing one Saturday in April.

“The staff were cleaning up and made it obvious they didn’t appreciate my custom. But I only wanted a sandwich; it would have taken only two minutes. I walked out,” he says.

Anecdotal, true, but if the city wants to improve its tourism potential, there is work to be done. Yet, Bernadett Grászli, the public culture specialist in charge of the traditional weaving and joint Japanese-Hungarian sculpture exhibition (scheduled to move to Japan later this year), was enthusiastic.

“Here in Veszprém, we’re continuing to build and expand our contacts after ECoC, and that’s good.”

‘It’s not Only Economic Effects.’

While the ECoC events and projects certainly had, and will have, economic repercussions on Veszprém and its surrounds for years to come, Alíz Markovits, chief executive of ECoC, says some of the most important results of the entire project are less tangible, but potentially equally, if not more important for the general well-being of the population.

“ECoC has effected behavioral changes in the local people. Restaurants began to open

terraces, and people have become much more social, more open. It’s not only the direct economic effects, but there’s growing cooperation here and between villages,” she says.

Quite how these trends can be evaluated is a difficult question, but a comprehensive survey of attitudes currently underway could be one indicator of improvements in the mental and psychological health of the population as a result of ECoC.

KESTER

ECoC CEO Alíz Markovits.

Photo by Csaba Toroczkai / ECoC

Travel the World in (Less Than) 80 Days at Balaton’s BalaLand

The Mövenpick BalaLand Resort Lake Balaton probably has one of the most unusual hotel names in Hungary.

General manager Peter Knoll, who only took over at Szántód on May 1 this year, discusses its breakdown of guests and hints at some of his plans for developments.

BBJ: What is unique about Mövenpick Balaland Resort Lake Balaton?

Peter Knoll: Being the first internationally branded hotel at Lake Balaton already makes it a unique location. Moreover, it is a combination of a themed hotel, where you can enjoy the story of Willy Fog (Phileas Fogg), who traveled around the world in 80 days. The story by Jules Verne is key to all the areas that you can enjoy, be it the hotel restaurants, the family park, your room, or the massive playground between the hotel and the shore of the lake. It is ideal for families that want to have an unforgettable experience. But with our culinary offerings as the heritage from Mövenpick, as well as our spa, with breath-taking views over to Tihany, the hotel is also a great spot for those young at heart travelers without families.

BBJ: Tell us a little more about Mövenpick Balaland. When did it open, what was the investment, what are your occupancy rates like?

PK: Last April we celebrated our first birthday, and it was really a full-year birthday, as we are open for the entire year. Heading into our second summer, we are improving our services and adding touches to make our guests feel even better. After our successful first year, our aim is to continue to strengthen our occupancy rates in the following years, and throughout the whole year.

BBJ: Beyond the resort itself, why should foreign tourists or expats living in Budapest come visit the “Hungarian Sea?”

PK: Living in Hungary on and off since 1995, I can truly say that the Hungarian Sea has developed into an area to be visited not only by Hungarians.

in Brief News

MTSzA Applauds State Purchase of Airport

The Hungarian Tourism Association Foundation (MTSzA), representing more than 40 professional organizations operating in the field of tourism, has welcomed the purchase of the Budapest Ferenc Liszt International Airport and expects a significant increase in international traffic from the majority state ownership. According to the MTSzA, the return to state hands of Budapest airport is an essential step in strengthening Hungary’s leading regional role in Central Europe.

The airports of Hungary’s regional competitors, such as those in Warsaw, Prague, Bratislava, Bucharest and Sofia, are all 100% state-owned, while the Austrian community owns the majority of the Vienna airport, MTSzA says.

German Travelers Spend Most Among Foreign Tourists

German travelers to Hungary spent HUF 476 billion in the country last year, more than any other nationality, according to data compiled by the Central Statistical Office (KSH). Austrian

“Living in Hungary on and off since 1995, I can truly say that the Hungarian Sea has developed into an area to be visited not only by Hungarians. The variety of products, quality of services, and sheer number of attractions have multiplied over time. Just looking at the most recent Michelin Guide where there are several recommended places to make a trip here worthwhile, even outside of the summer season.”

The variety of products, quality of services, and sheer number of attractions have multiplied over time. Just looking at the most recent Michelin Guide where there are several recommended places to make a trip here worthwhile, even outside of the summer season.

BBJ: What are the percentage shares between foreign tourists and local guests?

PK: This varies very much on the time of year and the holiday seasons in the different markets. We can see a big increase in the number of guests coming from neighboring countries, Austria, Slovakia, and Slovenia, as well as near neighbors Germany and Poland. Hungary has always been a great spot to visit for Israeli guests, and we have our fair share as well. But, in the year overall, Hungarians make up the majority of our guests.

travelers spent the second most at HUF 466 bln. Together, travelers from the two countries accounted for 30% of the HUF 3.137 trillion of total spending by foreign visitors to Hungary in 2023. Romanian travelers spent HUF 218 bln in Hungary last year, visitors from Slovakia spent HUF 157 bln and visitors from the United Kingdom HUF 151 bln. Visitors from the United States spent HUF 139 bln.

Gov’t Supporting Gypsy Musicians With HUF 1 bln

From a budget of HUF 1 billion, the government will support the employment of 456 musicians from around 100 ensembles across the country for four months through the Muzsikáló Hungary 2024 program, which began with a largescale opening event in Budapest on June 15, known as Pista Dankó

BBJ: What are your targets and plans for the hotel moving forward?

PK: I have the idea to create a niche meeting product, just as the hotel itself is a niche product. We have a space in the hotel that is the perfect “Think Tank” and with the attractions in the hotel and surroundings, it is my dream to have “adventure meetings.” It is too early to go into details, but I have just put together the right team to work on this. So, watch this space, there is news to come.

Memorial Day, the Hungarian Tourism Agency (MTÜ) says. According to hrportal.hu, 97 gypsy bands of 4-6 members, consisting of strings, clarinetists and dulcimer players, will play for four months in catering establishments cooperating with the program. Through the subsidy, the government will take over the cost of live music in restaurants four days a week, three hours a day, from catering establishments. Pista Dankó Memorial Day aims to preserve the centuriesold tradition of Roma music played in coffee houses and restaurants and raise awareness of this unique genre’s cultural and touristic significance. It is named for the legendary if short-lived Roma bandleader Pista Dankó (1858-1903), who died of lung disease aged just 44. He was particularly noted for popularising the nóta folk dance music style.

Peter Knoll

Opening a business doesn’t make you a businessman.

4-star Hotels in Budapest

Ranked by no. of rooms

6

KFT. www.continentalhotelbudapest.com

/ DANUBIUS

ZRT. www.danubiushotels.com/hu/ szallodak-budapest/danubius-hotelhelia

ZRT. https://all.accor.com/hotel/1688/index. en.shtml

Heréb

Jávorka

1123 Budapest, Alkotás utca 63–67. (1) 372-5400 h0511-rm@accor.com

1087 Budapest, Baross tér 7–8. (1) 279-9000 budapest@ intercityhotel.com

1074 Budapest, Dohány utca 42–44. (1) 815-1000 continentalinfo@ zeinahotels.com

1133 Budapest, Kárpát utca 62–64. (1) 889-5800 reception.helia@ danubiushotels.com

1013 Budapest, Krisztina körút 41–43. (1) 488-8185 h1688@accor.com

1067 Budapest, Teréz körút 43. (1) 889-3900 manager.budapest@ RadissonBlu.com

Szajcz

1065 Budapest, Révay utca 24. (1) 269-0222 opera@kkhotels.com

1117 Budapest, Dombóvári út 25/A (1) 655-5314 info-budapest@ radisson.com

1094 Budapest, Tompa utca 30–34. (1) 477-7200 reservations.budapest@ leonardo-hotels.com

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

BUdapest, Margit-sziget (1) 889 4700 res.th@ hu.ensanahotels.com

1052 Budapest, Városház utca 20. (70) 645-9590 info@emeraldsuites.hu

1101 Budapest, Expó tér 2. (1) 263-6800 office@expohotel.hu

1137 Budapest, Vígszínház utca 3. (1) 814-0000 nhbudapestcity@ nh-hotels.com

Budapest, Hold utca 5. (1) 510-3400 info@hotelpresident.hu

Kata Szalóky Lilla Takács Bence Bayer

1081 Budapest, Népszínház utca 39–41. (1) 299-0256

Katalin Sóvári

Szabolcs Péli

Adrienn Pucher

Nagy-Szász Zsuzsanna Batykó Szűcsné Dóra Anek

1088 Budapest, Trefort utca 2. (1) 485-1080 reception@museumhotel. hu

1061 Budapest, Andrássy út 8. (1) 611-7000 hotel@hotelmoments.hu

1052 Budapest, Apáczai Csere János utca 7. (1) 799 8400 budapest@ zenithotels.com

1056 Budapest, Belgrád rakpart 24. (1) 550-5800 hotel@hotelvision.hu

1051 Budapest, Vigyázó Ferenc utca 5. (1) 920-1000 prestigereception@ zeinahotels.com

1088 Budapest, Lőrinc pap tér 2. (1) 235-4000 info@hpz.hu

1052 Budapest, Piarista utca 6. (1) 799-0088 info@laprimahotel.hu

1056 Budapest, Váci utca 83. (1) 799-7170 info@estilohotel.hu

1063 Budapest, Munkácsy Mihály utca 5–7. (1) 462-2100 reservations.andrassy@ mamaison.com

1054 Budapest, Kálmán Imre utca 19. (1) 374-6000 hotel@parlament-hotel.hu

1074 Budapest, Szövetség utca 33. (1) 796-3270 reception@bo33hotel.hu

1092 Budapest, Hőgyes Endre utca 4. (1) 610-4700 fo-lifestylehotel@ threecorners.hu

& Boutique Hotels in Budapest

Ranked by no. of rooms

2

budapest@ihg.com 3

1052 Budapest, Apáczai Csere János utca 4. (1) 486-5000 reservations@ marriotthotels.com

1051 Budapest, Erzsébet tér 7–8. (1) 429-3777 hotel.corvinus@ kempinski.com

1014 Budapest, Hess András tér 1–3. (1) 889-6600 info.budapest@hilton.com

Philippe Mahuas

1036 Budapest, Árpád fejedelem útja 94. (1) 436-4100 info@aquincumhotel.com

7 DOROTHEA HOTEL, BUDAPEST, AUTOGRAPH COLLECTION / DOROTHEA HOTEL SZÁLLODAÜZEMELTETŐ ZRT. https://www.marriott.com/en-us/hotels/ budkc-dorothea-hotel-budapestautograph-collection

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1052 Budapest, Petőfi Sándor utca 2–4. (1) 576-1600 info@parisiudvarhotel.com

1052 Budapest, Piarista utca 4. (1) 235-1800 budapest.reservations@ marriotthotels.com

1064 Budapest , Podmaniczky utca 45. (1) 616-6000 mystery@ mysteryhotelbudapest.com

1013 Budapest, Clark Ádám tér 1. (1) 610-4890 reception@ hotelclarkbudapest.hu

5 Socialite

Budapest’s Lufiland Experience Pumps up Balloon Art

At Budapest’s BOK hall until the middle of August, Lufiland is the work of worldfamous Dutch balloon master Guido Verhoef, a team of professional balloon designers and 150 volunteers.

Created using 500,000 balloons and covering 4,000 sqm, Lufiland includes replicas of the Eiffel Tower, the Leaning Tower of Pisa, the Great Sphinx and Budapest’s own Chain Bridge. There’s also a “fun zone” where children can create with balloons. Verhoef is proud to say that Lufiland is environmentally friendly.

“We work with 95% air and only 5% material,” he tells me. “The 500,000 balloons we’ve used will disappear into roughly 10 to 15 large garbage bags.”

A European School for Performing Arts graduate, Verhoef has worked as a balloon artist, designer, teacher and pioneering producer of large-scale balloon projects and shows since 1991.

He also directed the first balloon fashion shows in Europe, Asia and the United States. These feature outfits made from individual large balloons or lots of smaller ones. I’m not sure what the point is, but the results look great.

Among Verhoef’s many honors are three Lifetime Achievement awards for his dedication to the international balloon industry. Balloon art is not just colorful hot air to him. He’s organized the making of balloon rhinos to raise awareness about poaching in Africa and created a 26 meter

“Dove of Freedom” in Israel near the Syrian border during the conflict with IS. I caught up with the upbeat, pumped-up Verhoef, who was in Los Angeles teaching a balloon art masterclass, to learn more about Lufiland. Incidentally, if you hadn’t guessed, “lufi ” is Hungarian for balloon.

Working as a performing artist, Verhoef discovered that “Balloons are a very strong communication tool and an international language that everyone understands. They’re the symbol of happiness and celebrating the moment. I realized that when I used them, I was provoking powerful emotions,” he tells me.

With Lufiland, Verhoef aims to create a dream world, but one where the most essential element is adventure.

No Fixed Route

“In most exhibitions, people follow a fixed route that allows them to see exhibits. Then they leave. We wanted to give them an experience they’ll never forget, and that’s not so easy. It made us think: ‘What are the things in life that automatically get stored on our mental hard drive?’”

It dawned on Verhoef that “The most important thing for a lot of people is creating memories by traveling. If you have a great trip to a country, you hold on to your memories. And, because our identity is made up of what we’ve experienced in the world, all the memories we accumulate make us us. With Lufiland, we want to give something to people they’d remember.”

When visitors enter Lufiland, they’re given a passport. Rather than walking down a prescribed route, they’re free to explore the balloon world and create their own adventure.

Radiating certainty, Verhoef says “It’s such a unique experience I can guarantee you’ll remember it for the rest of your life.” Laughing, he adds, “Everything I tell you now maybe sounds a little over the top. But when you see Lufiland, you’ll understand.”

To create the Lufiland experience, Verhoef and his team first visualized the balloon world in 3D and then divided it into sections to be completed by artists with particular skills. As Verhoef explains, “Some artists specialize in making buildings, others animals or birds. We find the best artists worldwide to make sure each element of the exhibition is as good as it can be.”

Although Verhoef and his team have been doing balloon exhibitions all over the world, this is the first time an experience of this size has been brought to Europe.

“Budapest is a wonderful cultural center,” Verhoef explains. “It’s really central in Europe, which means visitors to the city can connect with what we want to share.”

Lufiland came about when Roy Milo of Hadran, the Hungarian promoter of exhibitions, concerts and events, contacted Verhoef. Apart from the Van Gogh Immersive Experience currently running in Budapest, Hadran has been responsible for Dali and Klimt experiences as well as the Brickpark Lego Exhibition (known as KockaPark in Hungarian) and Dinoworld, both at the Campona shopping center.

Talented and Experienced

“Hadran are very talented and experienced exhibition owners,” Verhoef told me.

“Roy and I clicked and agreed that, together, we could make Lufiland a reality.”

Up until the emergence of Verhoef and others like him, most of us would have pictured balloons twisted into not especially convincing Daschund shapes if we thought of balloon art. According to the Dutch artist, the reality is very different.

“I’m not saying that everything created with balloons is automatically art because that’s simply not true, but we are pioneering a new art form,” he argues. “I work with sculptors, fine artists and conceptual artists on different projects. Which can be particularly challenging. One of the things we wanted to show with Lufiland, where we’re working with some of the most talented balloon artists in the world from Japan, China and the States, is that balloons are a pop – pun intended – art form.”

Verhoef’s use of the word “pop” allowed me to slip in the question I’d been wanting to ask all along: how does Verhoef take down a balloon exhibition?

“We pop the balloons, yes,” he says, “with a pin or knife. It’s a big popping party.” That must be therapeutic, I say. I’m thinking of “looners,” people who get off on popping balloons. Verhoef sighs. “For some people, maybe, but remember that Lufiland is made out of

500,000 balloons.

After the first 100, it just becomes work.” I didn’t ask the other question that had popped – sorry – into my mind: Are visitors to Lufiland searched for pins on their way in?

Lufiland is at the BOK Sportcsarnok, Dózsa György út 1, Budapest 1146, near the Puskás Aréna. You can find out more, including opening hours and ticket prices, at lufilandbudapest.hu/en/

DAVID HOLZER

Cooling Down in the Summer Swelter With Some Italian Flair

Ice cream is a popular sweet delicacy around the globe, and Hungary is no exception. However, authentic Italian gelato is not always easy to come by. Celebrity chef Gianni Annoni, who has been living in Hungary for decades and is the inspiration behind and owner of the Pomo D’oro eatery brand, revealed the secrets separating a good cone of ice cream from a great one.

BENCE GAÁL

Traditional Italian recipes use fresh milk, cream, and natural flavorings, complemented by carefully selected fruits and nuts. It contains less fat than an average scoop ice cream, which enhances the intensity of its flavors. During mixing, less air is incorporated into the ingredients, resulting in a denser and creamier texture. Whether it’s traditional

Culture

Culture Matters

A regular look at culture issues in Hungary and the region

ice cream or a water-based sorbet, the result is a richly flavored yet light dessert.

Annoni said that one significant difference between ice cream consumption in the two countries he has called home is that in Italy, it is available in most places year-round, while here in Hungary, it is seen more as a seasonal delicacy. As something of a traditionalist,

in Brief News

China Cultural Center Opens in Budapest

The China Cultural Center in Budapest opened its doors on June 20 with an exhibition of images of everyday life in Shanghai and Suzhou captured by Hungarian photographers. According to index.hu, outgoing Minister of Culture and Innovation János Csák said the center was another sign of HungaroChinese friendship and longtime mutual respect. The cultural center is a “milestone” of cooperation between Hungary and China that extends to economy, trade and finance as well as culture, he added. Csák, who will step down at the end of June, said his successor, Balázs Hankó, shared the same commitment to supporting Sino-

Hungarian ties. China’s Ambassador to Hungary, Gong Tao, acknowledged the Hungarian government’s full support for the cultural center. He hoped it would further strengthen the cultural and economic ties between the two countries. Jin Hao, who heads the institute, said the China Cultural Center had been several years in the making.

Commemorative Coins Honor Nobel Winners

The National Bank of Hungary (MNB) issued two more commemorative coins in its series honoring Hungarian Nobel Prize winners on June 18, according to a release on the MNB’s website. The coins feature Katalin Karikó, who won the Nobel Prize in Physiology or

he noted that he was not a fan of some of the trendy ways of serving ice cream.

“Flower-shaped servings of ice cream? No way. It only holds its shape because of the high sugar content. Also, the first time I had something like this was in 1979, so they are just reinventing the wheel,” he said.

The Italian restauranteur also emphasized the importance of the right

Medicine with her research partner Drew Weissman for discoveries that enabled the development of effective mRNA vaccines against COVID-19, and Ferenc Krausz. He was awarded the Nobel Prize in Physics with his French colleagues Pierre Agostini and Anne L’Huillier for experimental methods that generate attosecond pulses of light to study electron dynamics in matter.

Gizella Cellars Tokaj Among Best in Show at Decanter Awards

A 2019 Tokaj Aszú from Gizella Cellars has won a “Best in Show” award at this year’s Decanter World Wine Awards. The sweet white wine was the only Hungarian vintage among the 50 Best in Show winners. “On the palate, it is thick-textured and sweet, with a delicate grape-acid balance but with those botrytis notes bringing both structure and complexity all the way through the palate to a long, creme-anglaiserich finish,” the contest tasters said.

temperature. During gelato preparation, ingredients must be kept between -4 and -6°C (24.8-21.2°F), while the finished ice cream should be stored between -14 and -12°C (6.8-10.4°F). Precise temperature control ensures a creamy texture and proper structure. Controlling humidity during storage is also essential to avoid crystallization and maintain the smoothness of the ice cream.

Keeping Cool With Candy

At Gelateria Pomo D’oro, this season’s gelato offerings are kept cool thanks to Candy refrigerators.

“I am delighted to collaborate with Candy, as their products can be used in a wide range of kitchen applications. Whether preparing hot dishes, drinks, or desserts, Candy appliances, with their Italian roots, are a great help in both preparation and storage,” Annoni said.

“The Total No Frost technology in their refrigerators, which prevents frost and ice build-up through a system of a compressor and an evaporator, indirectly contributes to making our ice cream even creamier than we imagined,” he emphasized.

Márton Rózsa, managing director of Candy Hoover Hungary, stood alongside Annoni.

“We believe in innovation, as our products are made using the latest technological developments to make daily household chores easier for our customers. We consider renewal and up-to-dateness important not only for our household appliances but also for our brand,” Rózsa said.

“Therefore, I am proud to announce that Candy is renewing its logo and introducing a new look in the second half of this year, which even more accurately reflects the modernity and quality of its products,” he concluded.

Hungary has ‘Important Role in Renewal of Olympic Movement’ Hungary is playing “an important role in the renewal of the Olympic movement” by hosting the inaugural Olympic Qualifier Series, Minister of Foreign Affairs and Trade Péter Szijjártó said on June 21 after meeting with International Olympic Committee (IOC) leaders in Budapest. According to origo.hu, Budapest’s Ludovika Campus hosted the final leap for athletes in BMX freestyle, breaking, skateboarding and sport climbing to secure a spot at the Olympic Games in Paris from June 20-23. The first stop of the Olympic Qualifier Series was in Shanghai in May. Speaking to journalists at the Ludovika Campus, IOC head Thomas Bach said the divergent contexts of Shanghai’s urban culture and Hungary’s culture of sport were a compelling combination. “Hungary and Budapest can be very proud of organizing this,” he added.

Celebrity chef Gianni Annoni and an oldschool Piaggio Ape mini mobile gelato van.

Chamber of Commerce Corner

Hungarian-Norwegian Chamber of Commerce (HNCC)

Under its Next-KPI program, HNCC organized a stand for three Hungarian electrotechnical companies (Emika, EmbedPro, and Silveria) at the Eliaden trade fair in Lillestrøm, Norway on May 28. This initiative aimed to increase the visibility of their products and services, expand their networking, and facilitate their entry into the Norwegian market. Emika specializes in critical infrastructure protection and advanced drone technology. EmbedPro, with more than 15 years of experience, excels in software development. Silveria Electronics is renowned for its high-quality electronic manufacturing services. Svein Sandor Bognar, chairman of the HNCC, officially opened the stand and welcomed the company representatives.

Italian Chamber of Commerce for Hungary (CCIU)

On June 17, the CCIU hosted a roundtable on “Composting, Anaerobic Digestion, and Biodigester Plants” at the HQ of chamber member CIB Bank in Budapest. Key speakers included engineers Massimo Rogante, president of Cosmari S.r.l., and Brigitte Pellei, the firm’s general director. Attendees also featured representatives from MSP Group Kft., Tortellino Kft., Terra Vita Kft., and DAP Kft., along with Tibor Kun, a former Hungarian Ambassador to Mexico. Representatives from the Hungarian waste management company NHKV Zrt. were also present. Known for his work in nuclear and mechanical engineering, Rogante discussed the Rogante Engineering Office (REO), which applies neutron techniques for advanced nondestructive material characterization. Cosmari S.r.l., serving 55 municipalities in Macerata province, manages waste collection, disposal, recovery, and composting, making the area a leader in waste management in the Marche region of central Italy. The conference, opened by»CCIU president Bernardino Pusceddu, provided a platform for discussing emerging issues in biological treatment, focusing on challenges and opportunities in the fertilizer market. The engineers presented Cosmari’s activities, referencing the recent publication “The Biodigester Plant for the Treatment of Organic Fraction of Municipal Solid Waste.” This event fostered a synergy that led to Rogante organizing a visit to the Budapest Neutron Center. There, along with the center’s scientific director, he explored potential applications of the advanced techniques discussed during the roundtable.

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

Hungarian-French Chamber of Commerce and Industry (CCIFH)

More than 240 guests gathered to celebrate “La vie en Rose” at the CCIFH’s June 14 Garden Party on Buda Hill, surrounded by nature, lanterns and chansons. The event was opened with greetings from chamber president László Károlyi and Ágnes Ducrot, the CCIFH director, who presented her special thanks to the sponsors and partners of the event. For the event, guests could literally see the world through rose-tinted glasses in a picturesque setting, away from the city’s noise, enjoying pink sweets and the various pink cocktails accompanying the buffet. The great atmosphere was elevated by the live music of Edith Piaf’s chansons (including “La vie en Rose”), piano playing, and jazz. The relaxed French lifestyle, atmosphere and environment provided an ideal platform for lively conversations and expanding professional connections, a perfect blend of business and pleasure.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

On June 13, DUIHK celebrated its traditional garden party with more than 300 guests. In addition to representatives from member companies, numerous others from their partners, politics and administration attended the chamber’s last major networking event before the summer break. President András Sávos reminded everyone that the DUIHK has now entered its fourth decade after celebrating its anniversary last year. He wished all those present a restful summer so that they could tackle the demanding challenges of business life with renewed vigor and fresh ideas in the fall. A dozen lucky guests could win one of the 12 prizes donated by eight members for the raffle. The main prize was a trip to Germany, provided by the German National Tourist Board and Best Western Hotels. After the summer, DUIHK will start the second half of the year with its Back to Work Cocktail on Aug. 29.

Belgian Business Club (Belgabiz) and

the NetherlandsHungarian Chamber of Commerce

(Dutcham)

Belgabiz and Dutcham held a joint networking Summer Drinks on June 20 at ODA Czakó kert (Czakó utca 15, Budapest 1016). The members of the Belgian and Dutch business communities spent an evening in a light ambiance on the terrace, building valuable contacts around the delicious pizzas and some drinks. This event again proved that serious business can go hand-in-hand with joyful moments and much laughter. The pop-up raffle game highlighted the evening, with the prizes being fine wines from TokajArtWine.

Canadian Chamber of Commerce in Hungary (CCCH)

Join the CCCH on July 1 for a festive celebration of Canada Day, marking the 157th anniversary of the Constitution Act of 1867. In Canada, the holiday is celebrated with fireworks, parades, barbecues, concerts, carnivals, and picnics. Here in Budapest, the CCCH will host a laid-back event featuring classic Canadian favorites like burgers, beers, and doughnuts. This is a fantastic opportunity to connect with fellow community members, celebrate Canada’s heritage, and enjoy delicious food and drinks in a relaxed atmosphere. • When: Monday, July 1, from 6 p.m. • Where: Pasarét Bisztró, Pasarét út 100, Budapest 1026. • Fee: Members HUF 15,900; non-members HUF 21,900 (excluding VAT).

The Anantara New York Palace is an architectural ode to Europe’s Belle Époque. A marble façade is adorned with ornate carvings and a clock tower, while inside, impressive columns, chandeliers and frescoes transport you to another era.