Diplomacy & Trade 2018 August

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NEARLY 30 AMBASSADORS TO HUNGARY WILL HELP WELCOME 500,000 VISITORS FROM MORE THAN 60 COUNTRIES TO THE ISLAND OF FREEDOM! For the 26th time, the annual Sziget Festival in Budapest opens on August 8, offering every thinkable style of music from rock to punk and from electric to classical, to the enthusiastic crowds. The biggest music and arts festival in Europe celebrates music, art, theater and dance based on the principles of freedom and tolerance.

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“I am pleased to observe that the economic ties between Hungary and Switzerland continue to flourish and I am hopeful that our engagement contributes to the further deepening of bilateral exchange.” The Ambassador of the Swiss Federation to Hungary, Peter Burkhard also mentions Switzerland’s interest in the development of Hungarian vocational education, strong bilateral cultural ties as well as how positively ‘1956 Hungarians’ have influenced the cultural openness of Swiss citizens.

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In each issue, Diplomacy&Trade brings a top executive into focus in a personal interview about 18007his or her career and professed values. This time, we present the CEO and Executive Chairman of the Formula One Group, Chase Carey. He explains why he changed from the world of media to car racing after almost three decades, 980700 and how values like team-work are important both in sports and business. see article on pages 8-9 18008

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letter from the publisher August 1, 1291 marked the establishment of the Swiss Federation. In recognition of this anniversary, Diplomacy&Trade is pleased to present Switzerland and Swiss-Hungarian relations as our August country focus. This is our largest ever Swiss Focus with lots of interesting articles highlighting exceptional Swiss companies that have invested in Hungary.

The Swiss Business Day is a biannual event that showcases the many aspects of Swiss-Hungarian economic relations. Ambassador Peter Burkhard says that this has proved to be a fruitful networking platform serving the strengthening of both business and political contacts.

The themes (innovation and talent) of the latest Swiss Business Day touched upon the interests, efforts and business conduct of the Swiss businesses established in Hungary. The Business Day was organized by the Swiss-Hungarian Chamber of Commerce, described by its leaders as a ‘colorful chamber’ with a 100-strong membership. They say the Chamber is working to prove that Switzerland is not just ‘chocolate, mountains and watches’, in which they are world leaders!

Ambassador Burkhard also talks, on the apropos of the current migration crisis, about the successful integration of the 1956 Hungarian refugees into Swiss society. I would like to express my appreciation to the Ambassador for the excellent cooperation we received in the preparation of this focus.

The ‘Executive World’ section, which debuted in our July issue, features Chase Carey, the Chief Executive Officer and Executive Chairman of the Formula One Group. Carey, who is also the Vice Chair of 21st Century Fox, and a Non-Executive Director at Sky Plc., talks about his decadeslong experience in the world of media and his move to motorsports management.

The WittyLeaks column is authored by the Thai Ambassador Jakkrit Srivali who describes his experiences in Hungary about the popularity and authenticity of Thai massage, food and boxing in this country.

Our gastronomy section focuses on the northeastern Hungarian town of Eger, while the hospitality pages present two award-winning fivestar hotels in Budapest.

August is the peak of the summer season with all of Europe on the move. Hungary is packed with tourists enjoying our beautiful country and its many attractions while more Hungarians than ever go exploring internationally. I wish all travelers great adventures.

Education: listing international schools in Hungary

The advantages and disadvantages page 10 of illegal immigration page

pages 36-37

The best terraces in Budapest

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Peter Freed PUBLISHER

AND DON’T FORGET

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05 ON THE RECORD 06-07 COMPANY BRIEFS 08-09 EXECUTIVE WORLD

Chase Carey, CEO and Executive Chairman of the Formula One Group 10 ANALYSIS ‘Stonewall’ Trump and the Mexican border 12-32 SWISS FOCUS Interview with Ambassador Peter Burkhard; Swisscham; Eisberg; Givaudan; Roche; Swiss tourism; SIKA; Lyreco-Nespresso; SGS; Novartis; Btech; Helvetic Dental 34 SOCIETY

35 WITTYLEAKS

by the Ambassador of Thailand 36-37 EDUCATION Listing international schools in Hungary 38-39 WHAT’S ON Concerts, festivals, events and exhibitions in and out of Budapest 41 TERRACE 42 GASTRONOMY Macok Bisztró; 2nd Vino Festival 43 HOSPITALITY Award winning service providers

GERMAN FOCUS – COMING SOON

CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Jakkrit Srivali PHOTO CONTRIBUTORS: Sándor Csudai - www.facebook.com/csudaisandor (Cover - Sziget), Sutton/Sutton Images/Motorsport Images (Cover - Executive World),

Depositphotos.com, Embassy of Mexico, Colliers International Hungary, HIPA, Qatar Airways, AccorHotels, Sutton/Sutton Images/Motorsport Images, swiss-image. ch/(Ricardo Perret, Dominik Baur, Andreas Gerth, Christof Sonderegger, Andre Meier), Eisberg, Givaudan, Roche, Gábor Ancsin, Andre Meier/Switzerland Tourism, Zsolt Venczel, Nespresso, Embassy of France, Embassy of Mexico, Sándor Laczkó, Attila Németh/US Embassy, La Perle Noire, Embassy of the Kingdom of Thailand, Billionphotos.com, Balázs Tokaji, eloadasok.com, Bernard Rie, Jewish Cultural Festival, Sándor Csudai - www.facebook.com/csudaisandor, Norbert Porcio/www. trilite.hu, Gordon Parks - Time Life Pictures/Getty Images, György Szántó, Vozary Film, afstudio.hu, Hilton Budapest, The Ritz-Carlton, Budapest, Csaba Pelsőczy, Daniel Ammann, MTI Photos: Zoltán Balogh, Zsolt Szigetváry, Zsolt Czeglédi, Szilárd Koszticsák, Csaba Krizsán

Diplomacy&Trade is preparing a special section on Germany, Europe’s financial powerhouse and Hungary’s most significant investor, in recognition of the upcoming anniversary of German reunification. German Ambassador to Hungary, Volkmar Karl Wenzel has been here for one year. During this period, several new German investments have been announced or have actually been started, among others by firms that are well-established here, such as Mercedes and Bosch. Another development is the rising proportion of small and medium-sized enterprises among German investors in this country. In addition to this financial growth, we will present bilateral relations as seen by the German-Hungarian Chamber of Industry and Commerce, the Deutsche Wirtschaftsclub or the Goethe Institut.

Copyright 2004-2018 DUAX Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by DUAX Kft. The opinions published in the magazine do not necessarily reflect the opinions of DUAX Kft.

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on the record

Mexico-Hungary Political Consultation Mechanism was held in Budapest this July.

In an atmosphere of cordiality and frankness, topics of the bilateral, regional and multilateral agenda were discussed. According to a report released by the Mexican Embassy in Budapest, the two parties noted that, thanks to the good state of the bilateral relationship, progress could be made in the consolidation of economic, commercial, cultural and scientific-technical cooperation.

With regard to the economic matters, the two parties recognized the rapid growth of trade, but also noted that there are still space for progress in areas that have not been fully exploredIn that sense, there was a commitment to promote visits by businessmen to both countries through institutional channels. The Hungarian side reaffirmed its commitment to accelerate the legislative process for the ratification, by the Hungarian National Assembly, of the renewal of the Mexico-European Union Global Agreement.

In terms of cooperation, the implementation of the scholarships awarded by the Hungarian government to Mexican students through the Stipendium Hungaricum scholarship program was reviewed. Each year Hungary offers forty scholarships ranging from undergraduate to doctorate level and which can be taken in English, French, German and Hungarian. Meanwhile, Mexico awards five annual scholarships of excellence for Hungarian students who wish to pursue postgraduate studies in the Latin American country.

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GERGELY BOTÁR/PRIME MINISTER'S PRESS OFFICE, EMBASSY OF MEXICO, ZOLTÁN BALOGH/MTI, ZSOLT SZIGETVÁRY/MTI, DEPOSITPHOTOS.COM

HUNGARY INCREASES ITS CONTRIBUTION TO NATO’S EFFORTS “In view of the continuous challenges facing the international security system from both east and south, Hungary is increasing its contribution to NATO’s efforts”, Minister of Foreign Affairs and Trade Péter Szijjártó said in a statement to Hungarian reporters at the recess of the two-day NATO summit in Brussels this July. He stated that Hungary is also continuously increasing its contribution to enable NATO to increase in strength, the country has begun a comprehensive reform of its defense force that will enable the establishment of a military that is competitive at regional level.

A report by the Hungarian news agency MTI says Hungary has begun the modernization of military capacities, and the Hungarian Defense Force is procuring 100 new helicopters at a cost of HUF 100 billion (EUR 4.8bn). According to the minister, Hungary’s defense spending will reach 2% of GDP in accordance with previous agreements – “thanks to the Zrínyi 2026 defense and military development program.”

The Hungarian government has decided to increase the 117-strong Hungarian contingent reinforcing NATO’s mission in Afghanistan by a further 12 military personnel, in addition, it will be extending its period of financial contribution to 2024 instead of the original 2020, meaning it will be contributing USD half a million each year to developing the capacities and capabilities of the Afghan security forces.

The government has also decided to join NATO’s training mission in Iraq, which is aimed at enabling Iraqi security forces to protect the territories that have been regained from the Islamic State terrorist organization. “Hungary is contributing 167 military personnel towards the global coalition against ISIS, which it will soon be increasing to 200”, the minister added.

For Hungary, the stability of the Western Balkans is a priority interest, and accordingly, 390 Hungarian soldiers will soon begin a tour of duty with NATO forces serving in Kosovo (KFOR), giving Hungary the fourth largest military contingent in the region. As a sign of solidarity towards the Baltic States, the Hungarian Air Force will be returning to the region in 2019 to participate in the defense of Baltic airspace.

HUNGARIAN MEDICAL TEAM TO HELP REFUGEES IN BANGLADESH A team of Hungarian doctors went to Kutupalong, Bangladesh in July to work as volunteers in a refugee camp holding around 1.3 million people, mostly Rohingya refugees.

The team of 11 doctors and nurses with experience in emergency medical care (an anesthesiologist, a gynecologist, a dentist and general practitioners) also delivered medicine and medical equipment to the camp that was hit by monsoon rains, according to the managing director of the Hungarian Reformed Church Aid (HRCA), Márton Juhász. The team plans to return to the camp on two additional missions in the autumn and the winter to deliver water purifying equipment and food aid to children.

The HRCA medical team was the third fastest team of volunteer doctors in responding to the emergency call. Since 2008, they have been involved in many international medical missions around the world. In 2013, two days after devastation of Typhoon Haiyan in the Philippines, the team was already on the spot.

In Bangladesh, the HRCA team was working under the coordination of the Red Crescent and the Finnish Red Cross in the local hospital tent.

Despite the fact that many international organizations are also working in the camp, the level of medical care provided is still inadequate. Hygiene is poor, and due to the most recent monsoon, epidemics have risen, requiring intensive medical attention.

As Dr. Ferenc Sári, head of the HRCA Medical Team said in a newspaper interview, “for a long time, we have been thinking about how we can help in this location, and we think that the most useful way of helping is to offer our experience and support on the spot. It is hard to just stand on the sidelines while a large number of people can only get minimal medical care…”

Co-chaired by László Váradi, Under Secretary of State of the Hungarian Ministry of Foreign Affairs and Trade and

by Ambassador Francisco del Río, General Director for Europe of the Mexican Secretariat of Foreign Affairs, the 9th Meeting of the

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BUSINESS INCUBATION CENTER OPENS IN BUDAPEST

POLITICAL CONSULTATION MECHANISM MEXICOHUNGARY

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The European Space Agency (ESA), in cooperation with the Hungarian Academy of Sciences (MTA), opened a business incubation center, ESA BIC Hungary, in Budapest this July. The center, hosted by the Hungarian Academy of Sciences’ Wigner Research center for Physics, is to fund startups using space technology solutions in products and services developed for everyday life. With the establishment ESA BIC Hungary, ESA's Technology Transfer Program Office coordinates twelve ESA Business Incubation Centers (BICs) in ten countries.

The new center helps to transfer technology from space to non-space applications and will support 25 Hungarian start-ups over a five-year period to develop products for terrestrial use.

The objective of this activity is to execute the overall implementation and management of ESA BIC activities in Hungary. This includes supporting the promotion and positioning of the incubation activities; managing activities related to the scouting and selection of start-ups; supporting start-ups during the incubation phase and preparatory phase; setting up a co-investment scheme with financial partners; administering the cash incentives from ESA to start-ups; as well as managing, coordinating and reporting on program activities of the ESA BIC Hungary.

HUNGARY’S E-TAIL SECTOR EXPANDS TENFOLD IN 10 YEARS The net volume of online retail trade (‘e-tail’) in Hungary exceeded the HUF 500 billion milestone in 2017, totaling HUF 545 billion (about EUR 1.74 billion) for the entire year. According to the latest report by the eNET Internet Research and Consulting Ltd, the e-tail sector boasted more than tenfold growth over ten years, rocketing from HUF 46 billion to 545 billion (from some EUR 0.15 billion to about EUR 1.74 billion at current prices). The latest figures are based on webshops’ annual reports for 2017.

In what is now a tradition, eNET announced these latest e-tail data at the 15th Hungarian Ecommerce Conference. The online retail market expanded by a significant 27% in 2017 compared to 2016. The sector’s share within overall retail trade increased further, to 6.2%; this ratio is more than 50% higher than three years earlier. When it comes to online shopping, information and entertainment electronics, general and sports clothing, as well as toys and presents rule the roost; for years, these product categories have generated the highest online turnover figures. The fifth largest product category is now furniture, home textile and lighting, ousting household machines and white goods from the top five.

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­company briefs

WORLD’S BIGGEST BICYCLE PRODUCER EXPANDS TO HUNGARY

BOSCH EXPANDS ITS SECOND LARGEST EUROPEAN DEVELOPMENT CENTER The German multinational engineering and electronics company, Bosch is expanding its Budapest Engineering Center with a EUR 120 million investment. In the new building complex housing creative spaces, innovation zones, and relaxation areas, Hungarian engineers will develop Bosch's self-driving systems. The Budapest center will also have a considerable role in the German company's electromobility-related R&D activities. The first phase of the investment is set to be finished by 2021.

The Budapest Engineering Center, active since 2005, has become more and more significant as the location of Bosch's worldwide development work, and with its more than 24 departments and more than 2400 employees, it has become the second biggest European R&D site after Bosch's German site. It plays an important part in

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Following this announcement in Budapest, the foundation stone of the new production plant will be laid in Gyöngyös.

Giant reinforces the tradition of nine decades of bicycle production in Hungary since Csepel, Neuzer, Gepida and Hunland are all important players on the European market.

FOUNDATION STONE LAID FOR NEW KRONES PLANT LAID IN DEBRECEN The foundation stone of the newest production plant, the first in Europe outside of Germany, of Krones AG manufacturing beverage automats and bottling systems in Debrecen, E Hungary, was laid. As a result of the more than EUR 49 million investment, announced in October last year, 500 jobs will be established over the upcoming years and production is planned to be launched in less than a year, as early as in the in second half of 2019. The German Krones AG, established in 1951, designs, develops and manufactures

machines and complete systems for the fields of filling and packaging technology. Their equipment processes millions of bottles, boxes and PET containers on a daily basis, primarily in breweries, beverage factories as well as the pharmaceutical and cosmetic industries. Krones AG holds more than 5,000 patents, has 90 subsidiaries and sites and employs over 15,000 people worldwide.

As the latest expansion of European production capacity, the company has decided on a Hungarian location. Good logistic connections, developed infrastructure, professionals with

excellent qualifications, as well as the training opportunities provided by the university and dual technical education all favored Debrecen. The plant in Debrecen will be equipped with state-of-the-art technology and highly skilled laborers and engineers will be employed in production and assembly in Hungary, the same as in Germany. Krones considers the Debrecen plant its second European pillar, both concerning the production of machine components and the assembly of equipment parts. Further plans also include the relocation of certain engineering planning processes to Hungary.

developing autonomous and electric mobility solutions and is one of the most significant automobile electronics research, development, and test centers of the Bosch group. The dynamic evolution of the center, that works on projects including ABS, ESP, airbag, engine control, automatized parking systems, and next-generation development projects justified purchasing the new lot next to the current Bosch campus.

The new Bosch campus will be built on a total of 90,000 square meters in two phases and will be able to host 1800 employees. In the first phase, the main building that will house creative spaces, innovation zones, relaxation areas, a conference room, and an employee cafeteria. Laboratories will also be constructed in the first phase, including a special, cutting-edge chamber that fits an entire car, allowing for unique measurement capacities. In addition, a 10,000-square-meter test track for the ultrasound, radar, and camera-based testing of driving support systems is a priority element of the investment. The new, green-roof campus and the present campus building that opened five years ago will be connected by a footbridge.

COLLIERS INTERNATIONAL HUNGARY, HIPA, ZSOLT CZEGLÉDI/MTI, SZILÁRD KOSZTICSÁK/MTI

The Hungarian subsidiary of the Canada-based global commercial real estate services organization Colliers International has sold the former Remy Automotive industrial site in Mezőkövesd, NE Hungary, to Kiss és Társa Ltd, a local entrepreneurial concern, in the iron/metal business. The site has approximately 16,000 square-meters of buildings on a 13.6 hectare plot and will be used for iron/metal production and warehousing purposes. Colliers International represented the seller, BorgWarner, a widely known major automotive supplier, during the transaction. According to Tamás Beck, Director of Industrial Agency at Colliers International Hungary, this sale is another example of the trend where local companies more and more develop their facilities, expand and move to a bigger facility with more modern production or warehousing premises.

Notably increased construction costs and the significantly extended construction period (approximately 18 months) makes existing sites much more in demand both in Budapest and in the countryside, even if they need to be customized after purchase. Colliers’ industrial division was established in 1994. The team is comprised of four advisors and two assistants, representing the largest industrial division in Hungary currently. Since its establishment, the division has sold more than 4,500,000 square meters of land, and sold or leased more than 1,200,000 square meters of warehouses and industrial properties. The properties offered for sale and lease by the industrial real estate division include development land plots, industrial sites, as well as existing or newly-built warehouse or manufacturing facilities.

producing 500,000 bicycles annually. The new modern Hungarian plant will serve the needs of the dynamically growing European market, including the production of the electric bicycles. The huge corporation considers Hungary a long-term partner and thus, further suppliers of Giant are expected to come to try to support the production.

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COLLIERS SELLS FORMER REMY AUTOMOTIVE INDUSTRIAL SITE IN MEZŐKÖVESD

Taiwan-based Giant Group will soon establish its second European manufacturing and logistics unit in Gyöngyös, east of Budapest. Worth almost EUR 48 million, the investment, which is to be realized in three phases, will occupy 228,000 square meters of space.

Due to huge European demand, production is expected to start in the second half of 2019 with 300,000 bicycles but their target is to achieve one million bicycles annually, creating 591 new jobs. The Hungarian plant will focus on core European bicycle and E-bike models, the Hungarian Investment Promotion Agency (HIPA) reports.

With almost 50 years of history, Giant is now the biggest bicycle producer of the world, producing multifunctional bicycles, road bicycles, mountain bikes and electric bicycles as well as bicycles for children and bicycle accessories (clothing, parts, etc.). The corporation has 12,000 retail partners worldwide.

From among its nine production units, the first and so far single European plant is based in the Netherlands,

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DRIVETRAIN OF FIRST PURELY ELECTRIC AUDIS PRODUCED IN GYŐR

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CSABA KRIZSÁN/MTI, DEPOSITPHOTOS.COM, QATAR AIRWAYS, ACCORHOTELS

The production of Audi electric motors has officially started in Hungary. The Audi plant in Győr, the largest engine manufacturing plant in the world, is now heading for a leading position in the field of electric drive systems, too. The electric engines made here are produced for the Audi E-tron SUV, to be launched shortly, the first purely electric model of the German premium car manufacturer. The current 400 e-motor manufacturing capacity has created 100 new jobs, which are expected to be increased to 130 by the end of the year.

According to a report by the Hungarian Investment Promotion Agency (HIPA), Audi Hungaria Co. Ltd., in Győr, with a manufacturing capacity of approximately two million motors, is currently the world's largest motor production plant and, as a member of the Audi Group, the central motor supplier of the Audi and Volkswagen Concern. Audi A3 Limousine, A3 Cabriolet, Q3, Audi TT Coupé and Audi TT Roadster are manufactured in Győr, and from next year, the brand new Q4. Audi Hungaria has been supplying several aluminum body parts to brands of the Volkswagen concern since 2006. Audi Hungaria has long been one of the largest companies in Hungary in terms of revenue and also one of the largest exporters in the country. Currently, it has 12,000 employees in Győr, indirectly providing employment for more than double that number, about 30,000 workers through suppliers.

The electric drive systems are being made based on a new modular manufacturing concept in the 8,500 square-meter production hall exclusively for electric motors. The number of employees working in this new field is currently approximately 100. The first electric car drives of Audi Hungaria are produced for Audi E-tron, the first purely electric model of Audi, to be launched shortly. The employees of Audi Hungaria manufacture two different drive types for Audi E-tron because, in line with the traditions of the Quattro, the front and rear axles are both driven.

ACCORHOTELS SECURES NEW EUR 1.2-BILLION CREDIT FACILITY

DIGI BECOMES THE LARGEST TELEVISION PROGRAM DISTRIBUTOR IN HUNGARY Due to the acquisition of Invitel, Digi Telecommunication and Service Provider Ltd. has become Hungary’s largest domestic distributor of television programs. It also dominates the cable and satellite markets.

According to a report published in July by the National Media and Infocommunications Authority (NMHH), in the slightly more than four million households in Hungary, there are more than 3.5 million television subscription services. In the majority of households without subscription, television channels are viewed with roof or room antennas receiving digital terrestrial broadcasts (MinDig TV). 78.5% of the subscribers use digital services with people in the remaining households watching TV via an analogue network.

Within digital subscriptions, the number of subscribers to cable TV or IPTV increased from 1.713 million to 1.723 million. Satellite services received individually with parabolic antenna are subscribed to by 815,000 households, while the MinDig TV Extra service (subscription to channels forwarded scrambled on the digital terrestrial network) has 99.5 thousand subscribers.

According to data supplied by the service providers taking part in the survey, the share of digital cable or IPTV subscribers increased to 51.3%. The proportion of direct satellite and digital terrestrial subscriptions fell to 27.2%, while the share of subscribers to analogue cable TV decreased to 21.5%.

Taking into account the entire estimated market and all technologies, the latest available figures name Digi Group the market leader with a 30.4% share of the market, followed by Magyar Telekom with 27% and UPC with 26%.

As far as fixed line services are concerned, Digi Group's market share is 30.1%. Telekom is in the second place with 26.1%, followed by UPC by 25.4%.

In the case of subscribed broadcasts received from satellite, the largest service provider is the DIGI group with 31.6%, Telekom ranks second with 29.6% and UPC in the third place with 27.9%. MinDig TV Extra's share is 10.7%.

AccorHotels has signed an agreement with a consortium of 15 banks for a new EUR 1.2-billion (USD 1.4 billion) revolving credit facility. It replaces an undrawn EUR 1.8-billion (USD 2.1 billion) facility signed in June 2014, which has been reduced to EUR 1.2 billion (USD 1.4 billion) following the sale of 55% of its AccorInvest portfolio in February.

As reported by the Hotel News Network, the new credit facility’s margin will be notably dependent on the Group’s performance in terms of Environment, Social and Governance (ESG). The new facility has a five-year tenor with two one-year extension options to be exercised in 2019 and 2020. This facility will reinforce AccorHotels liquidity and increase the average maturity of its financial resources.

AccorHotels’ current sustainability performance has been assessed by Sustainalytics, one of the leading providers of ESG research and ratings to investors globally. The resulting score will be used as the benchmark against which performance improvements will be assessed.

This facility falls within the scope of AccorHotels’ ‘Planet 21 – Acting here!’ program, launched in 2016, which aims to achieve the best possible ethical, social and environmental performance based on six strategic priorities: work with its employees, involve its customers, offer guests healthy and sustainable food, innovate with its partners, favor carbon neutral buildings and work with local communities.

The news network quotes Jean-Jacques Morin, Chief Financial Officer of AccorHotels, as saying “I am pleased that we, AccorHotels, are the first global hospitality leader to link the interest rate structure of our new RCF to our sustainability performance. Our Group is fully committed to ESG issues, and we take pride in being a member of most key sustainability indices.”

QATAR AIRWAYS AWARDED ‘WORLD’S BEST BUSINESS CLASS’ Qatar Airways has been awarded ‘World’s Best Business Class’ for the third consecutive year by the 2018 Skytrax World Airline Awards. A statement by the airline points out that it is thrilled to have won four prestigious awards at this year’s Awards. This is the sixth time and third consecutive year that the airline has won the ‘World’s Best Business Class’ recognition based on votes by travelers from around the world. In addition, Qatar Airways was also named ‘Best Airline In The Middle East’, for the fifth consecutive year, named ‘Best First Class Airline Lounge’ for the second consecutive year and ‘Best Business Class Seat’, in recognition of its groundbreaking Business Class experience, Qsuite. According to Qatar Airways Group Chief Executive, Akbar Al Baker, “these prestigious awards show how far Qatar Airways has come in such a short time. In just over 20 years, we have risen from a small regional carrier to become a global airline, committed to innovation and to delivering the highest standards to our passengers. w w w . d t e u r o p e . c o m

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Carey CHASE

CEO AND EXECUTIVE CHAIRMAN OF THE FORMULA ONE GROUP ON SPORTS AND MEDIA

Chase Carey was named Executive Chairman of Formula One in September 2016, and Chief Executive Officer of the world's most prestigious motor racing competition in January 2017. He is responsible for the strategy and operations of Formula One. From 2009 to 2015, he served as President and Chief Operating Officer of 21st Century Fox, and from 2015 to 2016 as Executive Vice Chairman. Chase Carey oversaw the world’s premiere portfolio of entertainment, news and sports franchises as well as worldwide broadcast, pay television and satellite assets. He continues to serve as a non-executive Vice Chairman of 21st Century Fox, and was particularly instrumental in building the company’s worldwide television business. He also continues to serve as Vice Chairman of 21st Century Fox. Previously, from 2003 to 2008, Chase Carey was President and Chief Executive Officer of DirecTV, Inc. where he led the operations and strategic direction of the DirecTV, Inc. companies, as well as serving on The DirecTV, Group Board of Directors. He is a graduate of Colgate University and Harvard Business School, and a Trustee Emeritus at Colgate University.

photo by SUTTON/SUTTON

IMAGES/MOTORSPORT IMAGES

WRITTEN BY SÁNDOR LACZKÓ

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It was after almost three decades that Chase Carey changed careers from the world of media to car racing. When asked whether he had any connection with motorsports before, he tells Diplomacy&Trade that “I am a sports fan and as Formula One is one of the world’s biggest and most followed sports, I have always been aware of it, though, I would admit, only in a superficial way. Nascar is very big in the U.S., so, I have been more familiar with it.”

managing the Formula One Group on behalf of Liberty Media. “As I said earlier, I am a sports fan and that makes working in Formula One more attractive. However, this was a decision entirely based on business. Here was a global sport that was clearly in need of a structural overhaul – there were no marketing, research, business strategy or digital and communications functions, for example – and, therefore, we could see the need to develop this great sport along 21st century lines in order to develop a deeper and broader revenue stream for all stakeholders, the teams in the first place,” he adds.

A team player

Going for best value

One sport that he has always had ties to is rugby, which is not surprising as he was born in Ireland. He maintained his interest in rugby even at Colgate and Harvard. He was never tempted to play American football, as one would expect from a student in America. “Rugby is a sport where you have to rely on your fellow players to succeed. You certainly cannot survive such a physical game if you don’t accept the fact that win or lose, you do it as a team. While at university rugby was a great way to play a fun sport and make friends and it was also a great learning ground for making tough decisions quickly and under pressure,” he points out.

When working at DirecTV, Chase Carey had plans to add one million new subscribers a year, and he met that goal before he left the company six years later.

Regarding targets at Formula One, he highlights that “we want Formula One to be a commercially viable and sustainable sports business. We need to invest as it had been under-invested in for a number of years. This is what we are doing now.

We are clear that we want fans to be at the center of the sport, and we are also clear that we need to give them the best value: this means great racing and also a business model that guarantees the sport’s longevity and financial prosperity.

Making F1 more attractive

Chase Carey is now a revered and internationally known businessman.

However, he says, this is not what he had in mind when was a kid. “I don’t

Chase Carey is characterized as an overall sports fan. But that alone is not a sufficient qualification for the job of

Easy-going attitude

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think any kid sets out to be well-known businessman, if that is what I am! Luckily, I simply enjoyed playing sport, and doing all the things children do when they grow up in a happy and stable environment.”

The CEO and Executive Chairman is often described as an ‘unassuming’ person. On how much this easy-going attitude has helped him in his career, he highlights that “I certainly don’t plan to be unassuming, or even easy-going.

That is who I am, if there is a need to characterize me. Careers are forged by hard work, clear-thinking and defined targets.

Values in sports and business Having vast experience in both business and sports, Chase Carey explains which values he considers important in these areas. “Team-work is important, knowledge of one’s area of expertise is also vital. So is the ability to work hard, stay focused, learn to roll with the punches as you cannot always win, and keep learning.”

Four years ago, Chase Carey gave a speech in London entitled ‘Power, Politics and the Media’, which raises the question as to how he thinks the relationship between these forces will be likely to change in the future. “That is a big question, and the answer will keep changing as long these three elements are influenced by so many variables and ever-changing factors; for example, changes in the geo-political landscape and technological advances. Frankly, I have enough on my plate in Formula One at the moment to occupy my mind!”

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analysis

‘STONEWALL’ TRUMP

BY TAMÁS MAGYARICS

There was Hadrian’s Wall in Britain; then, the Great Wall in China; most recently the Berlin Wall, and right now there are plans for Trump’s Wall. It is a big question whether Donald Trump’s intended wall (and fence) would qualify in the future history books as one of the notable such constructions in human history; it looks, at least now, that the goals are not exactly as ambitious as the previous ones.

Balance sheet

The most frequently voiced argument by the Trump administration for the justification to build a “great, beautiful wall” on the U.S.-Mexican border is one for law enforcement.

Illegal immigration is illegal – runs the undisputed and self-explaining explanation. So far so good, but there are other considerations that are worth being taken into account.

A leaky border helps both the U.S. and some Central American economies. There are estimates that some 20 or even 25% of the labor force would disappear in sectors such as construction or catering or agriculture in the U.S. in case of a complete exclusion of illegal immigrants. True that state and local authorities may face additional financial burden as they are supposed to pay for, among others, the schooling of the children of the illegal immigrants.

As for some of the Central American countries, especially Honduras, Guatemala, and El Salvador – the

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remittances of the emigrants from these states to the U.S. greatly help the economic conditions and, by extension, contribute to the political stability over there, as well. The same holds true as far as Mexico is concerned to some degree. These factors should be considered on the balance sheet of the advantages and disadvantages of illegal immigration.

Push and pull factors This point takes us to the so-called push factors of illegal immigration from Central America to the U.S. In short, war and poverty seem to be the major causes which force a large number of people each year to try to get into the U.S., at whatever cost and means. It would be exceeding the limits of this essay to discuss the root causes of these problems, so – in short – let it be said that on one hand, the local governments’ incompetence, corruption, and inability to meet the economic, social, and politician problems even halfway have created conditions which are truly atrocious in some cases.

However, on the other one, the U.S. also has its responsibility, historically speaking, in the present dire situation in these countries with its meddling in domestic affairs, supporting all sorts of shady military outfits in the name of fighting against leftist forces (whose ideology tends to be closer to Groucho Marx’s than Karl Marx’s).

So, on paper, the solution to illegal immigration into the U.S. would be easy: to improve living conditions in the countries from which the bulk of the illegal immigrants come.

The other side of the coin regarding

immigration is the so-called pull factors. Stating the obvious, the economic disparities between the U.S. and its southern neighbors have long been substantial. Lax law enforcement is another issue; for instance, the sanctuary cities under liberal/progressive leadership are magnets for illegal immigrants because they can count on the leniency of local authorities, even if they commit minor crimes. The ever increasing (minimum) wages also induce employers in certain sectors to risk employing illegal workers, in order to remain competitive. The efforts to maintain the image of the U.S. as a country of immigrants is also a factor in the rather lukewarm response to illegal immigration (primarily under Democratic presidents). The liberals/Democrats tend to see (illegal) immigration as a human rights issue first and foremost, while the conservatives/Republicans tend to interpret the question in the framework of law enforcement and national security. There have been attempts at bipartisan solutions in the past few years, but those legislators who are willing ”to cross the aisle” are a dying breed as both major parties are being increasingly taken over by the radicals on the right and the left whose vocabulary does not really incorporate the word ’compromise.’

Election promise

Each one of the walls in history has been porous, and the current combination of walls and fences along the U.S. Mexican border is no exception. The intended extension of them (the plans call for the A U G U S T

construction of some 2,000 milelong wall) will likely be porous too.

This fact is most likely known to the President and his administration, as well. One suspects that the construction of a stretch of wall/ fence serves an important political purpose in the first place: Donald Trump is throwing ’red meat’ to the radicals of his party, and even to those Democrats and independents who oppose illegal immigration for some reason or another. President Trump boasts of delivering on his election promises; no matter whether someone agrees with them or not, credit should be given to where it is deserved: he has made good on a number of his promises from pulling out of the Iran-deal through the repeal of Obamacare to imposing tariffs on goods coming from China and other countries, which have a trade surplus with the U.S. Building a wall on the U.S. Mexican border is another election promise, which is likely to be implemented before the midterm election in November 2018.

Nevertheless, the concomitant part of the promise, that is, that Mexico will be forced to pay for the wall seems to be a tough sell even for such an international ’bully’ as President Trump. Therefore, the details of the construction, especially its financing, should be negotiated with Congress, where the Democrats have boxed themselves into a sort of corner by trying to link the question with, for instance, the question of the Obama-era Deferred Action for Childhood Arrivals (affecting some 2 0 1 8

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700,000 young people) or recently the separation of children from their illegal immigrant parents. The more radical Democrats would even like to abolish and replace the Immigration and Customs Enforcement (ICE) unit within the Department of Homeland Security; an issue which has split even the Democratic Party.

It seems, at the moment, that the issue of the wall favors overall the President and the Republicans; the Democrats cannot really find a unified and plausible answer to the question. If illegal immigration and the problems related to it get on top of the agenda in the fall of 2018, then, the Republicans may as well retain their majority in both houses of Congress.

A longer term impact may be a boost for Donald Trump’s reelection campaign in 2020. Very few people took Donald J. Trump seriously when he threw his hat into the presidential contest in 2015; likewise, not too many people believed (and believe) that he could survive his first term as president; and perhaps the majority of the people discount a second Trump-presidency. But his supporters can claim that “There is Trump standing like a stone wall.”

General Thomas Jackson did not rely on a real stone wall to earn his nickname in the first Battle of Bull Run; Donald J. Trump, on the other hand, might be helped to overcome his opponents with, among others, a genuine wall.

Tamás Magyarics is a foreign policy analyst

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photo by DEPOSITPHOTOS.COM

THE ADVANTAGES AND DISADVANTAGES OF ILLEGAL IMMIGRATION

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EXEMPLARY CONTRIBUTIONS INTERVIEW WITH PETER BURKHARD, SWISS AMBASSADOR TO HUNGARY

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Switzerland’s admission of Hungarian refugees in 1956 is an illustrative example of the strong ties and contributes to the mutual cultural understanding of the two countries until today. The humanitarian action of former Swiss Vice-Consul Carl Lutz during the Holocaust is another example of an important historical milestone in our bilateral relations.”

political contacts. Furthermore, I am obviously also keen to continue the existing programs in the cultural field.”

Common interests and friendship Given Switzerland’s very close link to the European Union, the Ambassador believes “it is obvious that Hungary is also an important partner for us. Not only are the two countries commonly represented in various committees, but they also share common interests and a historically strong friendship.

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Exemplary integration

DÁVID HARANGOZÓ

Ambassador Burkhard presented his credentials in Hungary in October 2016.

As he points out to Diplomacy&Trade, “it goes without saying that, for me, an important priority has been the continued enhancement of bilateral economic relations as well as the support of Swiss companies domiciled in Hungary. I am pleased to observe that economic

ties between Hungary and Switzerland continue to flourish and I am hopeful that our engagement contributes to the further deepening of bilateral exchange. By way of example, I would like to highlight the success of the 4th Swiss Business Day, which was organized by Swisscham Hungary with the support of the Swiss Embassy in Budapest and the Hungarian Investment Promotion Agency HIPA on November 22, 2017 and proved to be a fruitful networking platform serving the strengthening of both business and

The events of 1956 marked deeply the relationship between Switzerland and Hungary: after the failure

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BY SÁNDOR LACZKÓ

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swiss focus also take part. This offers them the opportunity to exchange their views and experiences in the field with other countries. It is also important to note that Swiss companies were involved, from the very beginning, when Hungary introduced its dual vocational training system.”

Civilian examples

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SWISS-IMAGE.CH/RICARDO PERRET, SWISS-IMAGE.CH/DOMINIK BAUR, SWISS-IMAGE.CH/ANDREAS GERTH

Positive economic tendencies

of the revolt against Stalinist-style dictatorship in Hungary, about 12,000 Hungarians found asylum in Switzerland. Ambassador Burkhard highlights that in Switzerland, the Hungarian refugees of 1956 proved to be an excellent example of good integration. “Thanks to their diligence and willingness to make Swiss values part of their own, they were, on the one hand, particularly well accepted within Swiss society. On the other hand, they also positively influenced the cultural openness of Swiss citizens. Certainly, both of these features are the basis not only for successful integration, but also for a positive and long-term mutual understanding.”

Moreover, he adds, the children of this generation are nowadays an integral part of Swiss society and regard themselves as genuine Swiss citizens while not denying their family roots. “The Deputy Head of Mission of our Embassy, Mr. István Kocsis, is a perfect illustration of this, having now the opportunity, as a diplomat, to explore in depth the roots of his parents. Finally, let us not forget the fact that after the fall of communism in 1989, FACTS COMPARED AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world w w w . d t e u r o p e . c o m

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many Hungarians found their way back to their native country after having lived in Switzerland for decades. Nowadays, they also contribute to the understanding of the two peoples by spreading Swiss culture here in Hungary.”

Genuine support The Swiss Contribution Program, Switzerland's contribution to the enlarged EU, has helped to bring about several important projects in Hungary. The Ambassador points out that “the Swiss enlargement contribution was a very successful program which generated genuine support to several disadvantaged regions in Hungary. In particular, its resources were used in flood protection, the access to drinking water, the improvement of the health care system or the appeal of touristic regions. Obviously, the success of such projects also generates positive impact on bilateral relations, as they enable the establishment of trustful contacts to the partners of the respective authorities. After all, bilateral relations are only as strong as the contacts on which they rely.”

HUNGARY

SWITZERLAND

93,028 sq km 111 9,850,845 (July 2017 est.)

92 -0.25% (2017 est.)

214 9 births/1,000 population 205 76.1 years 91 1.3 migrant(s)/1,000 population 54 $28,900 (2017 est.)

69 4.4% (2017 est.)

59 11,779,908 78 41 (2013) 104

41,277 sq km 136 8,236,303 (July 2017 est.)

98 0.69% (2017 est.)

144 10.5 births/1,000 population (2017 est.)

187 82.6 years 10 4.7 migrant(s)/1,000 population (2017 est.)

26 USD 61,400 (2017 est.)

17 3% (2017 est.)

35 11,242,100 81 63 (2013) 78

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The bilateral trade between Switzerland and Hungary amounts, on both sides, to around EUR one billion, although the Hungarian trade balance has recorded a slight surplus in recent years. This is also due to intra-industrial trade, the fact that Switzerland belongs to the biggest investing countries in Hungary. In its statistics, the Hungarian National Bank ranks Switzerland the No. 4 investor country in Hungary. The Ambassador notes that in general, the tendency is clearly positive. Nonetheless, there are threats of possible slowdowns on the international scale, for example, in view of the emerging trade conflicts with the USA. International stabilization of the situation in this regard would certainly have positive effects on the bilateral trade between Hungary and Switzerland, as well.

“Switzerland firmly believes that a strong civil society is essential for every democracy. The Swiss system is literally based on its civil society where each Swiss citizen feels personally responsible for his environment. Accordingly, the numerous Swiss citizens who live in Hungary also organize themselves in associations and honorary positions.

Vice versa, fellow citizens with Hungarian roots are also actively involved in Swiss associations.

In this sense, civil society undoubtedly sets the basis for stable and positive bilateral relations,” the Ambassador highlights.

Swiss business presence Ambassador Burkhard’s perception is that Swiss investor firms are generally satisfied with their business location in Hungary. “According to the Hungarian Central Statistical Office (KSH) there are approximately a thousand Swiss companies operating in Hungary, employing around 30,000 people. Many investors would like to expand their presence, however, they face substantial obstacles due to the strained situation in the labor market.

Domestic consumption in Hungary is steadily increasing, which induces even more Swiss companies to open branches in Hungary, notably in the premium segment. Similarly, the growth of the Hungarian automobile industry attracts Swiss automotive suppliers to open or expand their business in Hungary.”

Training, research and innovation An important part of bilateral relations is the cooperation in the field of training, research and innovation. As the Ambassador points out, Switzerland has a reputation for being a global leader in the fields of vocational training, research and innovation. “This pioneering role is also reflected by the Swiss engagement in Hungary.

There are numerous Swiss firms, notably in the pharmaceutical industry, which every year invest significant amounts in research and innovation in Hungary. At the same time, new products from Hungarian subsidiaries increasingly emerge also in the engineering industry.”

He stresses that vocational education is a truly important matter for Switzerland and consequently, “we would like to contribute more in order to make the Hungarian educational system into one of the most effective and most modern systems in the region. Switzerland regularly organizes vocational training conferences in which Hungarian authorities

Cultural relations He stresses that, as a multilingual country, Switzerland is naturally motivated to organize cultural events in Hungary. “Firstly, there is a tight cooperation with German speaking neighboring countries, as e.g. in the course of the image campaign “Deutsch. Karriere. Erfolg.” (that is, ‘German. Career. Success.’), which promotes German language here in Hungary. Together with Germany and Austria, we also organize every year, at the end of September, a film festival called Sehenswert, where we show the very best new films from the German-language world.

Secondly, we maintain close ties with our Frenchspeaking partners, a good example of this is the annual Festival de la Francophonie. Finally, we have regular exchanges on linguistic and cultural topics with the Italian Embassy and cultural institute, as well. Beyond that, there are obviously also events, which are not directly related to language, but to bilateral cultural relations in general – e.g. Swiss musicians or artists who present their works in Hungary. Similarly, Hungarian culture is always appreciated in Switzerland, as well – all the more so, as cultural exchanges of Hungarian and Swiss artists have a long tradition. The world-famous composer Sándor Veress or the pianist Géza Anda, for example, who both migrated to Switzerland in the middle of the 20th century, are perfect examples of the long tradition of cultural exchange between the two countries,” Ambassador Peter Burkhard concludes.

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swiss focus day-to-day contacts even easier. “The relationship with the Embassy works well in both directions and we inform each other if we can help in any issues that arise – in business and economic matters that the Chamber deals with, I can always contact Robert Kattein, for instance, who is responsible for this area at the Embassy. Our relationship is also very good with the Hungarian Embassy in Bern.”

As István Béres points out, “we feel that although, very slowly, the entrepreneurial spirit of Hungarian small and medium-size enterprises is getting higher and higher towards Switzerland. It means that we receive more and more requests for contact information about Switzerland. In such cases, the Hungarian Embassy in Bern is a natural ally, a good partner.

Regarding the Swiss Embassy in Budapest, they pay great attention to the activities of companies of Swiss interest in Hungary and they can make good use of the network of contacts that we’ve built up with the Swiss business community in Hungary. We organize events together with the Embassy and maintain a relationship that is very much appreciated by both sides. It is an absolute ‘win-win’ situation because it means a lot for us – and the participants, as well – if the Swiss Ambassador is present at an event. What is a plus for the Embassy is that we maintain lively contacts with the Swiss companies in Hungary.”

Series of events and topics

AN APPRECIATED CHAMBER

The Swiss Business Day fits into the line of thematic forums and conferences organized by Swisscham Hungary. The organization’s Director, Júlia Lipovecz says one of the umbrella topics is digital transformation under which several issues can fit. “It is basically a series of events organized jointly with other chambers – the program for this fall is being compiled already.”

As István Béres points out, “we have noticed that the theme of digitalization attracts a lot of people.

A number of company managers have volunteered to speak on how digitalization is manifested in their respective fields of business. Such events, also organized together with other chambers, attracted 150-200 people on each occasion and this

is a very convincing number.”

HR is another hit topic. The SwissHungarian Chamber of Commerce has recently held an HR Breakfast that focused on the measurement of personality. Psychologist Olivér Nagybányai Nagy, the lecturer of the event, presented a personality test that shows, through a personality profile, to a given organization, how similar the selected applicants are and how they differ from what is expected in the job requirements. The event was attended by several CEOs who expressed their gratitude to Swisscham for the choice of the topic presented.

Júlia Lipovecz recalls that sustainability was a topic discussed

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SWITZERLAND IS MUCH MORE THAN JUST ‘CHOCOLATE, MOUNTAINS AND WATCHES’ at the recent Swisscham annual assembly meeting. “This includes energy efficiency that we may touch upon this fall and healthcare and prevention programs at the workplace.” The President agrees: “this is something we would like to put more emphasis on at the Chamber. We have several members, multinational companies in the field of healthcare, pharmaceuticals, who can share their experience, programs and methods in healthcare that do not cost a lot of money, the whole system does not need to be uprooted but still, they could be used to achieve quality improvement especially in the areas of prevention and diagnostics. We are A U G U S T

working hard and still looking for the partners with whom we can do this.”

He adds that Swisscham is also an interesting organization because “we are very colorful as far as the represented sectors are concerned: from food industry through machinery to pharmaceuticals and advisory firms: 2-3 members from each field make up the 100-strong membership.

Both the HR and the healthcare fields are interest companies irrespective of size and field of business.”

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Although, there are many Swiss companies here, Swiss brands are not that well-known in Hungary. According to Júlia Lipovecz, “we do our best to communicate Swiss brands. Events like the Swiss Business Day is very much about showing that Switzerland is not just ‘chocolate, mountains, watches’. What is more, we would like to show how much can be achieved in Swiss-Hungarian cooperation.”

Adding to that, István Béres says he is certain that the average Hungarian consumer is not aware of how much the Swiss economy is present in Hungary. “I am not even sure people in an average Hungarian household can associate Nestlé with Switzerland.

It is not likely either that Maggi is recognized by them as a Swiss brand or that many of the dog and cat food brands, like Purina, available on the Hungarian market are actually from Switzerland. It is also little known, yet, that the Stadler suburban trains to be used in Hungary represent a leap in quality. Many of these products, including these trains, are actually produced in Hungary and they provide the opportunity for a lot of Hungarian SMEs to be suppliers.

There are also Swiss companies that are suppliers, to the automotive industry in Hungary.”

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Not just ‘chocolate, mountains, watches’

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“Innovation and talent” – that was the motto for the latest Swiss Business Day in Budapest that took place last fall. As Dr. István Béres, the President of the Swiss-Hungarian Chamber of Commerce, the organizer of the Business Day, explains to Diplomacy&Trade, it was a very successful event for several reasons.

“First of all, it was a very good choice to put these topics in focus. Centered around the topic of ‘talent’ were the themes of recruiting and keeping labor force as well as training. As I can see the structure of the new government, innovation will have more importance as there is now a ministry dedicated to this field. So, these two topics were very much in line with the demands of our member companies.”

He also stresses that the exhibitors gladly demonstrated how seriously they take innovation, which world class products they are able to produce. “As far as the themes of the lectures were concerned, we managed to pick topics to suit the demands of exhibitors and visitors alike. We organized – in the areas of both innovation and talent management – roundtable discussions that lecturers were happy to participate in: they were very prepared, talking about things the audience was interested in, including taxation, HR and legal issues.”

Another element of success was the choice of venue, the Castle Garden Bazaar “through which we could provide a very representative environment. Also, both the Hungarian and the Swiss governments were represented at a fairly high level: the foreign minister and a deputy state secretary from the foreign ministry, respectively, appreciating what we are doing. I believe their presence was a great recognition for the Chamber as well as for the event, itself. Leica’s drone, ABB’s robot and Novartis’ eye test equipment – all represented world class technology,” he adds.

www.eisberg.hu www.salatazz.hu

Salad.

Simply plain.

swiss focus

SALADS – NOT A WHIMSY, ANYMORE EISBERG HUNGARY AIMS TO CHANGE EATING HABITS FOR THE BETTER

NOT JUST THE QUESTION OF MONEY

The problem of labor force is becoming pretty serious in Hungary, in all areas. “We hear from various industries even in the countryside that can hardly find people for the factories or have difficulties finding people for harvesting fruits, vegetables. You have to raise wages but it is also important how employees feel treated in the workplace: what the working community and the working environment are like, how conflicts are treated, etc. Once these issues are settled, people get to like the workplace and are not likely to leave.” the Managing Director says. He highlights that there is a new tendency, employer branding, that actually ‘sells’ the workplace to would-be employees by presenting a picture of the given company, “emphasizing different issues that are more interesting and more important than, say, the company’s general website. “Eisberg sponsors the “Szerethető munkahelyek - Most loveable Companies for Work” campaign by the startup Dreamjo.bs, which we find a creative way of presenting the values of the companies that helps both finding jobs and recruiting workforce. Anett Soti, CoFounder will announce the TOP100 SME and TOP25 large companies according to their Loveability Company Index, the nationwide audience jury and the highly professional and supportive jury members such as Eisberg on November 15 in Budapest,” he adds. Feedback is also an important element.

“We have been doing an employment commitment survey since 2009, conducted by AON. The latest results show that we are some 20% above the average Hungarian production companies concerning labor force engagement level. There are several factors behind this. For instance, if we send employees to further training, we never oblige them to continue to work for us, say, for another year in exchange for covering the cost of this training. We want to create a working environment that is attractive enough for that person to stay, anyway. We need to build a system where employees are free to voice their opinion without fear for reprisal, these voices are heard and treated with respect,” he explains. Interestingly enough, the HR person here at Eisberg Hungary had no HR background before joining the company but she has a good perception of people and knows very well each of the roughly 200 employees. I believe there is not as much of a difference between the demands and desires of a blue-collar and a white-collar worker as one might think – they both need a motivating job, have need for appraisal and wish to work in a positive environment,” the Managing Director says. Raising wages is many times unavoidable these days and it is a big challenge how to negotiate with your business partners and have your rising product costs accepted. “We depend on nature, and weather becomes more and more hectic: that increases pressure on raw material supply reliability. We need a lot of extra effort to maintain our well known Eisberg values and quality in a sustainable way. I am not complaining, our company is a profitable venture but there is enormous challenge to keep profitability in this environment which is needed to be able to continue investing,” he adds.

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responsibility, that is why Eisberg Hungary is a supporter of the Hungarian Dietetic Association.

Also, we have our own dietician, actually a quite famous one, wakeboard world champion Kinga Schenker-Horváth, whose expertise in healthy diet helps shape the product portfolio.” Eisberg also works with well-known Hungarian celebrities such as world champion boxer Zsolt Erdei, singer Bea Palya and Miss Earth Hungary Viktória Viczián to increase the awareness of natural, healthy food image to wider groups of people.

The Managing Director stresses that “fortunately, the notion that eating salad is just a female whimsy in Budapest is not a valid one, anymore. We have now spread to towns in the countryside, holding tasting events where our products are also available on the shelves of most supermarket chains, as Eisberg branded or private label products. The increasing lack of labor force in the catering industry also creates additional demand for the more ready-made products that can directly be used in the kitchens of restaurants, for instance. It also shows in our sales: some 6,5 % higher this year, so far, compared to this period last year.”

One of the new products is ‘Green drink’, a package of carefully selected salad mix. “You simply pour the contents of the bag into a blender, add a banana, water, orange juice or whatever you like and blend all of these together.

This has proven to be a very successful concept.

People usually associate smoothie with fruits but we have created special recipes that include Romaine lettuce, arugula, curly kale, carrot and spinach. Lines in front of the blenders on tasting occasions show that this green drink is really popular. It is a very good alternative to transfer the values of salad such as fibers, vitamins, minerals, etc. to your body in the form of a drink,” Zoltán Gazsi explains.

We can also see that supermarkets have begun a shift towards ordering more and more premium products containing baby leaves. This change in demand by customers also prompted a move by

psychologist, László Léder, who comes to Eisberg once a week to discuss problems that may arise among, or with, the workers is a recognized expert in Hungary of the father’s role in the family, organizes Fathers’ Academy events and many more.

“His activity came up in a conversation I had with the Executive Director of UNICEF Hungary, Antónia Mészáros who happened to be organizing a Father’s Day event earlier this summer with the participation of well-known Hungarian personalities who talked about their fatherhood. “We hope good examples help fathers recognize – during daily rush as well – their important role in the growing up of their children.

And there is ‘Mosolyka’ (Little Smile’), that is, Fanny Hozleiter who suffers from muscular dystrophy; she is wheelchair-bound but possesses amazing vitality and vigor. She has married recently, she is writing books, and currently a film is being shoot about her life. She very much deserves our support.”

Eisberg Hungary: they purchased a huge piece of drying equipment that is able to dry delicate leaves like those of arugula, lambs leaf and spinach, leaves that would easily be crushed by the traditional spin dryer. In this new machine, drying is ensured by hot air blown in and moisture sucked out. “Another piece of novelty targets children – and adults – by cutting spirals from carrots and beetroots. This year, our marketing campaign is built on popularizing these products.

It is not a major innovation but the market and the consumers need these small steps, and they actually make vegetables ‘cool’,” he adds.

Looking for human values As Zoltán Gazsi explains, Eisberg Hungary does not have a pre-determined corporate social responsibility policy. “We are open to the world, looking for great human values. Many people are doing very valuable work under difficult circumstances. For instance, we supported the National Institute for the Blind with a motion therapist and dietetic expert; we supply salad for the summer camp organized by the Bátor Tábor Foundation for gravely ill children and we also support them financially. The latest on the list of supported events was a Fathers’ Day event. The A U G U S T

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Where salad comes from Please, activate English subtitles!

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DÁVID HARANGOZÓ, EISBERG

Novelties

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It is quite an achievement when a company maintains continuous growth, excellent brand image, and profitability year after year throughout its operation, in a fast changing environment. Eisberg Hungary, – now part of Swiss Bell Group – has been such a firm for over a quarter of a century. Zoltán Gazsi who has been Managing Director since 2007 tells Diplomacy & Trade in the company’s 3,000-sqm salad factory in Gyál just outside Budapest that a key to continuous profitable growth and maintaining their market leader position is constant innovation with responsibility, combined with high labor force engagement.

He quotes figures by the Hungarian Dietetic Association that in Hungary, the number of obese children has tripled over the past 20 years, every third child in Europe is overweight or obese, and type 2 diabetes has also appeared among children.

“It is also becoming a burden on the health-care system. Changing eating habits in a country is not easy but I believe we should work on it step by step, say, by replacing part of the side dishes with salad and then, by increasing the proportion. If we don’t start this process, this current tendency is going to turn even worse. It is our common

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NS INNOTRA

Stand 103 2 .

2 l l a H : Indoors d O/615 n a t S : s r o Outdo

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FLIRT KISS METRO EURODUAL TAILORMADE

swiss focus

TARGETING SUPERIOR CUSTOMER EXPERIENCE

socially and has good relations with the town and its people. “We build these relationships through several channels. One of these is supporting sports activities and the work of local civic organizations through different foundations or even by direct donations. These initiatives have been well received by both the town municipality as well as the sports and civic organizations,” Mihály says. As an example, he mentions their cooperation with the Hungarian Red Cross. “Through the global Givaudan Foundation, we managed to provide support for the needy by distributing food packages to nearly 400 families. This year, we have submitted a bid to the Givaudan Foundation – a not-for-profit organization created by Givaudan in 2013 to support the communities in which it operates – to fund a new educational initiative that will target visually impaired people in Makó and the surrounding area by establishing an education room equipped with computers.”

The Makó factory is also the recipient of the Alma Mater Award from Szeged University, which is aimed at strengthening the relationship between students and local companies. This prestigious award is given to those companies in the region which show good scientific cooperation, outstanding professional collaboration, and which have a close relationship with the University. The award, given by the alumni organization is handed over each year at the opening ceremony of the Spring Job Fair where Givaudan is an active participant.

HUNGARIAN FACTORY BECOMES A ROLE MODEL IN GIVAUDAN’S GLOBAL OPERATIONS

From young brother to role model

50,000-square-meter factory has become the second biggest employer in the region of the south eastern Hungarian town of Makó. Looking back at this significant development, Mihály Karkas, Head of Operations at the Makó factory tells Diplomacy&Trade that “in the past five years, this plant has come a long way. We have achieved a level of development, which has made us the top Givaudan factory in the European, Middle-East and African region. This region includes two factories in Switzerland and Holland as well as one each in Germany, Egypt and South Africa. Playing our role in the regional production network of the Givaudan Group has put us in a top position. Our key performance indicators, such as the level of customer service, have made us among the best in the past year and a half.”

More satisfied customers, more production, more people The Makó factory looks to improve quality continuously, resulting in greater customer satisfaction and high levels of compliance with

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the neighboring countries and we now have over 20 Hungarian suppliers. Because it is important to us to develop our local supplier network, we have been experimenting with various onion varieties to see if they are suitable for industrial processing and can be grown locally in the desired quantity at a competitive price. If this experiment is successful, then, we’ll have a look at the possibility of primary processing (cleaning, chopping, drying and pulverizing) if the price is competitive.”

A socially active economic player For Givaudan, it is an important that its Makó factory plays its part not just economically but

DÁVID HARANGOZÓ, GIVAUDAN

Since opening, this state-of-the-art

internal standards. They have also recently marked over 300 days without ‘Lost Time Incidents’. The evaluation of factory performance is based on four pillars: customer service; quality; cost (including environmental cost); and health & safety. Good progress has been made in all these areas, alongside improved internal operational efficiency and productivity.

“In 2017, we increased our volume of production by between 7-8% and it looks like we are on track to do the same again this year, improving our overall competitiveness”, Mihály explains.

The increase in production has meant an increase in the labor force by about 10%. “But there are challenges in the Hungarian labor market as we need to find operators with the skills which will enable us maintain and increase our production level,” he adds.

Onion from Makó Ironically, although, the region of Makó is famous for its onion growing, Givaudan’s onion supply is not local as the company works on the global market, so, its raw material supply network is global, too. However, the factory tries to use local suppliers for its needs where possible.

According to the Head of Operations, “in the first years of operation here, we attempted to use as many suppliers as possible from Hungary and

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The Makó plant in Hungary, owned by Givaudan, the world's leading flavor and fragrance manufacturer, has recently celebrated five years of successful operation.

Mihály makes the point that for the Givaudan Makó team, the primary goal is to have ‘best in class’ operation in the factory. “I believe we are on the right path in this respect.

Colleagues from as far away as the United States and Asia come to take a look at the solutions we implement for the processes here. Within the Givaudan family, the Makó factory has turned from a young brother into a role model in many respects, and we would like to continue to strengthen this role model status in the future.”

In recognition of their achievements, in 2016 the Makó plant was awarded Silver in the Lean certification system awards aimed at continuous improvement in processes to increase efficiency and quality. “We now have the chance to become the first Givaudan factory in the region to reach the next level ‘Silver-Gold’. Our main goal is to further strengthen our position with respect to the main performance indicators which are: cost; quality; health & safety; and customer service within the Givaudan Group,” Mihály Karkas concludes.

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A coffee that always feels good

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swiss focus ROCHE’S HUNGARIAN OPERATION IN NUMBERS

• The number of employees at Roche Hungary doubled

in five years: staff will be expanded to 950 people by the end of 2018, with Hungary gaining an increasingly important position within the group of companies; • In 2017, the local subsidiary paid HUF 6.2 billion in taxes, purchased domestic products and service for HUF 4.7 billion and expended almost HUF 4.2 billion in net salaries; • The company reinvests 75% of its Hungarian revenue back into the Hungarian economy; • The company has invested HUF 2 billion in clinical studies; • The Pharmaceutical Division is present in 150 Hungarian hospitals with 34 products, used mostly for cancer, inflammatory disorders and infectious diseases.

PASSION, CREATIVITY, COLLABORATION

value in 2017 was HUF 5.3 billion (then over EUR 25 million). A compact device is also being developed for smaller hospitals, which will generate further export revenue opportunities.

Long lasting impact Since its foundation more than 120 years ago, Roche has been committed to supporting people in need through innovation and sustainable partnerships. “In our corporate social responsibility policy, we carefully choose our projects based on criteria such as commitment, collaboration and continuity to ensure that the engagement and impact will be long lasting. We have been working together for the past eight years with the Hungarian Interchurch Aid services. Our employees engage in a number of philanthropic projects. The enthusiasm and idealism we bring to the discovery of new medicines and diagnostic products carries over to our involvement in social, educational, humanitarian and cultural causes,” she points out.

ROCHE REINVESTS 75% OF ITS HUNGARIAN REVENUE BACK INTO HUNGARY

The Swiss multinational healthcare company Roche is one of the biggest innovation partners of Hungarian hospitals and reinvests almost 75% of its sales back into the local economy, along with the Diagnostics, Diabetes Care and the Shared Service Center (SSC) in Budapest. It has doubled its headcount in the last five years and has plans for further expansion.

The company has a wide range of interests and views Hungary as a premium location for partnership and investment.

Roche innovates healthcare. “We are one of the biggest innovative partners of Hungarian hospitals. The effective treatment of cancer is in our focus, with around 7,600 Hungarian patients being treated each year. Roche also contributes with other important medicines to patients and doctors in areas such as organ transplantation, rheumatoid arthritis, multiple sclerosis, hemophilia and infectious diseases. Approximately 30 million diagnostic parameters are measured by Roche instruments in Hungarian laboratories, and three out of four diabetic patients monitor their blood sugar levels using our products,” she adds.

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An eternal optimist Irma Veberic is from Slovenia. She headed the Roche subsidiary there for eight years. She stresses that “the natural beauty of my own country is beyond dispute for me, but I must also admit that Budapest’s cultural and historic treasures are almost unique in the world, and that Hungarians can also be rightly proud of their country. Everyone has been very welcoming and I am really enjoying living and working here. I like very much a quote from Winston Churchill: ‘The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty’.

I am an eternal optimist. I passionately believe in collaboration. Working together, passionately, creatively and collaboratively, we are inspiring a positive change. I am humbly grateful that I can start every day with a smile and awareness that together, we can achieve more.”

Clinical trials

Recently, Roche has made a huge step in personalized healthcare in oncology with a uniquely sensitive and specific complex service, ‘Foundation One’. The basis of that service is a test, which is designed to provide physicians with clinical information to guide treatment decisions for patients based on the genomic profile of their disease founded on the investigation of more than 300 gene mutations. Test results provide information about clinically significant alterations, potential targeted therapies and available clinical trials.

Local partners The challenges of healthcare are extremely complex everywhere in the world. Nevertheless, the General Manager says, Roche wishes to build a good cooperation with the National Institute of Pharmacy and Nutrition (OGYÉI) and the National Healthcare Fund (NEAK) in Hungary. “Our goal is to develop healthcare services, ensure the access for the best therapies and tailored solutions for every

“We have a longstanding commitment to clinical research and Hungary has a strong international reputation as a location for developing new medicines. Last year, we conducted a total of 56 pharmaceutical clinical trials in six therapeutic areas (oncology, pulmonology, neurology, ophthalmology, immunology and inflammatory diseases) involving almost a thousand patients.

All medicines were provided free of charge, thereby saving the Hungarian pharmaceutical fund HUF 5.6 billion (more than EUR 17 million) in 2017,” Irma Veberic highlights.

Roche culture The General Manager says she personally believes that the company is doing the right thing when both employees and customers are satisfied and happy. “When employees are truly empowered, they become great advocates of the company where they work. With the passionate, creative and collaborative work I mentioned, we can co-create change for a better tomorrow. That is what makes the Roche culture so special. Roche makes me feel proud. On one hand, I am proud of the real innovations we bring to patients and on the other hand, I am proud of all the enthusiasm and knowledge of our employees. I’m truly grateful to be a part of the Roche family.”

Hungarian innovation – opportunity for Roche In March 2014, a trilateral agreement was concluded between Roche, the Hungarian Investment Promotion Agency (HIPA) and the Hungarian diagnostics instrument company 77 Elektronika. This enabled the development, and international sale, of a hospital urine testing device (Cobas 6500) created by 77 Elektronika Ltd. The product was developed over many years of research and development, with Roche assisting 77 Elektronika to meet tough FDA quality standards in the United States. So far, some 1,200 units have been sold and export A U G U S T

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ROCHE, GÁBOR ANCSIN

Important medicines and instruments

Hungarian patient. I believe in partnership with the decision makers very much for achieving this goal.”

She holds that real advances are being made in the treatment of cancer with significant improvements in health outcomes being seen. However, she makes notes of a recent report, which highlighted that out of all European countries, Hungary has the greatest loss of life among people of working age due to cancer, so the impact of cancer is not just medical and social, but economic, too. Cancer is not a patient journey but a family journey. Almost all Hungarian families are impacted by cancer.

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Roche is one of the oldest global multinationals. As the General Manager at Roche Hungary, Irma Veberic explains to Diplomacy&Trade, “our subsidiary has been present in this country since 1984; we expanded our local pharmaceutical and diagnostic division operations significantly in 1997. The number of our employees at Roche Hungary in Budaörs and in our Shared Service Center in Budapest altogether will total more than 950 by the end of 2018. Five years ago, the total employee number was only 450. It is pleasing that our trend to increase local headcount continues, further enriching the global culture (currently with 24 nationalities and 27 languages spoken).

In 2006, our Shared Service Center (SSC) was established as an affiliate of the Roche Group.

From its central Budapest location, the SSC provides value added worldwide support and consultancy for more than 150 Roche affiliates in Financial, IT, Procurement and Human Resources processes. Our enthusiastic and committed employees provide high quality services to our Roche business partners and believe in our mission ‘Doing now what patients need next’.”

BUILDING TRUST - VISIBLE SWISS VALUES FROM SIKA HUNGARY We have emphasised excellent full scale services to building supplies for more than 100 years... ...and we have emphasis on: Innovation – that is present in our everyday life Sustainability – pay attention to how much waste, burden we produce

BRANDCONTROL

Social responsibility – support the communities with various projects every year

swiss focus

RICH IN HISTORY, YOUNG AT HEART

explore the city from here. At the The Dolder Grand hotel above Zurich, visitors relax in the spa area or in the Dolder bath surrounded by dense forest. The spa experience boasts a spacious pool, steam room and a sun terrace with outdoor whirlpools. The location of the 10,000-sqm paradise is especially impressive in the Dolder Bad, just a few steps away. In the middle of the forest and away from the city, guests will find a true oasis of peace. On the opposite side of the city, the Hotel Atlantis also welcomes guests with an exclusive spa experience and an outdoor lounge with exquisite grill specialties.

Those fond of the superior service of luxury hotels, but wanting an undisturbed and private stay, can book one of the wonderful apartments of Le Bijou. The apartments, all located in a prime location in the heart of the city, enchant you with their uniqueness, individual interior design and a constantly available personal concierge service.

Guests enjoy the city from a completely new perspective, without sacrificing the comfort of a luxury hotel.

The oenological heart of Tuscany rumbles in the middle of Zurich: here, the well-known winery ‘Tenuta dell'Ornellaia’, which produces some of the best Italian wines, has opened its first restaurant. The luxurious Ristorante relies on noble Italian grandeur, for which the high room was lined with Tuscan travertine and light wooden flooring was laid. Top Italian chef Giuseppe D'Errico conjures up the best dishes in Italy. Of course, the matching wines are a must.

SWITZERLAND AWAITS TOURISTS WITH SPECIAL URBAN EXPERIENCE FROM CUISINE TO ART

On the list of the World's Most Tourist-friendly Countries, compiled by Travel+Leisure, Switzerland is ranked 6th, with scores in the top 20 for all the indicators. The Alpine nation also does well in the other travel and tourism competitiveness categories, including safety and security, environmental sustainability and business environment.

POP-UP HOTELS IN SWISS CITIES

SCHAFFHAUSEN

With its four languages and cultures, Switzerland has always had a surprisingly versatile cuisine.

"Taste my Swiss City" is the name of a new offer, available since May this year, which combines the best dining and drinking experiences of a city, recommended by local connoisseurs.

The local foodies have put together a list of up to seven restaurants, bars, bistros and cafés that serve an outstanding dish. Which restaurant offers the best risotto? Which bar offers the most unusual snacks? In the form of a culinary tour, guests discover the city from a local perspective.

At each stop, a treat waits, and in the end, the visitor has tasted a whole menu and become acquainted with the city from the view of the locals.

The ‘Taste my Swiss City’ offer can be experienced in the cities of Ascona, Basel, Bellinzona, Bern, La Chaux-de-Fonds, Lausanne, Locarno, Lugano, Lucerne, Neuchâtel, Vevey and Winterthur.

A boathouse in Lucerne, the ‘Krummturm’ in Solothurn or the old customs house in Bern?

Eleven Swiss cities are offering exceptional overnight stays in pop-up hotels for a few months this summer. So, the city trip is an experience not only during the day.

Visitors can stay in exclusive and extraordinary locations that are not classic hotels and have not existed as accommodations until now. New perspectives on the city and a unique night-time experience are guaranteed. The locations:

The pop-up hotel is located aboard the excursion ship MS Konstanz on the Rhine.

BADEN

For art lovers, one thing is quite clear: with around 40 museums in just 37 sq kms, Basel is not a city that can be discovered quickly. With Switzerland's highest museum density, the four world-famous Kunstmuseum Basel, Fondation Beyeler, Museum Tinguely and Vitra Design Museum stand out in particular, not to forget the largest temporary museum: the Art Basel, which is undisputedly the most important international trade fair of the international art market.

Starting this fall, Basel will be enriched by a top-class trade fair: in addition to Art Basel and Baselworld, Grand Basel will open its doors to another public show, in the luxury segment, on September 3, 2018. The concept for the show includes top class vintage cars as well as concept cars, through which the future of the automobile is simulated. Similar to Art Basel, a jury will curate the fair. The exhibition organization Messe Schweiz was able to win over the professor for automotive design Paolo Tumminelli, who teaches in Cologne, as head of the board of trustees.

For those who want to combine the love of exclusive cars with an enthusiasm for art, there is the new Street Art Experience at the Grand Hotel Les Trois Rois! Take the Bentley of the hotel and a connoisseur to the hotspots of Basel's urban art and street art scene. If you like, you may also dare to jump into the Rhine and refresh yourself afterwards with a delicious drink at one of the many ‘buvettes’ on the banks of the river.

Incidentally, the Bentley is also colorful: as part of an art project, pupils from two classes at the private school FG Basel have transformed the guest limousine of the Grand Hotel Les Trois Rois into a graffiti work of art – in line with the slogan of the house "Rich in history, young at heart."

SOLOTHURN

The room is located in the ‘Krummturm’, a medieval defense tower on the banks of the Aare with impressive architecture and a unique view.

VEVEY

Formerly a glass-roofed ballroom, the place used to be a boutique and café for a long time. From this summer, it is a (hotel) room.

ZURICH

The room, designed by the artist Max Zuber, is located in the middle of the city.

The old city tower served as a prison until 1984; today it can be stayed in it.

BASEL

An old fisherman's cottage on the banks of the Rhine, where the Basler Rheinfischer used to work and store their materials.

BELLINZONA

The Black Tower of Castelgrande, one of the city's three medieval castles (UNESCO World Heritage Site).

BERN

The old customs house on the Nydegg Bridge in the middle of the old town.

LAUSANNE

A glass house in the middle of a beautiful garden.

LUCERNE

THE EXCLUSIVE ZURICH

Guests are picked up from Lucerne by private boat and taken to secret accommodation: an old boathouse on the shore of Lake Lucerne.

Zurich offers unique travel experiences, topclass gastronomy and luxury hotels in a class of its own. Hidden treasures inspire lovers of the exclusive.

Many Zurich luxury hotels pamper their guests with unique outdoor offers. From the Hotel Storchen, guests can comfortably board the Limmat boats directly from their own pier and

ST. GALLEN

From 1800 to 1839, the Galli tower was a prison. Then, it was demolished and rebuilt only during the construction of the Hotel Einstein.

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SWISS CITIES AS A CULINARY EXPERIENCE

SWISS-IMAGE.CH/CHRISTOF SONDEREGGER, SWISS-IMAGE.CH/ANDRE MEIER, ANDRE MEIER/SWITZERLAND TOURISM

BASEL - THE ART METROPOLIS OF SWITZERLAND

Doing now what patients need next Our role is to deliver medical solutions that significantly improve people’s lives now, even as we develop innovations for the future.

Our approach is to develop local solutions, in partnership with local stakeholders, tailored to local needs, to provide sustainable improvements in health and in healthcare.

Our aim is for every Hungarian person who needs our products to be able to access and benefit from them.

We are Roche.

HU/NONP/0718/0012

Information: Roche (Hungary) Ltd. 2040 BudaĂśrs, Edison str. 1., Tel: +36/23-446-800, Fax: +36/23-446-860, www.roche.hu

swiss focus

SIKA, THE VISIBLE POWER FROM RAILWAY TRACKS TO BATHTUBS SEALING – SWISS FIRM FOCUSES MORE ON END USERS

In recent years, SIKA AG, the Swiss chemical company of building supplies, has turned from ‘invisible power’ to ‘visible power’, placing more emphasis on business-to-customer (B-to-C) relations. As General Manager Johanna Kruchina of the local subsidiary, SIKA Hungária tells Diplomacy&Trade, SIKA products and services are becoming more accessible for the average man of the street.

“Our focus has always been participation in big projects. However, our portfolio has expanded and in the past two years, we have managed, through various acquisitions, to gain access to individual consumers which means that end users can also make use of our products in their houses or apartments.

Basically, no one knows that certain tram tracks in Budapest have been glued into place with a SIKA product. However, at home, people can see that a SIKA sanitizer silicone that is used when a bathtub is fitted.

That is how we step out of the ‘invisible’ and enter the ‘visible’ world for our customers.

It means that we are no longer engaged only in the business-to-business relations, that has characterized the company since the 1990s and in which we have become a market leader, but also in the establishment of direct ties to customers. Actually, it is a clear policy for SIKA to be more active in the B-to-C area.”

SOCIAL RESPONSIBILITY

SIKA participates in various projects every year to support the community. One example is the ‘Santa Claus factory’ where people bring clothing, foodstuff and toys to be forwarded to needy children before Christmas.

Also, last year, SIKA partnered with Habitat for Humanity, by providing products and materials for three families to have their bathrooms refurbished: tile adhesives, sealing materials, waterproofing, etc. “We are joining more and more initiatives year after year. The latest one is called ‘Castle builders’, which is supported by construction material companies that offer their products, which are forwarded to various organizations like kindergartens, schools or homes for the elderly. In the framework of this initiative, we will refurbish a bathroom in a school in Nemesvámos, north of Lake Balaton. Our headquarters has undertaken to increase corporate social activities by 5% every year. SIKA Hungária actually exceeds the goal of this undertaking,” Johanna Kruchina stresses.

Corporate social responsibility at SIKA also involves programs for the staff members. “Every year, we have a family sports day at Lake Balaton where all employees are invited along with their families,” she adds.

“SIKA is able to provide systems (be it a floor system or a roof insulation) to design engineers who are able to include in their work the desired SIKA system that is ready to be built in during construction. Such BIM (building information modeling) solutions also take us to the future because these are not done through the old traditional channels but digitally,” she says.

Everything – from railway tracks to bath tub sealing – is performed with a focus on sustainability, one of the Swiss values followed and exercised at SIKA. “Regarding the composition of our products, we are always seeking components that put less burden on the environment, to make them more environmental friendly. The actual working environment is another ‘terrain’ where we want to make our activities more sustainable. We pay attention to how much waste we produce, how much water we use.

For instance, there are products that emit a lot of dust that can easily be inhaled by the workers. In order to ease this problem, we have developed products that produce less dust,” the General Manager points out.

In case of other products, less energy is used during the manufacturing process. Another example is that of roof insulation where SIKA tries to orientate its customers towards using flexible polyolefin (FPO) instead of the traditional PVC as the latter poses much more danger to the environment since hazardous substances may be released during welding on one hand, and has a shorter life cycle on the other. She adds that “in various projects, we also strive to integrate environmentally conscious, longer life cycle systems and products. An excellent example of this is the use of Sarnafil FPO membranes for flat roofs.

In addition, we also have initiatives on the local level in the area of sustainability."

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Johanna Kruchina believes the term ‘sustainability’ also includes keeping the company financially sustainable, that is, producing a continuous development without major ups and downs. Going into B-to-C, the visible world is an important step in this direction.

“An even higher level of sustainability in our activities is offering solutions that fit green building policies. We think in terms of systems that contribute to building certifications. If a customer orders a LEED

certified roof with white tiles that can reduce the ‘heat island’ effect, it will earn the customer a LEED point. We can compile systems that meet – or even exceed – environmental requirements. By applying such a SIKA system, one can achieve a plus in caring for the environment. For instance, the customer may get a LEED certification for doing it. There are more and more companies, especially in Western Europe and the United States, that need such certification for their office buildings,” she explains.

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SIKA has regional research and development centers with continuous product developments that have always characterized the company. Johanna Kruchina says “these are not located in Hungary but it happens from time to time that they develop something at our request to suit our demand or that of our customers.

Innovation is present in our everyday life.

Our industry branch comes out with new materials one after the other: new adhesives, new sealing materials. It is a key issue for us to constantly develop something new, something better and look for new ways.”

Nowadays, among others, the construction industry is in dire need of professionals, and SIKA’s response to the call of the times is that they produce materials and technology that allow for quicker solutions at the construction site. “Take balcony insulation as an example: SIKA can provide materials with which this job can be done in two days instead of nine, thus, freeing up the time of the person doing it, allowing him to move on to do the next phase of his job,” the General Manager highlights.

Currently, SIKA Hungária is in an expansion phase. “We inaugurate our first Hungarian production facility next year, which will mean a new dimension for us. So far, we have been a distributor of our mother company but in 2019, SIKA Hungária will join the ranks of the neighboring countries where there are already production facilities, as well,” she concludes.

Sustainability

ZSOLT VENCZEL

Innovation

swiss focus

Brewed to allow people to make perfect espresso at home with a single touch of a button, the Nespresso brand has become a global success story over the past three decades. Today, it is the fastest-growing division of the world's largest food and beverage company, the Swiss Nestlé, and it is present in over 60 countries. In 1996, the company launched a new system named Nespresso Professional (also referred to as Nespresso Business Solutions), with dedicated machines and coffee varieties packaged in pods, designed for small

GREEN COFFEE

offices and the premium foodservice sector. Ever since, Nespresso Pro is constantly innovating to serve the unique needs of hotels, restaurants and offices for high volumes of consistently excellent coffee, which can be produced with ease, without a barista behind the machine. Just as in Switzerland, where Nespresso has been exclusively distributed by Lyreco Group since 1997, exclusive distribution rights of Nespresso Pro products in Hungary belong to Lyreco, too, as of 2013 and they provide coffee machines to the Corporate and HoReCa segment with a

With both Lyreco and Nespresso being at the forefront of Corporate Social Responsibility, they have already established a system of recycling of used coffee capsules and tries its best to significantly boost the process of recycling. Nespresso Pro customers are encouraged to collect their used pods in bulks, which they can get rid of the moment they receive their new capsules. “We have already seen a significant increase in sales of our recycling bags and canisters as well as an uptake in the volume of capsules recycled,” Kiss reveals. He notes that the aluminum capsules are sent to a recycling plant in Debrecen that separates the aluminum from the used coffee grounds. “The grounds go on to make compost and the aluminum is bailed and returned to the aluminum industry to make new products – sometimes, due to ad hoc partnerships with contemporary artist and designers, they transform into original artworks such as eyeglasses and wristwatches and jewelry,” he continues. “Sustainability is our way of doing business and is at the heart of everything Lyreco-Nespresso Pro does. At the core of Nespresso’s sustainability strategy stands the project named ‘The Positive Cup,’ in which Nespresso set up ambitious commitments - a goal to be reached by 2020. To reduce our carbon footprint, we aim to sell 100% sustainably sourced coffee, packed in 100% sustainably managed aluminum capsules.”

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Top gastronomy According to Kiss, Nespresso Pro is also targeting the Hungarian countryside’s restaurants via its recent partnership with the SVÉT restaurant association. “During the past five years, we have built strong relations with fine dining restaurants in Budapest, such as St. Andrea.

Via the Nespresso Atelier series of events, first organized in Hungary in 2016, we were discovering the epicurean fusion of coffee and gastronomy, with the help of top–ranking Michelin-starred chefs, together with Nespresso coffee experts, sommeliers and bartenders, paying tribute to the highest quality coffee that Nespresso sources from around the world. In 2018 the event series featured its first open-day dedicated to B2B. As Hungarian top gastronomy does not end within the borders of the capital city, we have started to bond with fine dining establishments in the countryside, and we have also started partnerships with event catering companies such as Albatros Party Service, Terra Catering and Waldorf Catering.” Kiss adds that their next step is to discover the best in the premium food segment, including bakery chains, looking for a multiplied volume of sales. “Mlinar Premium Bakery has already started to serve Nespresso Pro coffee, and we’d like to see further growth in this sector,” Kiss continues, adding, “Our ultimate vision is to secure a place as the preferred coffee brand in the HORECA industry in Hungary.”

Impeccable customer support Kiss points out that Lyreco-Nespresso Pro offers customized solutions for all office venues. “Our dedicated specialists carry out a thorough appraisal before recommending the most appropriate solution to suit the needs of the customers. We offer a free machine set-up, technical monitoring, 24-hour intervention and an instant loan of extra machines whenever a machine is under maintenance. Our most advanced coffee machines are integrated with flexible cashless payment system which can even handle employee ID cards or mobile payments.

This system allows customers to have top quality coffee for employees with efficient control over cost,” he notes, explaining that in his experience, A U G U S T

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DÁVID HARANGOZÓ, NESPRESSO

BESPOKE SOLUTIONS FOR OFFICES AND HORECA BY LYRECO-NESPRESSO

free on loan model. “Coffee is at the heart of the Nespresso brand, but consumer pleasure is truly the brand's purpose,” says Péter Kiss, Head of Business Unit Nespresso Professional at Lyreco Group in Hungary, who believes that good quality coffee offered in the workplace can boost employee productivity and is an invaluable way of building a positive office culture. “Coffee breaks are key to boosting social engagement and could even improve teamwork skills: having a great cup of coffee can help transform a quick chat into a quality conversation; it can open a conversation and close a deal. During a meeting, the coffee break provides a welcome pause and an opportunity to discuss and share ideas in a relaxed manner,” he summarizes.

“Researches have revealed that 8 out of 10 customers believe that a company that serves Nespresso coffee cares about quality, customers and attention to detail. 90% of those asked think that serving Nespresso coffee creates a positive image of the company.”

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COFFEE-FUELLED BUSINESS GROWTH

employers tend to fund coffee when they have less than 100 employees, while bigger firms either partially sponsor coffee consumption or charge their employees for coffee. “We have in depth knowledge of our products and services to ensure we give the best help and advice. We praise ourselves on having an impeccable customer service: we deal with complaints openly, fairly and quickly, and when customers call to place an order, no customer waits more than three rings before talking to a representative, and no customer ever has to leave a message on an answering machine. Ordering capsules is even faster online, especially choosing the recurring order option, in which case customers don't even need to remember when to order due to the automated system.” Kiss says the brand sees huge potential in the growing and evolving Hungarian hotel and restaurant market, too. “The Nespresso Pro system integrates effortlessly into every venue while delivering consistent quality, cup after cup. Thanks to its portion system, one can be certain about the intensity and aroma profile of each cup – and that’s something that fine dining restaurants and hotels prefer,” he explains. “All Nespresso Coffee Blends can be used to prepare the most elaborate recipes at the touch of a button.

Nespresso professional machines benefit from the latest technological advances, including silky rich milk mousse. Hot or cold, the result is always consistent and perfect. Currently, as many as 3,000 active business machines (Zenius, Gemini and the newest Aguila) are in use in Hungary, out of which 500 are placed in the rooms of the Budapest Marriott Hotel, Corinthia Hotel Budapest, Kempinski Hotel Corvinus and Prestige Hotel Budapest. Most 5-star hotels in Budapest have Nespresso Pro machines in their F&B areas, and we are opening towards countryside hotels around Lake Balaton, in addition to wellness spa hotels around the county.”

1st prize in the classic category 1st prize in the chronograph category 1er Prix Chronographe

1er Prix Classique

2ème Prix Classique

3ème Prix Classique

2015

2015

2015

2015

3ème Prix Classique

#ThisIsYourTime

2015

TISSOT CHEMIN DES TOURELLES AUTOMATIC. powermatic 80 movement with up to 80 hours of power reserve.

TI S S OT WATC H E S .CO M tissot, innovators by tradition

authorised retailer for swiss watches:

info@oraszalon.hu www.watchstores.hu facebook.com/bl. oraszalon phone: +36 20 42 42 550

official distributor of swiss watches:

btech hungary ltd. erzsébet királyné útja 56/b, h-1142 budapest, hungary Phone.: +36 1 433 6111 • Info@oranagyker.hu btechdistribution.hu

B L WAT C H S T O R E S : a r e n a M a L L • M a M M u t I . • C s e P e L P L a z a • au C h a n B u daö r s • au C h a n s o r o k s á r • au C h a n d u n a k e s z I • f ó r u M d e B r e C e n • M I s ko LC P L a z a s zo L n o k P L a z a • B a L ato n P L a z a V e s z P r é M • B u da P e s t a I r P o r t t e r M I n a L 2 B • P r e M I e r o u t L e t • ag r I a Pa r k e g e r • a L B a P L a z a s z é k e s f e h é r Vá r

swiss focus 140 YEARS, 140 COUNTRIES

SGS Hungária, present in this country for over a quarter of a century, is part of the SGS Group. According to András Kákonyi, “it means a great opportunity and it has a lot of advantages. It is not only that the SGS Group has a past of 140 years but it is also present in 140 countries, which is the source of huge opportunity, capabilities and experience. If a company in Hungary has any sort of international business – or anyone in the world contacts a Hungarian company – we can always provide a local service, which is not only economical but also carries the benefits of being ‘at home’ in the local language, contacts, presence, etc., which can extremely be important.

The combined experience of being in 140 countries with 140 years of experience has built up a huge amount of knowledge, information and innovation, which is now at our disposal and which we are ready to share with the members of our network.

The third benefit is the presence, in the global network, of qualifications and accreditations for different countries, regions, industry branches that are not necessarily available in Hungary but might be needed by the Hungarian economy, Hungarian companies.”

Gábor Párkányi says that “when we are asked about the added value that SGS can provide, I usually say that ‘ask us any kind of question within the scope of our profession, and we are likely to answer it right away’ – and if not, we can make a few phone calls and the answer is there within a few minutes. That is due to the very good communication we have within our global network. As a result, we have requests for information not only from clients but also from professional organizations and even from the authorities. Our customers trust our expertise, experience and our resources to support them along the way and we help them achieve outstanding performance in everything they do.”

REDUCING CLIENTS’ BUSINESS RISKS

Nyíregyháza that is also able to examine nonfood substances from environmental points of view: oils, gases, chemicals, mineral products but the main profile definitely is the food industry. If you look at the safety and quality of the different food items, it is the soil, the climate and the genetic potential present in the plant that are determinant. Yes, we are proud of this lab that is unique in the region both in its size and its scope.”

SGS OFFERS GLOBAL SERVICES TAILORED TO THE NEEDS OF EACH INDIVIDUAL INDUSTRY

Sustainability at SGS means managing a long-term profitable business while taking into account all the positive and negative environmental, social and economic effects the company has on society.

The focus at SGS is on delivering business benefits – innovative solutions and services that transform customers’ operations. “We enhance processes, systems and skills, offer solutions and services fundamental to ongoing success and sustained growth. We enable continuous improvement and improve our customers’ operations, meet their stakeholder requirements and manage their sustainability and social responsibility needs. Our services assist in developing sustainable facilities, sustainable production, better working environments and improved social environments,” András Kákonyi says.

He adds that “our carbon footprint is relatively low since our activity is not industrial, although, we are working with industrial players. Still, our people’s job involves a lot of traveling throughout the country as we have clients all over Hungary. When enlarging our car fleet, we take into consideration the European regulations and guidelines concerning CO2 emission. Also, health and safety is a priority at the company, as our staff members have to climb into barges, tracks and warehouses, etc. to get samples for testing.”

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The Business Manager for the Agriculture, Food and Life branch at SGS Hungária, Gábor Párkányi (pictured) points out that “the inspection and testing part of our activities focus on areas that can be hazardous, looking at it from the view point of the food industry and that of the customers – this is where you ‘need to be sure’ there are no toxins, pesticides, heavy metals.

Finding them, identifying them and filtering them out are crucial, no question about it.”

Independence and trust SGS audits about 2,000 clients in Hungary from multinationals like MOL, E.ON, Nestlé, and Telekom, to small firms according to different considerations: quality, environment, sustainability, information security, etc. Interestingly enough, legal requirement is by far not the biggest reason for companies asking SGS to audit them.

Business benefits gained through being audited are a much bigger motivation.

Environmental protection, health and safety, ethical behavior – if a company wishes to present a positive picture to the world, its present and would-be business partners, one of the best ways to do that is by having its values certified by an independent third party, especially one with a trustworthy image like SGS. A lot of committed company managers do this throughout the country.

On the other hand, many company bosses want their own business operations checked by an independent third party to make sure the processes applied are the right ones.

In addition, an experienced company like SGS is also able to give advice on how to improve the given company’s operation, thereby enhancing business. Since many times these audits touch upon confidential information, the business partners can rely one of the most important characteristics of SGS Hungária: it is a company that can be trusted.

A multi-lab While the head office is in Budapest, SGS has Central Europe’s largest agriculture and foodstuff inspection laboratory in Nyíregyháza.

András Kákonyi says the scope of the lab covers the widest fields of agriculture and the food industry: “from field to table. That is, starting with the soil tests, everything that affects the quality and safety of the consumable food, the substances that come into contact with it, and the associated environmental studies. The lab can perform over 1,200 types of accredited examinations and tests – as well as non-accredited tests. The total number of checks is over 1,600, with which we serve not only Hungary but also the neighboring countries to a certain extent.”

As Gábor Párkányi stresses, it is a real multilab. “Earlier, international companies have commissioned different laboratories to do different kind of tests. However, due to synergy, it is much more beneficial to have these done in one multipurpose lab like we have in A U G U S T

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SUSTAINABILITY AND CSR

the TIC industry serves a vital role at the heart of the global economy. Often unseen by consumers, we work hard behind the scenes, quietly focusing on the small details that change good products and services into excellent ones. We feel that we make the world a little bit better in the process. All our services are underpinned by our core values: we drive passion, integrity, entrepreneurialism and our innovative spirit through everything we do.

Through our unique global network we deliver independent results tailored to the precise needs of the industry or sector.”

In addition to reducing risks, our operations also include business enhancement and training activities. ”Over the years, we have gathered an immense amount of information while performing our core activities, working with a lot of companies in various industries and we can use this experience to the benefit of our clients,” he adds.

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The slogan of SGS, the world’s leading inspection, verification, testing, and certification company is ‘When You Need To Be Sure’. Talking about the fields in which SGS helps clients ‘to be sure’, András Kákonyi, Deputy Managing Director at SGS Hungária Ltd., the Swiss firm’s Hungarian subsidiary tell Diplomacy&Trade that “our activities span over several branches of the economy. In the area of TIC (Testing, Inspection and Certification) we are the market leaders globally as well as in Hungary. To put it simply: we reduce risks for business partners and end-users alike. These can be business, financial, environmental, ethical, etc. risks – whatever is important for a market player. From ensuring that the paint on your children’s toys isn’t toxic, to making sure that the labels on the food you buy are accurate,

swiss focus Pharmaceutical Industries and Associations (EFPIA) and local transpositions. We encourage HCPs to consent to individual disclosure as part of their commitment to medical integrity.”

Social responsibility

CHANGING THE PRACTICE OF MEDICINE

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DÁVID HARANGOZÓ

NOVARTIS REGARDS HUNGARY AN IMPORTANT COUNTRY FOR RESEARCH & DEVELOPMENT “At Novartis, we are striving to reimagining medicine. And this includes developing first-in-class break-through innovation in areas of high unmet medical need,” Dr. Roland Kreissig, Country President & General Manager, Novartis Oncology at Novartis Hungary Ltd. tells Diplomacy&Trade. “Break-through innovation may come through the development of new technologies, for example, in gene and cell therapies: we have been pioneers with the introduction of CART (chimeric antigen receptor T cell) technology, which has the potential to transform cancer care. We also recently acquired the company AveXis, which expands our position as the leader in gene therapy in the field of neuroscience. Innovation can also come from products with new mechanisms of action, for example, in the field of heart failure, which is one of the leading causes of cardiovascular death and hospitalizations.”

Dr. Kreissig stresses that Novartis wants to be the world’s leading company in research and drug development, which generally is a very costly and lengthy process. “So, the question is always how we can bring break-through innovation to more patients faster and more efficiently.

New developments like big data, digitization, artificial intelligence and machine learning may be able to transform the way we do research and development in the future, for example, by allowing us to identify new drug targets more reliably, by enabling us to offer our clinical trials to more patients in need, and by conducting clinical trials more effectively.” w w w . d t e u r o p e . c o m

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Novartis and Hungary According to the General Manager, Hungary is an important country for Novartis and for the company’s investments in clinical development as this country “has high quality infrastructure and I can also speak highly of the capabilities and skills of Hungarian physicians. R&D activities also help patients in Hungary to have access to innovative medicines early on.”

Novartis Group, has four divisions operating in Hungary: the Innovative Medicines business is divided into two divisions, one of which (Novartis Oncology) is specialized in cancer therapies, and one, called Novartis Pharmaceuticals, which is focused on noncancer diseases. The main therapeutic areas are Cardiovascular& Metabolism, Neuroscience, Immunology & Dermatology, Respiratory diseases and Ophthalmology & Transplantation. Additionally, the firm has its generics business, which is operated by its Sandoz division and an Alcon division which is focused on eye care. “Given the breadth of our portfolio across innovative medicines, generics, and eye care, we are the leading pharmaceutical company in Hungary.”

Swiss values For Dr. Kreissig, Switzerland stands for quality and innovation, values that were highlighted at the Swiss Business Day last year where many innovative Swiss companies across multiple industries were represented. “Those are also values we as Novartis follow here in

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Hungary. Quality is part of everything we do, be it how we deliver our products to patients, how we care about patient safety, or how we interact with the medical community and all of our other stakeholders here in Hungary.

Similarly, as it relates to innovation – beyond our highly innovative in-market products and our pipeline, we are constantly trying to innovate the way we work so that we can better meet the needs of patients in Hungary. As an example, PatientView’s 2017 ’Corporate Reputation of the Pharmaceutical Industry – from the Patient Perspective’ ranked Novartis No. 4 overall, and as the number one partner for patient groups, and second in corporate brand awareness. The ranking is based on surveys with 1,330 patient groups in 95 countries.

Transparency Novartis as a company finds it important to act in a transparent way in its cooperation with healthcare professionals (HCPs) and organizations. The General Manager highlights that their vision is to be a trusted leader in changing the practice of medicine. “A big part of gaining this trust is being transparent – being open and clearly disclosing what we do, how we work, where we are successful. This applies across all aspects of our business not only in Hungary but around the world.

For example, Novartis discloses payments and other transfers of value made to HCPs and organizations in Europe in line with the disclosure code of the European Federation of

Part of the corporate responsibility portfolio of the company is the Novartis Foundation that supports access to healthcare in sub-Saharan Africa and on the Indian subcontinent. Activities like this may have been one of the factors in that Novartis is ranked high on the Access to Medicine Index, which ranks companies on how readily they make their products available to the world’s poor.

The General Manager says that while significant progress has been made in tackling some of the world’s greatest healthcare challenges, billions of people still lack adequate access to medicines. “We are working for ways to re-imagine access to healthcare through programs that help patients worldwide get the medicines they need, when they need them, at prices they can afford – including those in lower-income countries weighed down by the dual burden of infectious and chronic diseases.

Our company’s flagship access programs were recently combined into one new unit, Novartis Social Business: Novartis Access, Malaria Initiative, Healthy Family programs, SMS for Life, and NGO Supply. Through these programs, we devise novel approaches to tackle infectious and chronic diseases and partner with public and private actors to build capacity and strengthen healthcare systems in lowerincome countries.”

Since the launch of Novartis Access in September 2015, more than 800,000 treatments, each providing one month supply of medicine, have been delivered to Kenya, Ethiopia, Cameroon and Lebanon. Beyond the medicines, people at Novartis are working with partners to ensure proper implementation and roll-out on the ground: capacity-building activities to screen and diagnose people for diabetes and hypertension are running in Kenya and Cameroon. “In the field of cancer, we have started working with the American Cancer Society and the American Society for Clinical Pathology across Ethiopia, Tanzania, Uganda and Rwanda to help provide patients with cancer diagnostics and appropriate care and treatment,” he adds.

Other activities in the company’s social responsibility policy includes Novartis’ recent renewed drug donation of Egaten® (triclabendazole) until 2022 to the World Health Organization, reaffirming its commitment to the fight against liver fluke. “In addition, we are looking at our environmental footprint to see how we can become an environmentally sustainable company as it relates to water consumption, clean water, but also how we use plastics and energy in our offices, etc.”

Speaking of specific initiatives in Hungary, Dr. Kreissig mentions the community partnership day, where all of the Novartis group employees can support the community, such as excursion with disabled kids or painting a corridor for the national trauma center for children. “Energized for Life is a program to support associate well-being at Novartis, and we have programs in place where we provide access to critical medicines to patients before the product is reimbursed in Hungary,” he concludes.

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swiss focus

SWISS WATCHES NEVER GO OUT OF FASHION FROM TEENAGE ELECTRONICS BUSINESS TO MARKET LEADER IN SWISS WATCHES

TISSOT, THE SUCCESS STORY

As László Bakonyi highlights, “in watch trade worldwide, Rolex is by far the No. 1 brand. Tissot is the only brand that is also in the club of billionaires of five brands that have an annual turnover of over CHF one billion. In Switzerland, it is an entry brand that is affordable but guarantees Swiss quality. Take a fashion watch, it may cost the same or more but it has nothing to do with Switzerland. That is when one starts contemplating: buying something of Swiss quality or buying a disposable fashion watch to try whether that is good enough? Tissot covers a whole range of the portfolio from the entry products to gold watches – everyone finds the one that suits him or her.

Currently, Tissot works with 400-500 models right now, of which 300-350 are available in our stores.”

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Proficiency of the French language, acquired when he lived in France with his family, also opened the doors for him to directly contact Swiss watch makers in 2006.

In celebration of this quarter of a century, the company will market a limited series of watches this fall. “We have agreements with all the Swiss manufacturers we represent in Hungary.

125 special Tissot watches will be manufactured exclusively for us and 25 watches by each of the other brands,” Bakonyi says.

Swiss values The inscription ‘Swiss-made’ on a watch means that the final product must contain a minimum of 60% Swiss labor and/or parts of Swiss origin.

This is something that is very carefully checked and guarantees Swiss quality. It is the Contrôle Officiel Suisse des Chronomètres (COSC), the Official Swiss Chronometer Testing Institute, which is responsible for certifying the accuracy and precision of wristwatches in Switzerland.

Watches receiving the certification must not be late more than ten seconds a month. When you buy a watch, you receive a numbered certificate.

László Bakonyi uses the example of a watch from the Swatch Group, the largest company in Swiss watch production and trade (with brands like Tissot, Certina and Swatch), with the characteristics of Swiss precision demonstrated all over: the case, the dial, the hands, etc. Even the batteries used in Swiss watches are ‘made in Switzerland’.

Btech Hungary also applies several Swiss business values in its operation. “In Swiss businesses, things are in order. Here, at the Hungarian company we also work professionally, everything is planned and organized. We apply Swiss precision. Look at our shops, everything is neatly organized and cared for,” the General Manager points out.

Changing customer demands Nowadays, fashion watches have a somewhat determining role on the market as regards customer demands and offered selections. László Bakonyi explains that “if you look at watches made in the 1960s, they were small compared to what people wear today. As of a few years ago, one could see this trend of watch cases getting bigger and bigger but now, the process reversed and they are now gradually getting smaller. So, sizes change as do the looks of the watches. Designers do not have an easy job to come up with innovative ideas. Until recently, the minimal, simple design was trendy.

Then, colors were introduced. It was not customary for top brand watches to have vivid colors but now, Tissot, for instance, makes for the Tour de France watches with red or yellow hands and cases.

Another example of changing habits is that of a new company we have just started to represent that manufactures accessories in different colors so that watch straps can be changed to match clothing or other accessories.”

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shop of electronic goods but customers began asking about watches as well. So, in response to customer demand, I expanded the store’s portfolio with watches – just one brand at first and then more. By 1996, I had seven stores. In 1997, I accidentally met the person who was responsible for the real estate development of the first Auchan store in Hungary, the one in Budaörs, just outside Budapest. He gave me a good location in this development but with the condition that at least 70% of the store’s offerings would be watches. At that time, only 30-40% of the product in my store was watches with the rest made up of electronic goods like electronics organizers, translator machines, etc. I knew how important a business Auchan was, so, I agreed and created a store packed with Swiss watches.”

However, it turned out that it would not really work because “the store was too elegant, too expensive, a jewel box – too much for a location next to the entrance of a supermarket. I changed the concept, diversified the portfolio and the business became a success,” he adds.

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Btech Hungary Ltd. is a market leader in the wholesale and retail sale of watches in Hungary in terms of turnover, number of employees and product portfolio. It has two divisions: the wholesale trading of electronic products, office supplies, watches, etc. and BL Watch salons. As the owner and General Manager of the company, László Bakonyi explains to Diplomacy&Trade, “five of the watch brands (Oris, Tissot, Certina, Flik-Flak and Swatch) are Swiss and we are the sole distributor of those in this country. But, in fact, all the other products they distribute are also from Switzerland. These are licensed products made by Swiss companies, although, the actual brands are mainly German, French or Italian. As for product portfolios, we represent the entire range of several watch manufacturers that we feel is important to have on the Hungarian market. These watches are priced from HUF 10,000 to HUF two million and the offerings of the individual brands complement one another so that everyone can find what they want,” he adds.

From electronics organizers to Swiss watches Btech Hungary employs about a hundred people, including 25-30 at the headquarters in Budapest.

The company has 15 stores nationwide in cities like Debrecen, Miskolc, Székesfehérvár, Szolnok, Veszprém or Eger as well as at Budapest Airport.

This year, the company celebrates the 25th anniversary of its establishment. László Bakonyi was only 15 when he started his business career by selling electronics organizers, which were hot items in those days. “In 1993, I opened a

With the advancement of technology, people don’t necessarily need a watch to know what time it is, a watch is more of a fashion statement, like sunglasses, a bracelet, a ring or other accessories. According to László Bakonyi’s experience, interestingly enough, more men than women buy watches. One possible explanation is that men do not really wear other accessories.

In addition, in snobbish circles, it always counts what watches people wear, it is a status symbol.

“Smart watches that are coming into fashion do not have much of an impact on the watch market, at least not for the moment but they may on the long term. I am convinced that traditional Swiss watches will never go out of fashion - similarly to old-timer cars. Swiss-made will always be Swiss-made!

Novartis Group

Novartis provides innovative healthcare solutions that address the evolving needs of patients and societies. Headquartered in Basel, Switzerland, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, cost-saving generic and biosimilar pharmaceuticals and eye care. Novartis has leading positions globally in each of these areas. In 2017, the Group achieved net sales of USD 49.1 billion, while R&D throughout the Group amounted to approximately USD 9.0 billion. Novartis Group companies employ approximately 125,000 full-time-equivalent associates. Novartis products are sold in approximately 155 countries around the world.

For more information, please, visit http://www.novartis.com.

swiss focus

“For our clients’ comfort, Helvetic Clinics Budapest is a ‘Clinic Hotel’ that offers dental treatment and accommodation: the clinic and 12 Revay hotel are in the same building located a step away from Andrássy Avenue, 200 m from the Opera House on the Pest side,” László reveals.

“Here we have negotiated a preferential rate for our patients, including their first night free, along with the first consultation. Should they need to rest after a dental surgery, clients just take the elevator to comfortably rest in their room.

This is why the waiting room is almost empty while the clinic is 93 % full all the time.” Péter adds. “Of course, patients may choose to stay

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Digital revolution The clinic specializes in dental procedures such as gnatology, dental implants, root canals, and veneers among others with technological support such as 3D cone beam x-ray (CBCT), 3D milling of crowns (Ceramill/Amann Girrbach). “The digital revolution is changing the world, and dentistry is no exception,” says Péter, whose main area of expertise is to take care of one’s smile: complex aesthetic restoration and functional rehabilitation using computerized occlusal analysis with Arcus Digma II. “With digital dentistry equipment in use, traditional dental problems are given upgraded solutions, and there are a lot to choose from: CAD/CAM restorations, computerized case presentations, digital radiography, digital impressions, imaging for implant placement.”

László, who is a Periodontist and Implantologist, adds, “The digital revolution is changing the workflow and consequently changing operating procedures. Advancements in digital dentistry have allowed for extremely streamlined processes, which have shown positive results in terms of both time and cost for dentists and patients alike. Improved accuracy is also a huge benefit of utilizing digital dentistry technologies.

Finally, digital dentistry technologies increase the predictability of outcomes. With these leadingedge technologies in use, dentists can easily foresee the outcome of a specific procedure and improve the patient’s experience – which, at Helvetic Clinics Budapest, should be nothing less than outstanding.”

HELVETIC DENTAL CLINICS BUDAPEST

wherever they want, but nothing is more practical than to wake up at 8AM to reach your 8:30AM appointment,” László points out. “12 Revay, with its 53 rooms and 3 apartments, is of course open to anyone, but it is true that our patients make up 30% of their business. The 200 square meter lab is also in-house, one floor above the clinic, which optimizes communications between the clinic and the lab,” he continues. “This unique ‘clinic – lab – hotel’ concept and the uncompromised quality of dental care make Helvetic Clinics Budapest the preferred choice of thousands of patients, 95 % of them foreigners.”

destination, Hungary is still the biggest market in Europe, highly competitive with excellent features.

Budapest is one of the old continent’s most beautiful cities, a small Paris, thanks to its thousand-year-old history, culture and architecture. Our international clients, who often spend a week here, pass their leisure time in town dining and relaxing, enjoying what Budapest has to offer. They are absolutely charmed by the beauty of the city, and the buzzing atmosphere of all four seasons. Considering all this and the number of flights going in and out of Budapest airport, it is hard to pick a rival city within Europe. It is an absolute win-win to have a clinic here.”

Budapest, a dental tourism hotspot

Exceptional care, comfort and peace of mind

“We acknowledge from our growing number of clients that there is significant international demand for quality dental service,” the brothers state.

“While Croatia is coming up as a dental tourism

“Our task is to create a stress-free environment, an atmosphere that is markedly different from most clinics. Here, each dentist strictly focuses on his own specialty, so by the age of 35, our staff A U G U S T

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All services under one roof

THE FUTURE OF DENTISTRY IS NOW

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Helvetic Clinics Budapest, since its move in 2015 to its new premises in Révay Street 12, has quickly developed a high-profile clientele that includes businessmen, TV stars and athletes, as well as local residents seeking exceptional dental care.

“Our clients arrive to Hungary from all over the world, looking for a modern clinic equipped with the latest technology and impeccable quality dental care that comes with the longest and most reliable guarantees one can find,” say Drs. László and Péter Lukács, who manage and co-own the clinic opened with two Swiss entrepreneurs, Pierre Chaker and Jean François Empain.

According to the Lukács brothers, the dental facility is accredited by the Global Clinic Rating (GCR - a database of 400,000 medical clinics), which currently rates Helvetic Clinics Budapest in the top 10 clinics worldwide, out of a total 130,000 dental clinics.

have done way more crowns, bridges, inlays, root canals, veneers and dentures than dentists who do not specialize. We also function as a training center for Semmelweis University in Hungary,” the owners reveal. “There is a young spirit here”.

When patients arrive to Budapest, a courtesy driver picks them up from the airport and takes them to their chosen accommodation, at no cost.

The same goes for their return trip: no matter the day, the hour, whether they use the airport or a bus or train station, the clinic will make transportation easy. “Helvetic clinics Budapest targets individuals mainly within Europe's developed countries with a claim of dental treatments 30-70% cheaper than those in its clients' home countries,” says Péter. “We are not a discount clinic, selling cheap dentistry. We offer the best dental care at the lowest possible prices, but never compromise on quality,” László agrees.

According to him, the quality of professional work at the clinic is guaranteed by a highly motivated and caring team of dentists, dental surgeons, technicians and implantologists. In addition, he highlights the work of their coordinator team whom he refers to as ‘the soul of the clinic’, and whose service ‘behind the scenes’ includes CMS tracking every stage of the patient journey from their initial enquiry, to the treatment itself, after-care and consistent follow-up. The doctors say they place great emphasis on accompanying patients every step of the way and providing a personalized service. “We take time to listen to our patient’s concerns, answer all of his or her questions, and explain in detail the various tailored solutions to one’s need. We understand that people are different, with different wishes and budgets. Our patients (often those who have been mistreated somewhere else) are usually given the opportunity to choose between several treatment plans, where the pros and cons are always clearly explained.”

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N Combined fuel consumption in l/100 km: 6,6–6,8; combined CO₂ emissions in g/km: 172–178. Fuel consumption and CO₂ emission figures given in ranges depend on the tyre/wheel sets.

society World Cup final The Ambassador of the Republic of Croatia to Hungary, Dr. Mladen Andrlić, invited guests to his Embassy in Budapest to watch the soccer World Cup final between Croatia and France televised in July. The event was co-organized with the French Embassy.

Egypt Revolution Day

PICTURES (EMBASSY OF FRANCE, EMBASSY OF MEXICO), SÁNDOR LACZKÓ, ATTILA NÉMETH/US EMBASSY, DÁVID HARANGOZÓ

The Ambassador of the Arab Republic of Egypt Mahmoud Assem Mahmoud Elmaghraby welcomed guests to the Museum of Military History in the Buda Castle to celebrate the anniversary of the Egyptian Revolution on July 23, 1952, which led to the declaration of the modern republic of Egypt.

Bastille Day The French Embassy organized its traditional July 14 celebration of the 1789 French Revolution at the ambassadorial residence in the Buda Hills. The guests were welcomed by the Chargé d'Affaires Thibault Lespagnol and Ambassador-designate Pascale Andreani.

U. S. Independence Day Ambassador David B. Cornstein and the Chargé d’Affaires, a.i. of the Embassy of the United States of America, David J. Kostelancik welcomed guests to a reception at the ambassadorial residence in the Buda Hills to celebrate the 242nd anniversary of the Independence of the United States.

Frida Kahlo exhibition ‘Frida Kahlo – Masterpieces from the Dolores Olmedo museum in Mexico City’ (works of 20th century Mexican painter Magdalena Carmen Frida Kahlo) was opened in the Hungarian National Gallery in the Buda Castle in July by the Mexican Ambassador to Hungary, David Nájera.

Columbia Independence Day

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The Ambassador of the Republic of Colombia to Hungary, Ana Piedad Jaramillo Restrepo held a reception at her country’s Embassy in Budapest on the anniversary of the Colombian Declaration of Independence on July 20, 1810 that took place in Santa Fe de Bogota in the Spanish colonial Viceroyalty of New Granada.

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witty leaks WITTY

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

LE A K S

MASSAGE, MENUS AND MUAY THAI THE BANGKOK-BUDAPEST CONNECTION

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COURTESY OF THE EMBASSY OF THE KINGDOM OF THAILAND

BY THAI AMBASSADOR JAKKRIT SRIVALI

When I took up my posting here in the spring of 2017, I was pleasantly surprised to see that despite the distance and differences between our two countries, some elements of Thai culture had found their way into Hungarian life.

The most noticeable, of course, was Thai massage.

Everywhere I went, it seemed, there was a Thai massage salon. In Budapest alone, there is probably at least one within walking distance, easily identifiable by its storefront life-size cardboard cutout or poster of a smiling lady in Thai traditional garb offering a wai, the Thai gesture of greeting.

I later learned that this aspect of Thai culture had been so wholeheartedly embraced by Hungarians that the majority of some 800 Thais living in Hungary were massage workers.

In Thailand itself, massage had over the decades taken on a somewhat unsavory reputation, so much so that legitimate establishments had to present themselves as purveyors of traditional Thai massage. For the past couple of decades, however, traditional massage, together with Thai traditional medicine, has been experiencing a renaissance.

I was aware that, in the West, Thai massage had a small but growing following, as more foreign tourists were discovering its therapeutic benefits.

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of Thai restaurants in town? This was well beyond expectation.

As good as Bangkok So, I set out to learn more about the BangkokBudapest massage connection, visiting salons in Hungary’s major cities and talking to the workers there.

In spa towns like Héviz, Thai massage was part and parcel of the wellness regimen, recognized for its effectiveness in treating basic aches and pains. In border towns like Sopron, tourists liked to cross over for the cheaper Thai massage, although, local middle-aged men and women made up a good part of the regular clientele.

I was naturally curious whether the massage on offer in Hungary was on a par with what can be found in Bangkok. Being massage-phobic myself, I asked my wife to try a few places near home.

The verdict: as good as Bangkok, though each masseuse’s style is different, so you may chose a masseuse who is not necessarily close to you, depending on personal preferences.

Thai food – a novelty The popularity of Thai massage in Hungary raises the question of why the number of Thai restaurants is much smaller, when the reverse is true in most big cities.

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To be sure, there are dozens of Thai restaurants and cafes spread across Budapest. Most of them are doing a thriving business. Yet, the number of eateries featuring authentic Thai flavors only number around a dozen or so.

After some firsthand research, I have concluded that Thai food, while popular, is still a novelty in Hungary. Although a few serve thoroughly authentic Thai fare, many more offer their own versions of Thai dishes as part of the menu. With food lovers eager to discover Thai cuisine, even a mediocre restaurant can get by with a Thai-sounding name and nods to Thailand in its décor and marketing materials.

As part of an experiment, I walked into a wellknown eatery that included a popular Thai dish in its name. I had low expectations: the place was obviously geared towards a demographic of which I was no longer a part, the young and hip crowd. But judging from how packed the place was at four in the afternoon, they had to be doing something right.

The menu board offered the trendy option of selecting your own base, toppings and sauces.

Instead, I decided to order a standard dish that should pose no difficulty for any Thai cook.

What I got after a lengthy wait was palatable enough, but its appearance and flavor were unrecognizable. The cook had liberally used sauce as a substitute for skill, and the cooking technique was wrong, resulting in a soggy mess.

Liberties with ingredients I do not believe that Hungarian restaurateurs are deliberately misleading their customers. On the contrary, they seem sincere in their love of Thailand and its food. Some even spend months in Thailand learning Thai cooking, as taught by celebrity chefs.

Their weakness, if we can call it that, is perhaps overconfidence in their ability to recreate Thai dishes accurately. Some take such liberties with the ingredients that they alter the dishes beyond recognition without even realizing it. Some even achieve the confidence to let go their Thai chefs and take on the task themselves, with predictable results.

In some other countries, I have seen restaurant goers take decades to develop a taste for genuine Thai food in all its spicy, aromatic complexity. The same is likely to be true of Hungary. So until Thai food is more established in Hungary, I will stick with a few familiar restaurants, or when all else fails, my chef.

Muay Thai Another Thai cultural import that I found to be unexpectedly popular among Hungarians is Muay Thai, or Thai boxing. Although Thailand is a Buddhist country, its martial tradition dates back centuries, when Siam was often engaged in warfare with its neighbors, with kings clashing halberds on elephant back, and foot soldiers, often conscripted from peasants, relying on their martial arts skills for survival.

With prolonged peacetime and modern warfare relying less and less on hand-to-hand combat, Muay Thai underwent a change. It became a spectator sport popular among punters in a country where gambling is off-limits except for the lottery, horse races and boxing matches. But as the punters aged, it began to slowly lose its audience.

Like Thai massage, however, Muay Thai has enjoyed renewed popularity among today’s generation of Thais. It featured front-and-center in blockbuster action movies like Ong Bak, which earned its leading man Tony Jaa rave reviews and comparisons to Bruce Lee. It has been incorporated into the training of leading MMA (mixed martial arts) exponents, and catapulted Thai boxers like Buakaw Banchamek to global superstardom.

In Hungary, Muay Thai has found a growing niche in the health and fitness industry. To my surprise, I learned that there are almost forty Muay Thai clubs in this country of less than ten million.

Muay Thai is an extremely demanding sport, physically and mentally. Yet in my visits to Muay Thai clubs around the country, I cannot help noticing that Hungarians have taken to the sport with more enthusiasm, seriousness and respect than many Thais, with some going on to become world or European champions.

I see this as a reminder that too often we take what is good in our own culture for granted.

The true value of such things – not only Thai boxing, but also food and massage – can often be more fully appreciated through the eyes of foreigners.

From what I have seen, the fact that Hungarians have made parts of Thai culture their own reveals the true openness of the Magyar spirit. It is this openness at the people-to-people level that I believe will help make the budding BangkokBudapest connection stronger in the years to come.

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Hungary offers many options in international education, so expats and diplomats looking to stick with the curricula of their home countries can choose out of a large number of private international schools for their children. Current trends indicate that a growing number of local residents are also more likely to enroll their children into these schools, because the multicultural environment and the opportunity to gain excellent language skills cannot be reached elsewhere. All of these schools satisfy the requirements of the Hungarian national system, while their programs may vary from the International Baccalaureate (I.B.) program, which includes PYP, MYP and Diploma to the British GCSE and GCE examination systems.

THE GLOBAL SCHOOL OF MANAGEMENT

WITH A FRENCH TOUCH!

ANGERS - PARIS - BUDAPEST - SHANGHAI UNDERGRADUATE 5-YEARS PROGRAMME MASTERS IN MANAGEMENT

- Entrepreneurship - Corporate Financial Management - Banking and Financial Engineering - Consumer Goods Marketing - International Business - Brand Marketing and Retailing in China - Corporate Communications and Digital Media - Webmarketing

MASTERS OF SCIENCE (MSc) - MSc in Digital and Data for Value - MSc in Entrepreneurship and Design Thinking - MSc in Financial Analysis - MSc in International Entrepreneurship (with IBSA)

PROGRAMMES TAUGHT IN ENGLISH

infomaster@essca.fr

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AMERICAN INTERNATIONAL SCHOOL OF BUDAPEST www.aisb.hu 2094 Nagykovácsi, Nagykovácsi út 12.

TEL.: +3626 556 000 E-MAIL: admissions@aisb.hu

INSTITUTE OF ADVANCED STUDIES KŐSZEG (iASK) www.iask.hu 9730 Kőszeg, Chernel utca 14.

TEL.: +3694 200 520 E-MAIL: info@iask.hu

ANDRÁSSY UNIVERSITY BUDAPEST www.andrassyuni.eu 1088 Budapest, Pollack Mihály tér 3.

TEL.: +361 266 3101 E-MAIL: muriel.wagner@andrassyuni.hu

INTERNATIONAL BUSINESS SCHOOL – BUDAPEST www.ibs-b.hu 1031 Budapest, Záhony utca 7.

TEL.: +361 588 8612 E-MAIL: info@ibs-b.hu

BRITANNICA INTERNATIONAL SCHOOL, BUDAPEST www.britannicaschool.hu 1121 Budapest, Kakukk utca 1-3.

TEL.: +3630 342 4886 E-MAIL: contact@britannicaschool.hu

INTERNATIONAL CHRISTIAN SCHOOL OF BUDAPEST www.icsbudapest.org 2049 Diósd, Ifjúság utca 11.

TEL.: +3623 381 986 E-MAIL: registrar@icsbudapest.org

CENTRAL EUROPEAN UNIVERSITY www.ceu.edu 1051 Budapest, Nádor utca 9.

TEL.: +361 327 3000 E-MAIL: student-info@ceu.edu

LAUDER JAVNE JEWISH SCHOOL & KINDERGARTEN www.lauder.hu 1121 Budapest, Budakeszi út 48.

TEL.: +361 275 2240 E-MAIL: javne@lauder.hu

DEUTSCHE SCHULE BUDAPEST www.deutscheschule.hu 1125 Budapest, Csipke út 23.

TEL.: +361 391 9100 E-MAIL: marketing@deutscheschule.hu

ORCHIDEA INTERNATIONAL SCHOOL www.orchideaiskola.hu

GREATER GRACE INTERNATIONAL SCHOOL www.ggis.hu 1125 Budapest, Szilágyi Erzsébet fasor 22/b TEL.: +361 275 4795 E-MAIL: info@ggis.hu

SEK BUDAPEST INTERNATIONAL SCHOOL www.budapest.iesedu.com 1021 Budapest, Hűvösvölgyi út 131.

TEL.: + 361 394 2968 E-MAIL: contact.sekbudapest@iesmail.com

GUSTAVE EIFFEL FRENCH SCHOOL OF BUDAPEST lfb.hu/hu 1029 Budapest, Máriaremetei út 193-199.

TEL. : +361 275 4296 E-MAIL: communication@lfb.hu

THE BRITISH INTERNATIONAL SCHOOL BUDAPEST www.nordangliaeducation.com 1037 Budapest, Kiscelli köz 17.

TEL.: +361 200 8488 E-MAIL: office@bisb.hu

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BILLIONPHOTOS.COM

ESSCA SCHOOL OF MANAGEMENT www.essca.fr 1093 Budapest, Czuczor utca 6.

TEL.: +361 210 9590 E-MAIL: Zsuzsa.DELI-GRAY@essca.fr

District 10: 1105 Budapest, Cserkesz utca 10.

TEL.: +3670 323 2775 E-MAIL: info@orchideaiskola.hu District 13: 1139 Budapest, Hajdú utca 18-24.

TEL.: +3670 323 2543 E-MAIL: secretary@orchideaiskola.hu

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JAZZ SUMMER IN PANNONHALMA

21TH JEWISH CULTURAL FESTIVAL

AUGUST 26-SEPTEMBER 2 MULTIPLE VENUES IN BUDAPEST Organized annually by the Jewish Tourism and Cultural Center, the Jewish Summer Festival in Budapest is a great opportunity to learn about Hungarian Jewish culture. Klezmer music, cantor concerts, classical music concerts and light music concerts are on the list of programs every year, in addition to film screenings and theater programs. Performers in 2018 include the Budapest Klezmer Band & Barcelona Gipsy Balkan Orchestra who will open the festival this year at the Dohány Street Synagoge, in addition to Bea Palya and Balázs Szokolay-Dongó. www.zsidokulturalisfesztival.hu

DAVID HELFGOTT: RACHMANINOV THIRD (PIANO CONCERTO)

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AUGUST 15, PAPP LÁSZLÓ BUDAPEST SPORT ARENA 22 years since the release of the Oscar-winning movie ‘Shine’, which featured the life of David Helfgott (played in the film by actor Geoffrey Rush), the pianist will once again embark on the rare challenge of performing a piece central to the film: Rachmaninoff’s Piano Concerto No.3 (in D minor, version for two pianos), widely known as one of the most technically demanding piano concertos ever written. David Helfgott is one of Australia’s most prolific and treasured musicians, who took the world by storm over two decades ago, and ever since, has enchanted audiences with his passionate musical interpretations and triumphant personal story. www.budapestarena.hu

BALÁZS TOKAJI, ELOADASOK.COM, BERNARD RIE, JEWISH CULTURAL FESTIVAL, SÁNDOR CSUDAI - WWW.FACEBOOK.COM/CSUDAISANDOR

AUGUST 17 AND 31, PANNONHALMA Taking place at two locations, one at the new tasting terrace of the Abbey Winery Pannonhalma and the other at the Viator restaurant, this summer fest has two major attractions in August. On August 17, starting at 7.30 PM, the tasting terrace will host the Zita Gereben Quintet featuring János Ávéd on saxofone, and on the last Friday in August, the Andrea Malek Soulistic will perform as the closing event of the Viator Jazz Dinner series. We also suggest visiting the Archabbey and its garden, and joining a guided tour of the Abbey Winery Pannonhalma. www.bences.hu

SZIGET 2018

AUGUST 8-15, HAJÓGYÁRI SZIGET Nearly half a million people come every year to Sziget, dubbed the ‘Island of Freedom’, for a week of music and entertainment and non-stop partying.

Organized on a beautiful green island every August since 1993, the Sziget festival celebrates music, art, theater and dance based on the principles of freedom and tolerance. The biggest music and arts festival in Europe this year presents the Gorillaz, KYGO, Lana del Rey, the Arctic Monkeys, Dua Lipa, Lykke Li, Parov Stellar, Bonobo, the Milky Chance, the Cigarettes After Sex and Zara Larsson, to name only a few on the list of international performers. www.sziget.hu

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AUGUST 10, MARGARET ISLAND OPEN AIR THEATRE The American Leonard Bernstein was a colorful wonder of the world: a composer, conductor, author, music lecturer, pianist and media artist. To commemorate the centenary of the Maestro’s birth, the Open-Air Theatre selected the orchestral suite of West Side Story, two famous excerpts of his Candide as well as a selection of Gershwin tunes, to be performed by the Hungarian State Opera House Orchestra and Choir, soloists Zita Szemere and József Balogh. The concert, conducted by Nimrod David Pfeffer (USA), is part of the three-month long Budapest Summer Festival. Visitors to the island and audience members can enjoy the unique sights of Margaret Island, including the 105-year-old Water Tower and the Open-air Theater located in the triangle of the several hundred year-old giant Platanus tree, the Saint Margaret Ruins and the monument of the Premontre Monastery. www.szabadter.hu

FLOWER CARNIVAL

AUGUST 14-21, DEBRECEN, 220 KM EAST FROM BUDAPEST While Budapest celebrates August 20 (Saint Stephen's Day, commemorating Hungary's first king and the foundation of the Hungarian state) with a series of state ceremonies and concerts, the city of Debrecen organizes a flower festival to mark the official State National Day. In fact, an entire week is spent in the spirit of celebration, music and dance in the second largest city in Hungary.

The festival has gradually grown into one of Hungary’s best known and Debrecen's most significant festival that offers a spectacular carnival atmosphere when the number of Debrecen’s population doubles. During the fiesta, a wide range of folklore programs, open-air theatrical performances, concerts (including Budapest Bar), a street art show and a number of exhibitions welcome visitors, at different venues including Kossuth Square just in front of the emblematic Great Church of the city, and Nagyerdő, the ‘green heart of Debrecen’. The highlight and most memorable part of the festival is the closing day’s parade of the flower carts or floats, made exclusively of floral components. Millions of blossoms are built into different forms, displaying famous Hungarians or even scenes from musicals and Hungarian folk tales. The floats are accompanied by dance ensembles and cheerleaders. www.debreceniviragkarneval.hu

ST. STEPHEN’S DAY

AUGUST 20, MULTIPLE LOCATIONS COUNTRYWIDE August 20th is the greatest national holiday for Hungarians, celebrated with day-long festivities followed by spectacular fireworks throughout the country.

St. Stephen’s Day commemorates the foundation of the Hungarian state, as Stephen I, the first king of Hungary was canonized on this very day. Festivities in Budapest usually start at 8.30 AM with the raising of the Hungarian flag in Kossuth Square and continue all day long, culminating in a spectacular fireworks display over the Danube. The main events include the procession of St. Stephen’s Holy Right Hand around the Basilica, the Court of St Stephen, a historical playhouse, a water parade and an air show along the banks of the river Danube.

photos by

NORBERT PORCIO/WWW.TRILITE.HU, DÁVID HARANGOZÓ, GORDON PARKS - TIME LIFE PICTURES/GETTY IMAGES, DEPOSITPHOTOS.COM

BERNSTEIN100: AN AMERICAN IN PARIS – BERNSTEIN AND GERSHWIN ON THE MARGARET ISLAND

32ND FESTIVAL OF FOLK ARTS

AUG 17-20, CASTLE DISTRICT The Festival of Folk Arts (Mesterségek Ünnepe) is the most significant forum for living folk culture in Hungary. It is a uniquely diverse fest, which has received the Certified European Festival title by the European Festival Association. In the historic atmosphere of the Buda Castle, visitors are encouraged to meet the most distinguished representatives of traditional craftsmen, such as leatherworkers, candle makers, beading masters, potters, woodcarvers, egg painters and gingerbread makers. The fest’s main theme this year is embroidery and the guest of honor is Mongolia. The 500th anniversary of the Reformation will be celebrated with a large national exhibition and an international blacksmith congress will also be held during the event series. Among the performers on stage this year, are Félix Lajkó, the Szent-Efrém Manchoir, Balázs Dongó Szokolói, Anna Csizmadia, Young Hearts Dance Ensemble, János Pályi, the Tükrös Band, the Buda Folk Band, the Folk Embassy, Zsolt Zsikó and his orchestra, the Bara Orchestra, Zoltán Kátay and the M.É.Z. www.mestersegekunnepe.hu

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kygo

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Mumford & Sons

EUROPCAR SINGLE LOGO File: 20151645E Date : 25/09/2015 AC/DC validation : Client validation :

8-15 august 2018 budapest

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summertime easy living

OUTDOOR DINING RECOMMENDATIONS

SEASONS WINE BISTRO 1061 Budapest, Liszt Ferenc tér 7. • +36 1 709 2468

CORINTHIA HOTEL BUDAPEST – SKY LOUNGE 1073 Budapest, Erzsébet krt. 43-49 • +36 1 479 4000

www.seasonsbistro.hu

budapest@corinthia.com • www.corinthia.com/budapest Seasons Wine Bistro features a superb downtown location, awaiting guests at the intersection of Király Street and Liszt Ferenc Square, with a huge terrace glaring at the Music Academy.

Owners say their goal is to introduce a real bistro that comes with ingredient-led food served in an unpretentious manner and in pleasant surroundings. They are proud of their Josper, and with good reason: everything that comes out of that grill is perfect. A wide selection of Hungary’s best artisan wines line the bar’s shelves, while live concerts play in the evenings – do check their schedule!

LA PERLE NOIRE

SPEND THE SUMMER IN STYLE on our Grand Ballroom Terrace. Enjoy live sports on the city’s most sensational screen, and while away warm evenings in our roof garden. Watch sports and movies in the comfort of our Sky Lounge, featuring everything you need for a sensational summer including: ice-cold beer, special cocktails, delicious grilled dishes and hamburgers as well as an a la carte menu from executive chef Péter Bolyki.

1063 Budapest, Andrássy út 111. • +36 1 462 2189 info@laperlenoire.hu • www.laperlenoire.hu

LARUS RESTAURANT

THE MOST ELEGANT PART OF THE CITY, the diplomatic district and Heroes’ Square, i.e.

Andrássy út that is part of UNESCO’s World Heritage, was always a place where beauty met culture. This elegant French-style restaurant fused with facets of modern gastronomy, with the only leafy terrace in the city center open from spring to late autumn, simply could not be in a better location. The wrought-iron tables and chairs shaded by huge trees are surrounded by flower beds and pots, adding color to the romantic space and perfect service, and rounded off with the unmissable live music in the evening performed by pianist József Csikós.

LOCATED IN BUDAPEST’S DISTRICT 12, embedded in the entirely renewed public square surrounded by MOM Cultural Center and the peacefully beautiful Gesztenyéskert (Chestnut Grove), Larus is a vivid place, offering a comfortable terrace during the summer, and Chef Péter Várvizi’s gourmet creations that draw upon French and Hungarian traditions at Larus, luxurious hospitality is always guaranteed.

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1124 Budapest, Csörsz utca 18/b • +36 1 799 2480 info@larusevent.hu • www.larusetterem.hu

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gastronomy FOCUS IN EGER

WINE, GASTRONOMY, CULTURE 2ND VINO TASTING FESTIVAL This festival, organized for the second time this year, invites guests on a culinary journey to discover the city of Eger, presenting more than 20 wineries from the Eger Wine Region, the best restaurants and cafés in town, in addition to a number of artisans selling handmade products from the region.

The two-day fest is hosted by the recently renovated Archbishop's Palace on Széchenyi Street – a beautiful building that reflects the central role the Church has played in the history of Eger over the past 1000 years.

Tickets (HUF 1,000 per person) include festival entrance for 2 days and free entry into the Archbishop's Palace Visitor Center.

SZÁNTÓ, VOZARY FILM, AFSTUDIO.HU,DEPOSITPHOTOS.COM

PROGRAM August 24 4PM Opening Ceremony | 5PM Tóth Eszter Acoustic | 6PM Simple Acoustic | 8PM Snidero Quartet August 25 4PM Opening Ceremony | 5PM Tóth Eszter Acoustic | 7.30PM Moór Bernadett jazz piano

MACOK BISZTRÓ 3300 Eger, Tinódi Sebestyén tér 4. • +36 36 516-180 • info@imolaudvarhaz.hu • www.imolaudvarhaz.hu

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photos by GYÖRGY

Macok Bisztró is a light-hearted place with a playful interior design, offering an extraordinary culinary experience featuring local winemakers in the historic center of Eger at the entrance to the Castle. They are serious about their food from ingredient to presentation. Their dishes recall traditional flavors but are imaginatively re-thought. When selecting the ingredients, they visited the best artisanal small producers in the area who provide the first-rate raw materials such as the trout from Szilvásvárad, the specialty cheeses from Bükk or their own homemade pasta. A real gastro experience!

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hospitality DEÁK ST. KITCHEN WINS 2018 WORLD LUXURY RESTAURANT AWARD

BEST RESTAURANT IN THE CATEGORY OF HUNGARIAN CUISINE

HILTON BUDAPEST NAMED AS HUNGARY’S LEADING HOTEL 2018

Hilton Budapest has been recognized as Hungary’s Leading Hotel at the World Travel Awards Europe 2018 – the travel industry’s renowned awards program. The 2018 Europe Gala Ceremony, which took place in Athens, Greece on June 30, saw Hilton Budapest receive one of the 19 awards won by Hilton properties, as voted by travel and tourism professionals globally.

The Ritz-Carlton, Budapest’s restaurant, Deák St. Kitchen has been selected as the best restaurant globally at the World Luxury Restaurant Awards in the category of Hungarian Cuisine. The 2018 World Luxury Restaurant Awards Gala Event took place at the Galgorm Resort & Spa on July 14 in Northern-Ireland.

Recognition as Hungary’s leading hotel highlights the hotel’s newly renovated interior, and its commitment to providing great leisure & conference facilities such as various indoor & outdoor venues, meeting rooms for diversified events, and hotel rooms with unforgettable views. Zoltán Árvai, general manager, Hilton Budapest, said, “It is an honor to have been recognized by the World Travel Awards 2018. The award is testament to the genuine passion and dedication our hotel puts into going the extra mile for our guests. Thank you to all of our amazing Team Members at Hilton Budapest who are the heart of Hilton; without them we wouldn’t have been recognized for this great achievement.” The prominent World Travel Awards, established in 1993 to acknowledge, reward and celebrate excellence in the sector, have become a key global institution of the industry, and is recognized as the ultimate hallmark of quality worldwide.

Since its opening in 2016, Deák St. Kitchen has been serving the finest Hungarian-inspired dishes as well as international comfort favorites made from locally sourced, highest quality ingredients, paired with world famous, award winning Hungarian wines. World Luxury Restaurant Awards is one of the most precious prizes in the world of gastronomy, where luxury restaurants worldwide are selected based

photos by HILTON

BUDAPEST, THE RITZ-CARLTON, BUDAPEST, CSABA PELSŐCZY, DEPOSITPHOTOS.COM

25TH EDITION OF THE WORLD TRAVEL AWARDS EUROPE

on interior design, quality of food, and excellent reviews. Guests and industry professionals are invited to participate in the voting process, taking several factors into consideration, such as culinary professionalism, brand, location, guest satisfaction and experience, outstanding atmosphere, services and menu offerings.

“We are extremely proud that Deák St. Kitchen has been nominated and awarded, for the second time, with the World Luxury Restaurant Award. Our Team is tirelessly working to create unforgettable, unique culinary experiences for our guests, and this prestigious acknowledgement is a wonderful reassurance of hard work and great motivation for the future,” said Matthew Piercy, Executive Chef of The Ritz-Carlton, Budapest.

BUDAPEST NAMED ‘SECOND-BEST CRUISE DESTINATION’ CRUISE CRITIC REVEALS WINNERS OF ANNUAL CRUISERS' CHOICE DESTINATION AWARDS

The Hungarian capital’s official tourism and festival organization company, the Budapest Festival and Tourism Center (BFTK) recently announced that cruisecritic.com magazine has presented Budapest with a Cruisers’s Choice Destination 2018 award. Cruise Critic is the leading cruise reviews site, which hosts the largest cruise community in the world.

Since its inception in 1995, Cruise Critic has earned the status of being the most influential cruise site and an innovator of consumer cruise news. Based entirely on ratings provided by cruise travelers who have written reviews on Cruise Critic, the awards highlight the best ports across the globe. In the European riverside cities category, this year Arles in Southern France came first, while second runner-up was the German city of Wurzburg. Budapest took its first runner-up place for its “astonishing beauty, especially when illuminated at night, and the memorable and informative city tours it offers.” w w w . d t e u r o p e . c o m

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