Hungary’s tourism industry is booming, evidenced by the soaring revenues from the tourist tax (IFA). The IFA, a local tax paid by tourists staying in accommodations, has consistently increased since its introduction in 2003. In 2022, the tax generated HUF 7.5 billion in Budapest alone, translating to HUF 4,500 per capita. However, the data excludes Budapest and Pest counties to avoid skewed results due to the capital’s high volume of visitors.
Analysis of 2022 data reveals that the Balaton region and the Northern Central Mountains, renowned for their wine regions, are leading the way in IFA revenue generation. The Balaton settlements, with their picturesque lake views and vibrant summer atmosphere, attract a large number of tourists, contributing significantly to the region’s economic prosperity. The Northern Central Mountains, with their charming villages, rolling hills, and world-class wineries, offer a different kind of tourist experience, attracting wine enthusiasts and nature lovers alike.
At the county level, Veszprém County, home to Lake Balaton, takes the lead in IFA revenue, with per capita tax revenue increasing significantly from HUF 360,000 in 2021 to HUF 519,000 in 2022. Zala and Somogy counties follow closely behind, while Heves County, located in Northern Hungary, stands out as the most significant contributor in the region.
The IFA, initially introduced at a rate of HUF 300 per night, has been steadily increasing over the years. In 2024, the tax rate will reach HUF 680 per night, further boosting government revenue. While the COVID-19 pandemic caused a temporary halt in the tax increase, it resumed in 2023, raising the rate from HUF 580 to HUF 680. Detailed information about the tourist tax for each settlement can be found on the Hungarian Treasury’s website.
The rising IFA revenue highlights the significant economic contribution of tourism to Hungary. The popularity of the Balaton region and the Northern Central Mountains showcases the diverse attractions and experiences that Hungary offers to tourists, attracting a wide range of visitors. As the country continues to invest in tourism infrastructure and promote its unique offerings, the tourist tax revenue is expected to continue its upward trend, further bolstering Hungary’s economic growth.
