In 2022, the Central and Eastern European (CEE) region, including Budapest, experienced significant economic challenges due to geopolitical tensions and lingering impacts of the pandemic. Soaring inflation, a sharp rise in energy prices, and a labour shortage were major issues. Producer/input costs in the EU surged by 37% in May 2022, a record high. The EUR/HUF exchange rate hit an all-time high of 427 HUF/EUR, significantly impacting operational costs. Our outlook is carefully optimistic, as against all odds, we believe Budapest will continue to be a magnet for city breakers and sport enthusiasts in 2023 as well, as the city is preparing to host the 19th edition of the World Athletics Championship.

The global crisis caused by the COVID-19 pandemic has drastically altered the tourism industry worldwide, and Ukraine is no exception. Tourism, a crucial economic sector, has been significantly affected due to severe restrictions on cross-border travel. The Ukrainian hotel and aviation industries are struggling to survive by minimizing costs and capitalizing on domestic demand. The Ukrainian Association of Hotels and Resorts (UHRA), along with international tourism experts from Horwath HTL, conducted a survey to provide an overview of how stakeholders perceive the challenges brought about by the pandemic.

Our latest market report on Baku, Azerbaijan, provides an insightful overview of the city’s evolving tourism and hospitality landscape. Baku, the largest city in the South Caucasus, is capitalizing on its unique geographic location and cultural heritage to become a significant tourism destination. Baku has more than its nine ‘climate zones’ and oil industry to boast about. Hotel development is booming as the market begins to appreciate the economic upside offered by tourism. The diversification of hotel products attracts leisure travellers to the country, extends the booking period and minimises the reliance on corporate travel.