The effect of SARS-CoV2 pandemic on the Hungarian accommodation sector
DOI:
https://doi.org/10.15170/MM.2021.55.03.02Keywords:
corona virus, Covid, SARS-CoV, pandemic, accommodation, tourismAbstract
THE AIM OF THE PAPER
The outbreak of the SARS-CoV2 pandemic has changed our whole life. It is particularly highlighted in tourism and accommodation service since the isolation and the governmental restrictions deprived the demand of suppliers for months. The survival of organizations depended on the principles and expectations of management and ability to finance this period. The objective of this study is to research the effect of the three waves of the pandemic on accommodation services, and to provide a recommendation on how the competitiveness can be improved.
METHODOLOGY
We have analyzed data of 252 Hungarian commercial and private accommodation based on an online questionnaire research. We have chosen players in the sample from different types, regions and groups of employees of accommodations. The data were analyzed with SPSS and MS Excel.
MOST IMPORTANT RESULTS
The utilization of accommodation decreased dramatically in 2020 due to the pandemic. The accommodations that had a high proportion of foreign guest were the most affected, while those that were still able to welcome business guest experienced decline to a lesser degree.
After September 2020 one-fifth of accommodation closed completely and the other suppliers tried to escape forwards with renovation of building or development the services. Two-thirds of actors resorted to subvention to survive this period. It is interesting that some accommodations has raised the prices because of the loss of income, while others have reduced it to encourage demand.
RECOMMENDATIONS
The suppliers of tourism needed support to compensate for the loss of income. It is necessary to segment the actors since they need various support based on type, geographical region and other variables. The subvention of wages offers support in different ways based on the number of employees. Some accommodations are more in the need of compensation of income loss based on the period before pandemic, support after the end of credit moratorium, new subventioned credit opportunities, reduction of representation tax and VAT of tickets.
