Travel Reference
In-Depth Information
and Poland have the highest latent potential
for tourism growth among the new EU member
states. The prospective additional travel and
tourism resulting from structural changes to
Hungary's economy following EU accession is
estimated at an additional US$22.8bn in GDP
and 901,000 jobs. As a direct positive impact
of EU accession, Hungary's image among EU
members is expected to improve, leading to an
increase in the number of visitors from both old
and new member countries. This is particularly
notable because EU nationals generally per-
ceive other EU destinations as posing less risk,
particularly in relation to laws, standards and
access to health services (Blake, Sinclair and
Sugiyarto, 2003).
During the preparation period for EU
accession, Hungary received European aid
within the framework of the Phare programme.
Between 1995-2003, Phare CBC programmes
contributed
€
135m to the establishment of
cross-border cooperation projects in the fields of
tourism, infrastructure and transport develop-
ment, human resources and environmental pro-
tection (VÁTI, 2003). As a result of the latest
regional development Phare programme for the
period of 2002-2003, a total of
€
54.12m EU
funds were allocated to projects that included:
conference tourism development, rural tourism
training, spa and health tourism development,
transformation of heritage buildings into tourism
facilities and urban rehabilitation (VÁTI, 2005).
By joining the EU, Hungary has obtained
the right to benefit from the Community's Struc-
tural Funds which aim to support less devel-
oped regions in order to achieve economic and
social cohesion between the different member
states. Although the key objectives of the Struc-
tural Funds do not include the development of
tourism explicitly, the tourism industry and tour-
ism destinations may become direct or indirect
beneficiaries of all the objectives (adjustment and
development of regions where GDP per capita
is less than 75% of EU average (European Com-
mission, 2004); development of areas undergoing
industrial conversion; economic diversification of
rural areas; reduction of long-term unemploy-
ment and vocational training for young people).
In addition to the Structural Funds, Hungary
also receives aid from the EU's Cohesion Fund
for infrastructural development in the fields of
environment and transportation. The country's
participation in Community Initiatives such as
INTERREG and Equal may also assist cross-
border and inter-regional tourism cooperation,
and the development of human resources in the
tourism industry, respectively.
Altogether, as the whole territory of Hungary
belongs to the Objective 1 area, during 2004-2006
the country will receive
€
3.21bn structural aid
from the EU (European Commission, 2004).
However, in this period, EU experts estimate
that Hungary will only absorb 30% of funding
at most. Specific programmes supported by the
Structural Funds include the encouragement
of a more diverse rural development and the
growth of complementary activities such as rural
tourism, as well as the exploitation of natural
and cultural heritage resources in the least
favoured regions through the development of
tourism services.
The Immediate Consequences of EU
Accession for Hungarian Tourism
Following EU enlargement, Hungary borders
four non-EU nations and accounts for 15%
of the EU's external land border. In order to
comply with the far more stringent EU border
control regulations, Hungary spent
€
40m to
strengthen its eastern and southern borders
over the decade prior to accession. Another
€
150m EU funding is expected in the following
years to further improve border infrastructure,
equipment and information technology and to
organize training to enable Hungary to join the
Schengen Treaty (NFH, 2005). However, the fact
that Hungary's frontiers coincide with the exter-
nal frontiers of the EU, at least until the next
enlargement, unfavourably affects VFR tourism
from the country's eastern and southern neigh-
bours, as Hungarian minority members living in
Ukraine, Romania, Croatia and Serbia are now
subject to more stringent visa requirements.
One of the major direct impacts of EU
accession is the growing number of budget air-
lines entering the Hungarian market. As the
new member states are becoming more popular
among European customers, accessibility to
Central Europe is a key to international success,
both for destinations and for airlines. Changes
in the regulatory environment following EU
