Although the mounting problems in the Hungarian restaurant trade are well documented on this site, portal Origo has taken the time to subject the industry’s woes to a massive feature on Tuesday. In addition to the old news that Hungarians only rarely eat out (just 28% at least once a year) and eat out even less now, the second, more recent threat is the imminent hike in VAT and other taxes that some say are certain to send many a struggling restaurant to the wall.
According to the piece, the 5% rise in VAT – to 25% – will increase the prices of food and accommodation, while other tax increases like the much-feared property tax, may help raise costs by up to a third.
With the forint returning to below Ft 280 to the euro at the start of the tourism season, things look bleak indeed. On the bright side, it is still only May, too early to truly guage the impact of the recession on the Hungarian hospitality sector. But even if tourism picks up, it may not be enough, as those Hungarians with money have increasingly grown fond of taking their holidays abroad.
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