Hungary’s luxury market to recover with the help of its tourism
Hungary’s luxury market which has been one of the most affected by the current in the entire Central and Eastern European region. According to CPP‘s estimates and research, Hungary’s luxury market dropped by over 30% in 2009 compared to 2008 and the negative trend remains for the rest of 2010. A recovery is set to start seeing a growing recovery trend starting with the Christmas season of 2010.
Considered by CPP, along with Czech Republic a typical anglo saxon market which relies more than 80% on sales to visiting foreign travellers both corporate and leisure, Hungary’s luxury market is heavily dependant on its tourism. Hungarian capital of Budapest is directly competing with Prague, the Czech capital in all its luxury industry segments. The ”competition” is currently in favour of Prague which, in comparison with Budapest has, at least, twice the traffic of Asian and Middle East travellers. Prague is connected with scheduled flights to Seoul, Beijing, New York and Dubai. Middle Eastern traveller numbers are set to increase by at least 40% with the opening of EMIRATES direct scheduled flight from Dubai in July this year.
The balance, however, is in favour of Budapest when it comes to local luxury brands. Hungary is the only country in the region which has several strong local luxury positioned brands such as Herend (hand made porcelaine), Unicum (digestive), Pick Szeged (salami) as well as product categories which make Hungary famous such as hand made marzipan and hand sewn table and bed linen called ”Kalocsai”. Needless to mention, the capital city of Budapest has successfully managed to position itself as the European capital city of SPA, with its natural hot spring thermal waters with both relaxation and medical curing purposes.