Holiday4All - Oliver Fodor, Hungary - Presentation
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Holiday4All - Oliver Fodor, Ministry for National Economy, Tourism and Catering Department, Tourism Development Section, Hungary - Presentation
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Holiday4All - Oliver Fodor, Hungary - Presentation
- 1. SzRC - a Good Practice from Hungary and Calypso Project - OFF2013 Holiday4All Workshop - Belgrade 11 September 2013 Mr Oliver FODOR Tourism and Catering Department Head of Section
- 2. 2 Contents • Public Administration of Tourism in Hungary • Importance of Being Open to Social Tourism • Good Practice of SzRC – a New Initiative for Boosting Domestic Tourism • Role of the MNE in CALYPSO-OFF2013 Project
- 3. 3
- 4. 4 Activities of the Tourism and Catering Department
- 5. 5 Importance of Being Open to Social Tourism I. • Social tourism benefits everyone – Beneficiary tourists: improvement of quality of life – Businesses: growth in revenues, better use of infrastructure and staff – Local people: more jobs, off-season jobs
- 6. 6 • To encourage that the broadest possible parts of the society share the benefits of tourism • Great opportunities in the increasing number of European senior tourists • Possibility for less-known, small or emerging destinations • Encouraging the extension of the tourist season • Increasing revenues from tourism • Compliance with the objectives of the European Commission Importance of Being Open to Social Tourism II.
- 7. 7 Good Practice from Hungary – Szechenyi Recreation Card (SzRC)
- 8. 8 What is SzRC? • SzRC is a type of fringe benefit which can be used for purchasing tourism-related domestic services. • The Hungarian state encourages the employers to give non- wage benefits as they can be provided to the employees under more favourable taxation conditions than salaries. • A net wage of 100 forints costs now 196 forints to the employers, while a net fringe benefit of 100 forints costs only 135.7 forints to them. • The fringe benefit system can provide additional resources to important social and economic policy objectives, as all the benefits are earmarked.
- 9. 9 Paper based voucher Only one issuer High commission (10-12%) Bureaucratic administrative processes Not well defined use Secondary market Unregulated market Modern plastic card Liberalised market Relatively low commission (1,5%) Less administration Targeted use Transparent Detailed regulation (law and government decree) The Previous System (Holiday Voucher) and SzRC
- 10. 10 One Plastic Card with Three Sub-Accounts Accommodation EUR 750 Catering EUR 500 Leisure EUR 250
- 11. 11 Accommodation sub-account Catering sub-account Leisure sub-account All types of accommodation services Spa and thermal bath tickets Domestic travel package Restaurants and canteens Cultural services: e.g. festival, concert, theatre, museum tickets Sport services: fitness center, swimming pool, ski resort ticket, rental of sports equipment Amusement park and zoo tickets Certain types of health care services etc. +
- 12. 12 The System of SzRC and It’s Results Until 31 July 2013 EMPLOYER ISSUER EMPLOYEE SERVICE PROVIDER cash voucher service Employers: 21 897 Employees: 858 114 Service providers: 49 049 Amount transferred to SzRC Cards in 2013: 153 m EUR Amount spent from SzRC Cards in 2013: 129 m EUR
- 13. 13 OFF2013 A Hungarian – Polish Partnership under Calypso
- 14. 14 Role of the Ministry for National Economy in CALYPSO – OFF2013 • Governmental partner of HNRF • Professional contribution to the success of the project • Encouraging public-private cooperation • Promoting the participation of DMO-s, local governments
- 15. 15 Purposes of the Ministry’s Participation in CALYPSO – OFF2013 • Strengthen international relations • To provide an opportunity for all Hungarian destinations • To assist in the realization and sustainability of the project (study → join to STEEP/create other reservation site → develop tourist flow between Hungary and Poland) • To provide best practice for further projects on social tourism • The most effective use of EU funds
- 16. 16 Tourism and Catering Department Tourism and Catering Department Mr. Oliver FODOR Mr. Oliver FODOR Head of Section Head of Section Email: Email: oliver.fodor@ngm.gov.hu oliver.fodor@ngm.gov.hu Thank you for your attention!
Editor's Notes
- Within the Deputy State Secretary for Tourism the Tourism and Catering Department’s main responsibilities are the following: - elaborating development strategy for tourism, - preparing legal framework for tourism, - maintaining international relations on governmental level (EU, UNWTO, OECD, Visegrad countries, CEI, bilateral and multilateral co-operations), - providing conceptual framework for the SZEP Card system, - management and development of national trademark system (also ownership except in case of hotels).
- Why is it important to be open to social tourism? On the one hand social tourism benefits everyone.
- A new fringe benefit system has been introduced at the beginning of 2012 which is designed to stimulate domestic tourism in Hungary. SZRC is a non-wage benefit that can be provided by companies to their employees besides their salary with a discounted tax rate.
- In 2010, the government decided to introduce a more modern, electronic card-based system instead of paper-based vouchers. The name of the new electronic card is Széchenyi Recreation Card (SzRC). The legal basis of the Hungarian fringe benefit system is the Law on Personal Income Tax, which defines the items of benefits, the basic conditions of their use, and the associated tax rules. Detailed rules for the issuance and use of SzRC are determined by a government decree. It contributes to the reduction of black economy, as the electronic transactions can be tracked better than the circulation of paper-based vouchers. As the operational costs are low, no need to ask high commission from the service providers. Only 1.5% commission is to be paid by the service providers after transactions. SzRCs are issued by market participants (at the moment by three bank-owned company groups), thus the operation of the system does not cost anything to the state. The decree specifies the conditions under which the issuers are required to be compliant.
- It is a convenient card with three sub accounts for the different purposes. The maximum amount is 1500 EUR annually to give with discounted tax rate, from which 750 EUR can be used for accommodation services, 500 for catering and 250 EUR for leisure services. One of the advantages of the system is the relatively low commission leve l, set at 1.5% which is to be paid by the service providers after the transactions.
- Until the end of July 2013 almost 21 900 companies gave this benefit to their employees and more than 850 thousand cards have been issued. The amount that has been transferred to SzRCs until the end of 2012 was EUR 240 million and the amount spent from SzRC cards was EUR 147 million. If we sum up this with the figures for the first half 2013, we can see that in total (since the issuance of the first card in 2011 July) almost 400 million EUR have been transferred to SZRC cards and 276 million EUR have already been spent on domestic tourism related services.
- As the governmental partner it has a broad overview on the on-going national and European initiatives to which the project may connect; it fosters networking with both the demand and the supply side; through its diplomatic relations it facilitates the contact with the Polish government; it has knowledge on the existing exploitable national structures and mechanisms that the project could benefit from. NGM által vállalt feladatok: • az OFF2013 projekt keretében szervezett nemzeti szintű és nemzetek közötti egyeztetéseken való részvétel, • a 3 magyar-lengyel workshopon való részvétel, • a szakmai tanulmányok elkészítésében való közreműködés.