In Budapest’s party district, more and more establishments have to be closed down. In the last five years, almost 3,000 pubs and restaurants went out of business. On the other hand, the number of confectioneries seems to be increasing.
Blokkk revealed that one of the contributing factors is the labour shortage in Hungary. It is a well-known fact that many waiters and chefs go abroad to earn more money. In the beginning of the season at Lake Balaton, it is a returning problem that there are a lot of guests but not enough qualified workers to serve them.
Even though restaurant owners now have reduced VAT rates – 5% instead of the old 27% – on the foods and beverages prepared and served on the spot, the situation is still dire. It is true that the crowds increased, but the prices also went up. Despite the reduced VAT rates, the number of restaurants decreased overall in the past five years.
In five years, 2,787 restaurants closed down. However, the number of confectioneries seems to be ever-increasing, showing a 16%-growth.
The problem is present in Budapest’s party district, too (roughly meaning districts 5, 6 and 7 in the capital). In districts 5 and 6, there were fewer establishments available in 2018 than in 2014. In district 7, there was a slight growth, but 2018 also showed signs of decline. The situation at Lake Balaton is slightly different because there is only one high season. In some places, the number of restaurants increased, while in others, quite the opposite happened.
Interestingly, Velence and Szeged are both holding up nicely, while other big cities in the countryside such as Sopron or Eger are also showing signs of decline.
Even though the number of guests in restaurants is growing, more and more establishments close down. This, of course, varies from location to location. According to data from 2016, in Budapest, for example, there were over 11,000 pubs and restaurants, which is almost 10% higher than a few years before. On the other hand, in the eastern part of the country, the number of establishments was decreasing.
Locals of Budapest’s party district feel as if they live in a public restroom
Photo: Pixabay (illustration)
Why you use dirty Berlin street picture to the article??