Romanian tourism will have the best financial results this year financial over the last decade. Boosted by holiday vouchers, the HORECA sector announces excellent results, going over the border of RON 15 billion, shows an analysis by the consultancy firm Frames.

The hotel industry in Romania has grown over the past 5 years with almost 40 percent, with a turnover of more than RON 5.5 billion in 2017, and estimates of 2018 developments show that the hotel sector would could reach RON 5.8 billion.

In terms of restaurants, the industry has real chances that in 2018, on the background of increased consumption, exceed the business level of RON 10 billion, more than double the recorded result five years ago, RON 4.5 billion.

Frames statistics show that HORECA’s industry has over 16,000 companies, of which almost 10,000 are in the restaurants sector. Last year, companies reported over 82,000 employees in the sector restaurants and 45,000 hotels and boarding houses.

“On the background of the significant improvement of the economic situation, but also of a efficiency of the HORECA business, the data show a significant progress in net profit compared to 2013 – from RON 380 million to RON 1 billion in the case of hotels and from RON 190 million to RON 1.6 billion in the case of restaurants,” says Adrian Negrescu, manager Frames.

BUCHAREST, HORECA CAPITAL

Capital is still the place to offer the widest palette of services in HORECA and which obviously also record the best financial performance.

According to the consulting company, Bucharest is over 30 percent of the hotel market (373 firms) and more than 40 percent of businesses restaurants (2,072 companies) and the opening of new businesses announces a significant increase in the coming years.

The capital is followed by the counties of Constanta (1,403 companies in HORECA), Cluj (768 companies), Brasov (608 companies), and Timis (696), with weights between 4 and 12 percent.

“Tourism in Bucharest has increased significantly in recent years. The development of new accommodation units and the opening of several hundreds of bars, pubs and restaurants have fallen on population growth the city and the significant advance of the number of tourists,” says Cristi Opait, manager of The Drunken Lords.

“The Old Center has become, in recent years, the main attraction of the city, but we are currently witnessing a significant advance of the city the potential of some office areas, especially Pipera, and the promenade, such as the Cismigiu area and especially the Magheru Boulevard. With the reopening of the Lido Hotel and new restaurants such as Taupe, the brasserie we are going to inaugurate in the coming days, we estimate an increase of tourists’ interest in the main boulevard in the city,” he said.

According to the latest data released by the National Institute of Statistics, arrivals in the tourist reception facilities, in the first half of the year, amounted to 3.51 million (+ 5.1 percent compared to S1 2017), most of them (76.1 percent) belonging to Romanian tourists. Also the share of foreign tourists was of 23.9 percent, close to data recorded in the first six months of the year previous.

On the segment of arrivals of foreign tourists in the reception facilities tourism, the largest share was held by those in Europe (77.7 percent of the total foreign tourists), of which 85.4 percent were from the countries belonging to the European Union.

THE EFFECT OF THE VACATION VOUCHERS

Holiday vouchers have significantly stimulated the tourism market Romanian. These days, most hoteliers report “sold-out”, many registering reservations up to 60-80 percent inclusive for September.

ANAT recently announced that between January and June 2018 were issued approximately 14 million vouchers on paper and in electronic format, which is worth about EUR 148 million, this amount being of five times higher than in 2017.

The seaside and the Prahova Valley are at the forefront, but also in Bucharest and other cities or tourist areas, the degree of accommodation is significant over the previous years.

According to Frames analysts, the launch of holiday vouchers has but also unexpected effects. Beyond the affluence of tourists and travelers the increase in accommodation rates, the restaurants sector feel great an escape of this system – that vouchers are dedicated accommodation services and can not be used independently, as well meal vouchers.

“From the discussions with the businessmen on the seaside it resulted that although the hotels are full, they eat less on the terraces and restaurants. There are many tourists who cover their meal and table services beverages exclusively from the hotel’s offer or supermarkets, and consumption in terraces, bars and clubs has dropped significantly,” says Negrescu.

QUALITY VS. QUANTITY 

2018 has brought a significant increase in service quality in HORECA. More 4-5 star hotels, all-inclusive offers, restaurants with specific, pubs with identity – from the logistics point of view, the sector of Romanian hospitality is at its best after the Revolution.

But there are still many gray areas in which, according to Frames analysts, authorities need to intervene.

“In Mamaia, for example, hotels are built on green spaces of other hotels without any visual identity, the beaches are full of stalls and other temporary buildings. The look of a Turkish fair on the Romanian seaside is becoming increasingly obvious, and the authorities are due to intervene in this segment, to enforce compliance urban planning rules. Without a strategy in this area, it will be enough it is hard to attract foreign tourists, and the Romanians to determine them to choose to spend their holiday in the country and not in Greece or Turkey,” shows the Frames analysis.

The financial data used in the analysis refers to the information official reported by companies with CAEN codes – 5510 Hotels and other similar accommodation facilities; 5520 Accommodation facilities for holidays and short-term periods; 5530 Parks for caravans, camps and camps; 5590 Other accommodation services; 5610 Restaurants, reported to the Ministry of Public Finance. For 2017, the data is provisional, and for 2018 is the company’s estimate of consultancy.

The post Record year in 2018 for Romanian tourism; Bucharest remains the Capital of HORECA appeared first on Business Review.