HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU
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BUSINESS JOURNAL BUDAPEST
VOL. 25. NUMBER 22
DECEMBER 1 – DECEMBER 14, 2017
SPECIAL REPORT
Christmas Shopping SPECIAL REPORT
Christmas Markets Boost Budapest Brand Interest in visiting the Hungarian capital from abroad has never been greater, and it seems the city’s everimproving Christmas markets are adding to the appeal. 18
SPECIAL REPORT
Uniquely Hungarian premium products known as hungarikums sell exceptionally well at Budapest Airport, thanks to coordinated promotion campaigns and the quality offered, the airport says. 16
SOCIALITE
Szent Mikulás and the Bright Side of Being ill in Hungary David Holzer is introduced to yet another little-explored aspect of Hungarian cultural life: the rituals of being sick. Will he recover in time for Mikulás? 20
Promoting Girl Power NEWS
16+1: A sum That Makes for Great Business Potential Government heads from most of the region came together in Budapest for the ChinaCEE Countries 16+1 Summit to discuss trade and financial matters. 4
BUSINESS
N ES BUSI
S
Amrita Gangotra, Vodafone Hungary's technology director, talks about the ideal size of the Hungarian market, and the urgent need to get girls studying STEM subjects.8
Hungarian SMEs Export shy, Survey Reveals In contrast to the headline-catching achievements of companies such as Prezi, the bulk of Hungarian SMEs are unwilling or unable to undertake export sales, a recent study reveals. 6
Photo: BBJ/Árpád Pintér
Air Passengers Grabbing Ever More Hungarikums
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CHINESE WHISPERS AND THE ADDED VALUE OF MNCS It seems too easy a literary device to introduce the Chinese curse of “May you live in interesting times” in the week the Chinese premier paid a visit to Hungary. In any case, it doesn’t feel like it holds water right now. These are, indeed, interesting times. But that does not necessarily have to be a curse. (Granted, the continued development of nuclear weapons and intercontinental ballistic delivery devices by China’s problematic neighbor North Korea should give us all pause for thought, but it seems an everpresent part of the human condition that there is someone, somewhere with the ability to give us all sleepless nights.) China herself can be a somewhat problematic partner in the eyes of Western liberals. In no particular order, the treatment of dissidents, ethnic and religious minorities, prisoners and Tibet are all almost routinely raised as fundamental human rights concerns by bodies such as Amnesty International and Human Rights Watch. But then again, the Fidesz-led government of Hungary does not have much time for Western liberal eyes, or ideals. The same could be said for much of the rest of the region. As Minister of Foreign Affairs and Trade Péter Szijjártó confidently declared in his opening speech at the ChinaCentral and Eastern European Countries 16+1 summit in Budapest on Monday: “There are no open or pending items between our two regions.” And then again, why should anyone decry CEE attempts to secure alternative financing from China? That’s exactly what the United Kingdom is doing with its Hinkley Point C nuclear power station project, the construction costs of which are currently due to be paid for by the largely state-owned EDF of France and the entirely state-owned China General Nuclear Power Group.
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As is usually the case with such grand events, many of the projects heralded at the summit have already been widely trailed. The tender for the upgrade of the Hungarian section of the Budapest-Belgrade railway project was announced, for example, but we had first been told that would happen back in October. The project itself has been talked about for years. Chinese news agency Xinhua carried a story back in July 2015 that work could get under way “before the end of the year”. The visit of 16 heads of government at one time, the road closures and the ensuing traffic chaos have certainly had their own impact. On Wednesday morning, the last official day of the Chinese visit, there were uniformed police foot patrols at every intersection and bridge as the M3 motorway headed in to Budapest. By the time you got to Hősök tere (where soldiers in ceremonial dress waited for a wreath laying ceremony at the Tomb of the Unknown Soldier) and headed down Andrássy út, they were so thick on the ground you could have been forgiven for wondering whether there were any police officers anywhere else in Budapest. And amid all this hubbub, you may have missed some of the smaller, but no less interesting pieces of news. The government has often given the impression of wanting to favor home-grown companies over the multinational players. (It has plenty of strategic agreements with MNCs, but these tend to be in fields where there is little local competition.) But a report by economic news portal Portfolio. hu, based on official Central Statistical Office data, suggests those MNCs are not only much more efficient (and responsible for employing 26% of all employees in Hungary), but also bring far more added value to the country (a total of HUF 9 trillion in 2015). So, they are not all bad then!
The “Christmas tree of the country” being set up in front of the imposing building of Parliament on November 24. The more than 20-meter (65.6 feet) pine needed stabilizing by firefighters to ensure it remains secure over the festive period. In the black and white picture, police officers and their families celebrate Christmas with fresh bread in 1920 around a somewhat smaller tree.
MTI / Zoltán Máthé
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Budapest Business Journal | December 1 – December 14, 2017
News
///macroscope
The National Bank of Hungary (MNB) kept its base rate on hold at 0.9% and hasn’t changed its overnight deposit or lending rates either. However, it has announced two new unconventional monetary policy tools, a move that was expected by the market, although no one was sure about the timing. ZSÓFIA CZIFRA
The central bank’s Monetary Policy Council (MPC) introduced two nonconventional monetary policy tools at its latest rate setting meeting at the end of November, while keeping the base rate at its record low of 0.9%. It has now been unchanged since May, 2016. The MNB still believes that loose monetary conditions can be maintained, with inflation not being unleashed either. According to the policy council’s reasoning, Hungary’s economic growth will pick up over the forecast horizon. Some degree of unused capacity has remained in the economy, but this is likely to be gradually absorbed as output grows dynamically, the MPC wrote in its explanation of the move, emphasizing that the inflation target is expected to be achieved in a sustainable manner by mid2019. The statement also said that the base rate and loose monetary conditions will need to be maintained for an extended period to achieve this. The statement, published on the MNB’s website, also notes that the stimulating measures of the central bank and the government continue to contribute
MTI Photo: Tamás Kovács
More Unconventional Tools to Boost Sustainable Lending
György Matolcsy, Governor of the National Bank of Hungary, speaks at the opening of the two-day financial summit of the Asian Financial Cooperation Association at the Hungarian National Bank on 28 November 2017. substantially to the country’s economic growth. The MNB expects annual economic growth of 3.6% this year and stable growth of between
3-4% over
the coming years.
Long end of the Curve
Of the two new tools to be introduced, the statement claims that the MPC considers it important that the loose monetary conditions have their effect not only at the short end of the yield curve, but also at its longer end. The new measures aim to ensure this, and will be deployed at the beginning of next year. One of the tools will be an unconditional five- and ten-year interest rate swap (IRS) instrument, with a limit amount of
HUF 300 billion for
the first quarter of 2018. In addition, the MNB will launch a targeted program aimed at purchasing mortgage bonds with maturities of three years or more. Both programs will contribute to an increase in the share of loans with long periods of fixed interest rates. The MNB will make a decision on the operational details of the programs in December 2017. The council closed it statement by adding that it will closely monitor developments in monetary conditions and will ensure the persistence of loose monetary conditions over a prolonged period by using the extended set of monetary policy instruments. At a press conference held after the ratesetting meeting, MNB deputy governor Márton Nagy said that the MNB will
soon hold a meeting with representatives of commercial banks to discuss the conditions for introducing its new unconventional tools. According to Nagy,
“Further details of these measures will only be provided in December, but the big picture is that moves to loosen policy are at odds with mounting evidence that economic slack is diminishing rapidly. There is a growing risk of a destabilizing build-up in macroeconomic imbalances and/or a sharp rise in inflation over a two-tothree-year horizon,” the tools are not for promoting increased lending but for lowering yields and improving the quality of bank loans.
Consensus
The MPC decision was in line with the Bloomberg consensus, however Erste Bank analyst Orsolya Nyeste said it “under delivered compared to our projection, as we penciled in a 5-10bp O/N depo rate reduction”. She continued: “In its statement, published an hour later, the MPC preserved its dovish
stance, emphasizing again that risks to inflation are tilted to the downside. They also added that the monetary policy of the ECB [European Central Bank] could remain accommodative, according to the council’s expectations. Despite the fact that long-term yields have already declined, the Hungarian yield curve remained steep in international comparison, according to council members. As the council would like to see longer-term yields at more depressed levels as well, they announced two unconventional monetary instruments in their statement,” Nyeste said. “The above announcements were in line with our view, as we had expected targeted monetary policy measures to be delivered in the last two months of 2017. As a result of continuous policy easing, we stick to our forecasts that short-term money market rates will arrive in negative territory, while – in line with the MNB’s intentions – longterm bond yields could further decline, and the ten-year bond could drop to 2% and could remain at this level in FY2018. Currently, we see low probability of rates normalizing before 2020,” she added. Liam Carson, at Capital Economics of London, seemed less impressed. “The Hungarian MPC left both its three-month and overnight deposit rates on hold today but the council announced unconventional measures to ease policy, including interest rate swaps and a mortgage bond purchase program,” he noted. “Further details of these measures will only be provided in December, but the big picture is that moves to loosen policy are at odds with mounting evidence that economic slack is diminishing rapidly. There is a growing risk of a destabilizing build-up in macroeconomic imbalances and/or a sharp rise in inflation over a twoto-three-year horizon,” Carson explained. “Headline inflation will remain below the bank’s target over the rest of this year, but we then expect it to rise above target in early2018. Our central view is that the MPC will reverse course next year and tighten policy. But a change in tack is looking increasingly unlikely and there’s a growing risk that policy is kept too loose for too long. That could result in growing macroeconomic balances, a possible inflation shock and a nasty adjustment at some point further down the road,” the London-based analyst added.
Numbers to Watch The second estimate of GDP will be released on December 5, followed by the first readings on the performance of Hungary’s industry the next day. A full-year review of the agriculture sector will be published on December 11. A few days later, the statistics office will issue construction sector figures for October.
4 | 1 News
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Budapest Business Journal | December 1 – December 14, 2017
Government heads from most of the region came together in Budapest on Monday for the ChinaCentral and Eastern European Countries 16+1 Summit to discuss trade and financial matters. They were joined by an estimated 1,700 business people and politicians for a daylong economic, trade and financial forum at the Papp László Budapest Sportaréna. Organized by the Hungarian National Trading House, the Hungarian Investment Promotion Agency (HIPA), the Ministry of Foreign Affairs and Trade, and Exim Bank, supported by the Bank of China, the summit also featured B2B matchmaking meetings and a number of parallel panel discussions. These included agriculture and environmental technology, SMEs, and finance. The E-commerce, Logistics and
MTI Photo: Tamás Kovács.
16+1: A sum That Makes for Great Business Potential
Chinese premier Li Keqiang. Customs panel was moderated by Budapest Business Journal editor-in-chief Robin Marshall. The summit, now in its sixth year and having toured around the region, was described by several speakers as a “win-win” scenario; China is looking for new business and investment opportunities, while the
16 CEE
countries (eleven of them EU members, the other five candidate states) hope to become a foothold for Chinese expansion into Western Europe. Highlights around the summit included Hungary publishing a procurement tender for modernizing the rail link with Serbia’s capital Belgrade in order to bring Chinese
goods into Western Europe. The upgrade is being 85% financed with a 20-year loan from Exim Bank of China, with Hungary paying an annual interest rate of 2.5%, the government has said. In Hungary, the project will upgrade the 152 km of railway line stretching between Soroksár, on the outskirts of Budapest, and Kelebia, on the Serbian border. Construction of the Hungarian stretch, estimated by the state at HUF 550 billion (though hvg.hu. has reported that this has increased to HUF 750 bln since last year), is expected to start in late 2020.
Unique Project
In his keynote speech, Hungarian Prime Minister Viktor Orbán described the
infrastructure project as unique, in that it is the first time China has partnered with an EU member and an EU candidate. But the plan, and other deals announced, make economic sense for all parties, he argued. “We 16 are the region of Europe that is also the engine of economic growth in Europe,” he told delegates. “The 16 of us have always been open and would like to remain so. We look at Chinese cooperation as a huge opportunity.” He added that the days when European finance, knowhow and technology were exported to China were long since gone. “The situation has changed; a new star of the East is up high. Asia, China included, is on the rise.” This was a new period of globalization “where the world is no longer divided into teachers and pupils, but is instead based on mutual trust and opportunities.” The Hungarian prime minister was due to sign 11 bilateral agreements with China on Tuesday (November 28). Other participating countries and businesses from the region and China signed dozens more; there were 13 alone signed at the E-commerce, Logistics and Customs panel. Other deals signed at the summit included a USD 500 million credit line from the Exim Bank of China to its Hungarian counterpart to finance lending. Hungary has also decided to join the China-Central and Eastern Europe Investment Cooperation Fund, a private equity fund organized by the Export-Import Bank of China, with a EUR 50 mln contribution, according to Hungarian state news agency MTI.
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Váci Corridor Office Developments Still Preeminent The Váci corridor is the most favored area for office development in Budapest with 900,000 sqm or around 30% of the total Budapest office stock according to JLL, making it the most attractive Budapest office sub-market for developers. GARY J. MORRELL
The dominance of this one area is expected to continue as GTC, Atenor, Horizon Development, Futureal, HB Reavis, Skanska, CPI and Wing are all successfully developing, letting and selling office projects onto investors. More than 150,000 sqm of office space is scheduled to be handed over in the Váci sub-market in the next one-anda-half years according to Eston International. The next scheduled delivery is the
21,500 sqm White House
by the CEE developer and investor GTC, where BlackRock has leased three floors. The LEED “Gold” accredited center is scheduled for delivery at the beginning of next year. Atenor, meanwhile, is set to complete the 15,500 sqm Building D (fourth phase) of its phased Váci Greens office project. Atenor has sold the project to a private Hungarian investor. Buildings E and F at the complex are due to commence in 2018-2019 and will deliver a further 50,000 sqm of speculative space between them. Upon completion, Váci Greens will consist of six buildings boasting around 130,000 sqm of office space. Also in the pipeline for next year, Horizon Development is developing the
25,000 sqm Promenade Gardens on Váci út in partnership with the Hungarian Erste Open-ended RE Fund. The speculative project, which is both LEED “Gold” and BREEAM “Very Good” accredited, is due to be complete in the second quarter of 2018.
Becoming More Expensive
Also in Q2 of next year, Hungarian developer Futureal is scheduled to deliver the speculative 12,000 sqm Advance Tower 1 with 12,000 sqm of BREEAM and WELL accredited space. The 7,500 sqm second phase of the project is planned for the end of 2019. “The complex is 70% prelet and high demand is continuing in the area, although land plots are becoming more expensive,” said Gábor Futó, chairman of Futureal. CPI has undertaken development of phases three and four of the BREEAM “Very Good” accredited Balance Office Park at Váci út 99, representing 15,700 sqm and 10,500 sqm. Having already developed and sold on one Váci corridor office project to investors, Wing is now redeveloping a building into Skylight City that will deliver another 20,000 sqm of BREEAM accredited space in the spring.
Váci Greens Building C by Atenor. Further along the development horizon, HB Reavis is constructing the phased Agora Budapest project that will eventually consist of five office buildings distributed around three public squares. The first speculative phase of the development, Agora Hub and Agora Tower will deliver around 68,000 sqm of office and retail and service space and is scheduled to be completed by the
first half of
2019.
HB Reavis emphasizes the provision of services and retail that has previously been lacking in the area for the local population. The Váci corridor is widely seen as a template for the redevelopment of a former industrial area into a business center that has attracted major developers and companies, supported by the pro-active policies of the local District XIII municipality.
Váci út provides excellent public transport links with many office developments being constructed in
“High demand is continuing in the area, although land plots are becoming more expensive.” locations adjacent to metro stations. However, one critique of the area is that the major road running through it is a dual-carriage way, rather than a boulevard. Despite that, developers are confident of letting their products, with phased projects going ahead in line with market demand.
Investment Climate Continues to Improve The investment climate and development fundamentals are positive for Hungary, with investment volume for 2017 predicted to approach EUR 2 billion, according to Pál Dános, director of KPMG Hungary, speaking at the Portfolio Property Investment Forum 2017. GARY J. MORRELL
KPMG put prime office yields at 6.25%, prime high street retail at 5.5% and logistics at 8% and further yield compression is expected in the coming year by many property professionals. With regard to financing, LTV (loan-to-value) and LTC (loan-to-cost) ratios have
risen to
74%.
The mood among the 350 attendees at the InterContinental Budapest was
generally positive concerning investment and property fundamentals across the various real estate sectors; increasing development is expected to be absorbed by growing market demand. However, the need for higher rents was expressed by several speakers and panelists to offset rising labor and construction costs. The shortage of skilled labor is seen as a brake on development markets and, in turn, acts as a barrier to investment growth. That said, a wider diversity of investors, including major domestic funds, are seen as providing long-term security for the market.
Significant Breakthrough The acquisition of Aréna Plaza for EUR 275 million by the South African NEPI Rockcastle (see South African Fund Purchases Aréna Plaza in the October 6 issue) has been touted as a significant breakthrough for the Hungarian investment market as proof of the growing diversity of investors that are now active in the Hungarian market and therefore increasing liquidity, though the market could certainly do with more similar sized deals. It has developed from being dominated by Austrian and German funds to a wider pool of investors that includes the likes of domestic Hungarian and now also South African investment funds. The re-emerging Hungarian market is said to be in a similar position to ten years ago with regard to transaction volume. “The investment market needs more transactions of EUR 150 million plus in order for the market to develop,” said Mike Edwards, head of investment at Cushman & Wakefield Hungary. According to KPMG, real estate practices need to adapt to changing needs,
a bench work of services is required and city development needs to concentrate on the needs of citizens. A further concern is the lack of a functioning commercial property development market outside of the capital. “Investors and financers have a positive view of the Hungarian market as all sectors are attracting investors with positive market fundamentals. Things can change very quickly, as not so longago investors were reluctant to come to Hungary,” concluded Noah Steinberg, CEO-chairman of Wing.
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Business
SMEs can Export – With the Right Products, Dedication and Preparation
Hungarian SMEs Export shy, Survey Reveals
“The basis of [an export drive] must be a competitive product or a competitive service, and this must be based on hard work… and it should be unique, sophisticated, hi-tech and it should take years to copy it,” he told the Budapest Business Journal .
Four-fifths of small businesses stick to the domestic market, Budapest Bank finds.
Many Hungarian companies have good ideas, but the final product is often not unique and is relatively easy to copy. “There may be need for it, but if other companies see it is useful, then many, many competitors will pop up, very quickly,” he said.
KESTER EDDY
In contrast to the headline-catching achievements of companies such as Prezi, which has chalked up global success with its presentation software, the bulk of Hungarian small- and medium-size enterprises (SMEs) are unwilling or unable to undertake export sales, a recent study reveals. Only one-in-five such companies report export sales, and a mere 4% declared an interest in doing so during the next three years, according to a survey, carried out for Budapest Bank on 500 Hungarian SMEs and micro-businesses with annual revenues of up to HUF 10 billion (USD 38.5 million), published on November 20. Perhaps even more shocking, 77% of respondent companies,
that is
385
of the 500 sampled, excluded the possibility of seeking out export sales in the same time period. “This is despite the fact that export sales can give a major boost to sales: for companies already pursuing export activities, approximately one-fourth of the total sales is derived from exports,” the bank said in commentary on the results.
Unsuitable or too Small
The primary reason justifying the lack of effort to probe foreign markets – mentioned
György Bőgel, professor of entrepreneurship at CEU.
Bernadett Engler Dancsné of Budapest Bank’s small enterprises business line.
“Our experience shows that the majority of companies decide not to launch export activities because they lack the necessary skills, and therefore have a lack of confidence.” by 57% of respondents – is that their products and services are unsuitable for export. A further 27% said their company was too small. Yet the reluctance appears even more deep-seated. As the bank commented: “Two-thirds of the managers of companies with no export sales experience stated that even if they managed to overcome the current obstacles, they would not start selling abroad.”
THE REASON BEHIND LAUNCHING EXPORT ACTIVITIES We wanted to increase the company’s profitability
62%
We were contacted by a foreign company
39%
There was a demand for our products/ services primarily abroad
18%
The domestic market was too limited Other
The thoughts of large, lucrative export orders to customers outside Hungary may sound attractive to local entrepreneurs, but even those with language skills and some experience in foreign lands need to maintain a sense of realism, says Bőgel.
14% 2%
This is in spite of 56% of those surveyed viewing foreign competitors appearing on the domestic market as a commercial threat. Perhaps surprisingly,
only
3%
expressed concerns about being paid properly by foreign customers, and a mere 1% cited a lack of foreign language skills as a barrier. The implications of such results are, of course, that Hungarian SMEs are ignoring potential markets and risking commercial oblivion in the face of foreign competition.
Lacking Skills
“Our experience shows that the majority of companies decide not to launch export activities because they lack the necessary skills, and therefore have a lack of confidence,” says Bernadett Engler Dancsné, head of Budapest Bank’s small enterprises business line. The results of “more daring” companies that do export reveal that “even the smallest can benefit from extending their sales activities abroad”, she argues. The survey results imply an SME sector imbued with widespread smug satisfaction with domestic sales at best, or gross (and commercially dangerous) lethargy at worst. But are such conclusions fair? Respondents include anything from engineering firms to key cutters, smallholder agriculturalists to large-scale factory farms. Is it reasonable, or realistic, to expect a bakery in Kecskemét to pursue exports? “There are local companies everywhere in huge numbers, local companies which do not have any global growth potential,” says György Bőgel, professor of entrepreneurship at the Central European University in Budapest. However, in the broadest sense, Bőgel supports the bank’s findings. “My general experience is the same: many small companies in Hungary are only working in the local market, and many of them do not want to go abroad,” he says. “We can call it a glass ceiling for companies; when they reach the borders of Hungary, they stop.”
Bőgel believes “the core reason” for poor export performance among many Hungarian SMEs is “the weakness of innovation in Hungary”, pointing to the 2017 European Innovation Scoreboard, which ranked Hungary in 23rd place among EU countries with a score of 67.4, versus an EU average of 100. “Innovation, I think, is improving, but our relative position is not improving, because the development of other countries is faster than ours,” he says. Lacking the right products, services, language skills and connections, pioneering sales abroad can be an expensive business, especially if this involves setting up offices and servicing centers for products. Bőgel also lamented that “many times” he sees Hungarian companies, even those with good ideas, are unable or unwilling to commercialize them, and sit back, satisfied with success on the domestic market. Despite such issues, a number of flagship companies have won out on the global markets, proving that with the right products, dedication and preparation, SMEs can win international success. “For example, Nav N Go [now renamed NNG, a navigation systems provider]: it’s a positive example. It’s a global success, a very sophisticated, competitive product. And it is what you need if you want to go abroad. Otherwise, you may compete on costs… which is unsustainable longterm,” he says. Even in traditional industries, Hungarian SMEs can forge export markets for themselves, Bőgel insists, citing Master Good Kft., a poultry company located in Kisvárda, northeast Hungary. “It’s one of the biggest chicken processing companies [in the region], It’s family-owned, absolutely hi-tech, and nobody knows the name,” he says, “but they have [significant] exports.”
THere IS no plAce lIKe KéKeS! Situated in the north of Hungary is the Mátra mountain range with a long-standing tradition in tourism, attracting visitors with its ridges, providing breathtaking views, romantic gorges and pure mountain air all year round. In addition to the various hiking trails, natural springs and spas, this is the highest peak of Hungary, Kékestető is found here.
But life never comes to a halt on Kékestető, the hustle and bustle just never stops: the highest peak of Hungary is a popular venue for hiking, cycling and running competitions as well as other sports events. As part of the Blue Trail, it is a favourite destination for trekkers all year round. The sunshine hours in September and October as well as from January to March are record high: the place is perfect for oneday hikes as well as for the afternoon constitutional.
Kékestető is on the legendary Blue Trail, and has been an official climate therapy resort since 1963. Due to its modern infrastructure, it has become a popular hiking destination for local families, offering excellent programs throughout the year for those who are after crystal clear air and calm, who want to wind down, go hiking or need some challenge. The highest peak of our country is loved by tourists for its magnificent scenery in summer and its ski slopes in winter.
The Advent on Kékes is the opening community event of Gyöngyös the period preceding Christmas festivities. The celebration organized on the highest plateau of Hungary, welcomes visitors with handicraft fair, concerts, mulled wine of Mátra, as well as other dishes and drinks on Angyalok Tisztása (the Clearing of Angels). The high point of the day is the lighting of the bonfire symbolising the first candle of the Advent wreath. At the end of the day Advent festivities continue in Belváros square, where an intimate atmosphere and interesting programs welcome anyone taking an interest in them.
Healing Body and Soul
Active leisure pursuits for all seasons The inherent potential of Mátra was recognized and tapped as early as the first part of the twentieth century by local residents. This was the time when the majority of the medical centres were built, and at the same time the mountain became a popular destination for nature-lovers. Skiers discovered the slopes fit for skiing around the peaks of Kékes and Galyatető in the 1920s and 1930s. Ever since then the highest peak of the country has provided the venue for major national as well as international downhill competitions. One of the longest (1.8 km) pistes of the country was built on Kékestető in the early 30s. The southern slope begins at the stone marking the 1014 m summit on the hilltop, and ends at Veronika meadow just above Mátraháza. Due to the fact that it is not too steep, the slope is perfect for beginners who are just getting acquainted with the sport as well as families with small children to practise. After skiing down from the slope, skiers can take the shuttle bus from Veronika meadow back to Kékestető, where in addition to equipment rental facilities the services of qualified ski instructors are also available.. Under suitably cold weather conditions in the upper 800-meter-long part of the piste snow cannons can be used to provide snow for the slope. In addition to the shuttle bus service three elevators are also at the disposal of visitors. The shorter but steeper 590-meter-long northern piste also starts from the summit. It is the most challenging slope in Hungary, skiing down this slope requires skiers to be highly skilled in the sport.
In addition to the breathtaking view and the various recreational activities, regular family programs are also organized, like the event Advent on Kékes held on the first Sunday of Advent organized annually for the 8th consecutive year.
Kékes anno
Kékestető has an extraordinarily positive effect on one’s health. The peak has been one of the officially listed climate therapy resorts of Hungary. At this altitude the dust and pollen concentration of the air is very low, and the atmospheric pressure is lower than on the plains. As a result the exchange of air in the lungs is significantly better, the number of red blood cells in the blood and haemoglobin levels increase and the viscosity of blood is also greater. The Kékes unit of the 75-year-old Mátra Medical Centre is located near the summit. Patients with severe pulmonary illnesses spend their days here – the medical centre was built here in the first part of the twentieth century mainly because of the favourable climatic conditions.
Why is Kékestető so popular with families?
The climate of the summit is perfect for people with chronic pulmonary illnesses, especially asthma, but it improves the conditions of those suffering from illnesses of the endocrine glands. However, the highest point of the country is an ideal destination for others as well, not only those who suffer from some diagnosed illness.
Due to its infrastructure the summit is suitable not only for hikers who come from afar but provides an excellent entertainment and relaxation opportunity for local families as well. Kékestető is easily accessible by both car and bus, so it is perfect for families with small children and baby buggies as well – it is the ideal choice for families with a lot of children. The magnificent view from the television broadcasting tower built in the 70s, or having coffee, tea or some cake in the round coffee-bar of the tower is a perfect pastime for the family after a long walk. There is a magnificent view of the Mátra from here, and on a sunny day even the distant ranges of the Tátra can be seen.
Kékestető is more than a geographical region or a simple extraordinarily high peak on the map of Hungary. As the highest point above sea level, it takes on a symbolic meaning: it has an extremely great, positive effect on both body and soul. We can safely say: the 1014 m summit and surroundings are the perfect place for an enjoyable, memorable and last but not least healthy way of winding down for everybody. Once you have experienced the wonderful vista of the Mátra Mountain and have filled your lungs with the crystal-clear mountain air, it is guaranteed that you will leave the place thinking „There is no place like Kékes!”
Kékes anno
8| 2
Business
www.bbj.hu
Budapest Business Journal | December 1 – December 14, 2017
Photo: BBJ/Árpád Pintér
Rolling out Technology, Focusing on Innovation When Vodafone appointed its technology director for the Hungarian business back in 2015, it knew that person would face a number of challenges. For a start, in an almost homogenously white country, they had opted for an Indian national. But according to Amrita Gangotra, by far the bigger surprise for her colleagues was that, in a predominately male-dominated field, she is a woman. Business Profile: Amrita Gangotra, technology director, Vodafone Hungary. ROBIN MARSHALL
“My team were more shocked that I was a woman, and at the pace of change that I wanted to work, than by the fact that I am Indian,” she told the Budapest Business Journal in an exclusive interview. “I guess there were four-to-six months of assimilation – on both sides.” But Gangotra does not seem to view that as a particular negative. She admits to having fallen in love with the country, and says there have been many positives. “The people have been more culturally accepting than I expected, much warmer. Initially I found my team a little quiet, but they are much more open and forthcoming now!” She puts much of that acceptance down to the fact that Vodafone Hungary’s operation in Budapest is multinational, with a much higher percentage of young people working
at the
1,000-strong
office at Lechner Ödön fasor 6, in District IX. What she calls the “vendor landscape”, however, presents a somewhat different story. “Larger multinationals have a different DNA than smaller Hungarian companies. They [Hungarian SMEs] also have the language barrier, and with that comes a certain shyness, too.”
“I have a predominately IT background. In Vodafone, the technology division is responsible for IT and mobile network technology, and I was keen to learn the mobile telecommunication technologies.” She has certainly been filling in those missing pieces from her professional career. As technology director, she is part of the general management team headed by the CEO, but her specific tasks have focused on LTE rollout and development of 4G+, modernization of the core networks, enterprise connectivity product development and IT digital transformation.
“From Vodafone’s perspective, this market is the right size to support innovation. We try a lot of new things here in Hungary, such as the instant network which was used during the recent hurricane Harvey in the U.S. What we see, particularly with 5G and 4G+, is that this is a good market to launch and thoroughly investigate new technologies.”
Amrita Gangotra, technology director, Vodafone Hungary.
Culture Shock
So, while there was a degree of tension to overcome, it was nothing out of the ordinary, Gangotra says. She moved from India to London in December 2012 to take up the role of head of enterprise technology. That brought a much bigger culture shock, one that was underlined once she moved to Budapest. In India, she says, talented children are pushed towards STEM (science, technology, engineering and math) classes, and beyond that towards careers in science, regardless of gender. She was stunned to discover that there seems an inbuilt bias in European culture that pushes boys towards science, but not girls. “That is pretty different from what I saw in India. I was always into science at school; for me, science was a given. In the early ’90s India was opening up, IT was beginning to really boom. Basically, then ‘science’ meant you became an engineer or a doctor. Now there are many more options, but they are equally open to boys and girls; you only need to be talented enough.” For the record, Gangotra clearly was “talented enough”: she graduated with an M.Sc. in Operational Research from the University of Delhi (India’s largest institution of higher education and one of the largest in the world) in 1988. The shock was greatest in the United Kingdom, because that is where she experienced it first, but the “girls don’t do science” mentality is just as prevalent
here, she says. Little wonder, then, that the technology director has become something of a STEM role model for girls and women.
Involving More Girls “With Vodafone’s HR and technology departments, we have programs where we try to involve more young girls in technology. Girls are not encouraged to take up technology: medicine maybe, but not engineering, and it is even more important to encourage that in Hungary. We began working with the universities last year, and ran our first summer camps this year for school girls
around
13-15,
at that impressionable age. What was interesting was that there were two clear groups. One set came without any real idea of why they were there, other than their parents had sent them. The other, smaller group was clearly interested in technology/IT.” It is not just schoolgirls who need to be given more opportunities. Anxious to bring technology and business closer together, Vodafone had already told Gangotra when she was appointed to the London job that she would be moving on within a couple of years, although where exactly would depend on what became available and her performance. The move suited both parties because, from Gangotra’s perspective, it would allow her to fill in a gap in her C.V.
She has been impressed with the level of the human talents she works with (she says she was surprised at the relatively low employee attrition levels, compared to India), and notes that the supporting environment is also a big help. “From Vodafone’s perspective, this market is the right size to support innovation. We try a lot of new things here in Hungary, such as the instant network which was used during the recent hurricane Harvey in the U.S. What we see, particularly with 5G and 4G+, is that this is a good market to launch and thoroughly investigate new technologies. With bigger markets, the data you need can sometimes be lost in all that size. The fact that the government is focused on being at the forefront of 5G is very much part of this positive background.” That sense of being on the developmental cutting-edge appeals to Gangotra, she admits. “In my previous job, I handled scale and the complexity of legacy organizations. Now, dealing with new technologies and mobile really excites me. I love playing with new technology.” Socially there have been positives, too. Because the Indian community here is smaller than in the United Kingdom, for example, it is more tight-knit. And the food, with its use of paprika and spices, is closer to Indian tastes than some of the blander Western cuisines. The fact that she likes “playing with technology” has helped too. Her daughter, an electronic engineer, is currently in Auckland, New Zealand doing a Ph.d in Nanotechnology, and her husband commutes between India and Hungary. “We all like technology, and use it to keep in touch,” she says. Vodafone expat postings last three-tofive years, and while Gangotra still has big projects to handle here, she says she cannot predict what the future might bring. “But I do not think I will ever sever ties with Hungary. I have made a lot of good friends – Hungarian and Indian – and I really love the seasons, the city. I will always have good memories of this place.”
2
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Budapest Business Journal | December 1 – December 14, 2017
Entrepreneurial Mind Shift in Progress Budapest Business School says it is ready to lead the change needed to bring about entrepreneurial education. BGE rector Dr. Balázs Heidrich (left) and Arno Meerman, co-founder and CEO of the University Industry Innovation Network.
LEVENTE HÖRÖMPÖLI-TÓTH
Higher education must adapt to the rapidly evolving requirements of the business sector, but sharing practical knowledge will no longer do. A total mind shift is needed instead. “As one of the largest business schools in Hungary, we regard it as our mission to support local SMEs and promote entrepreneurial spirit,” said Prof. Dr. Balázs Heidrich, rector of Budapest Business School (BGE) in his opening remarks at its conference entitled “How can Higher Education add Value to the Entrepreneurial Eco-system?”, organized as part of the Hungarian Science Festival 2017. “Being a flagship institute, we are ready to lead the charge and take related risks,” he said. ADVERTISEMENT
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“According to our strategy, we are working with our colleagues every day to encourage students to start their own business at some point, and this event is an important output of our work, since it marks a great occasion to exchange international experience and good practice,” Heidrich added. “This all fits into our broader ambition to become the leading business development institute in CEE.” Part of this ambition is BGE’s Team Academy, which prepares students through real-life case studies, as is the Budapest LAB Entrepreneurship Center, which coordinates all efforts related to entrepreneurship promotion.
The need is great, as Hungarian students are notoriously shy about founding their own companies. According to the statistics of the latest Global University Entrepreneurial Spirit Students’ Survey (GUESSS), some
83%
of Hungarian
graduates are planning to be employees after finishing their degree.
Fear of Failure
As Arno Meerman, one of the speakers at the conference, pointed out to the Budapest Business Journal, failure is still stigmatized in Europe, unlike America, so a whole new approach is required in this regard.
Business | 9
Meerman, who is co-founder and CEO of the University Industry Innovation Network (UIIN), stressed that in Europe, everybody still obsesses with the number of patents transferring technology from universities to businesses; however, success will come only from a meaningful partnership between academics and industry. “The idea is to make an impact on society that can be mutually beneficial,” said Meerman. “For students, it can mean an increased level of employability, or mastering the ability to start their own business. The bottom line is that it will happen only through a full mind shift change.” Lecturing about good practices and sharing practical knowledge won’t be enough by themselves; the willingness to become an entrepreneur won’t increase just because of that. Instead a mind shift is overdue, and a bigger emphasis should be put on psychological factors as well. Tailor-making programs to cultural differences is also of the essence, the expert said. “Sometimes there is too much focus on copying already existing models, but you can’t just go to Silicon Valley, take an inventory of what you see there and get a similar ecosystem going overnight in Europe. It doesn’t work that way,” noted Meerman. “You need to assess what you can learn from others but, more importantly, you need to be aware of what you are good at yourselves, and you should concentrate on your regional strengths. And at the end of the day, you shouldn’t measure success by the number of startups kick-started per year, but rather by the extent of mind shift that has come about.”
10 | 2
Business
www.bbj.hu
Budapest Business Journal | December 1 – December 14, 2017
A Little bit of Apulia in Budapest Italian culinary businesses have been looking to promote their wares at a dinner that coincided with the annual Italian cuisine week. CLAUDIA PATRICOLO
GREENWILL, through the sustainable catering initiative, co-organized a special culinary event, which offered the opportunity to experience the rich flavors of Apulian and Mediterranean cuisine, whipped up by the Michelin-starred chef Domenico Cilenti. This initiative aimed to promote ecofriendly practices, by providing a free checklist for planning catering events or services with a small ecological footprint. The buffet was the climax of the evening, offering the opportunity to experience
the rich flavors of Apulian cuisine, accompanied by wines from the cellar of Antonio Pisante. A good example of what Italy has to offer was represented by I Fiori dell’Orto, a natural herbs producer jointly owned by the Cilenti and Dr. Luigi Urbano. Bringing tradition and culture, I Fiori dell’Orto offers a combination of flavors starting from the most genuine and simple ingredients to create marmalades, honey, spices, olive oil and patés.
quantity,” Felice Pazienza, sales manager at Cara Nonna, told the Budapest Business Journal. With 28 years of experience, Cara Nonna is one of the biggest pasta producers in the Apulian region, with more than 100 different kinds of pasta shapes available worldwide. “Our customers will mainly be supermarkets, restaurants and then maybe individuals. There are many ways to enter a market, with discounts and special offers; the secret is in retaining customers’ loyalty,” Pazienza said, underlining how events like these are useful for producers to get to know the market, the competitors and potential clients. But Hungary and Italy have something else in common: wine. “Hungary is a country where people talk about wine; they produce it and they drink it,” wine producer Antonio Pisante said. His winery has become famous in Guests get a taste for Italy for its wine production philosophy: Italian cuisine week. using natural grapes, coupled with a noninvasive wine processing criterion and low levels of sulfites. Guest were able to savor the cuisine “In Budapest, there are many while enjoying an authentic Italian opportunities today, and its wine is performance by the tenor Rodolfo Gordini, recognized at international level, so it is and composer Francesco Sicari, lending an obvious and important market for us,” an authentic Italian atmosphere to the Pisante explained. “Our unique technique heart of Budapest. can be an added value to Hungarian wine varieties,” he said. The presence of Italian ingredients has Quantity and Quality come a long way in Hungary; according to “Hungary is an emerging country, both World Integrated Trade Solution (WITS), Italy regarding the demographic growth and the is among the top ten commercial partners tourism flow and, despite being a highfor Hungary with food product imports quality pasta producer, we [also] aim for amounting to USD 175 million in 2016.
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Continental: Keeping the Commercial World Rolling PROMOTION
Business | 11
Are there any innovations in the pipeline from Continental? Related to commercial vehicles I would underline the development of ContiPressureCheck sensors. The system can be personalized for the
Gábor Sőregi, Sales Manager of the Commercial Vehicle Tires Division of Continental Hungaria Ltd., helps our readers get to grips with tracks and trends of truck tires.
are also testing it with several fleet
unique demands of the client. Here the
operators to see how much fuel it
most important aim – beside recording
could save by ensuring more mileage.
the pressure and temperature data – is
Only few percent positive change
to ensure that the tire will be able to
might save a several millions for the
send information to the driver or to a
end user.
supervisory system about the tire profile
As a long-term aim, Continental has
depth, or about the condition of the road
also targeted in its Vision Zero project
surface. Then it can warm the driver about
bringing the number of car accidents
bumps or dangerous objects, for example.
What are the unique requirements
These intelligent tires represent the
and harmful emissions to zero, by the
Beyond that, the possible replacement
of truck tires?
future. Today, a sensor installed in a
end of the decade. It is important to
of a tire must be also signaled to fleet
A modern truck tire must fulfil the
tire is able to measure the current air
note that today Continental is not only
management, selecting an optional route
demands of safety, durability, efficiency
for the driver to the closest service. In
and environmental awareness.
the case of a flat tire, it can also help with
Naturally, depending on the type of
safe braking – working in cooperation
a truck tire, the focus point might be
with other vehicle safety systems –, not to
different. While in the construction
mention that it can make an emergency
industry the main expectation is that
call to a rescue service.
tires must be durable, in the case of buses the main criteria is safety.
How long does it take to develop a
The operators of the bus and truck
new truck tire?
companies are economic enterprises;
Developing a totally new prototype
therefore, the specific cost is also very
could take at least four or five years,
important. That means the ratio of
including the product testing. Even to
purchase and lifetime costs also play a
renew or facelift a product which is
significant role, not to mention that the
already in production could take two or
operators could get higher kilometer
three years.
performance by retreading the tires. What percentage of Continentalʼs What are the latest trends with
business comes from truck tires?
truck tires?
Unfortunately, we don’t reach yet the
First, let’s look at what kind of
performance of our passenger vehicle
expectations a consumer might have
tire division. In particular, we see the
from commercial vehicle tires. From
original equipment market, so when we
one side, the tightening environmental
have to supply the vehicle producers.
regulations show a strong demand
However, in the area of end user
for decreasing the rolling resistance,
services, we can say that the truck tire
plus in the same time cutting the
division is a leader.
cost of the fuel and the harmful emissions. From the other side, the
You have recently revamped your
fleet operators expect high mileage
website. What was the aim in doing
and fewer blow outs, because they
so? Are there any new features on the
want to limit unnecessary downtime.
website? What difference will users
Last, but not least, drivers and
notice?
passengers would like to reach their
Our website (www.continental.hu/
destination safely and in good time.
transport) has been renewed with a “The future is the intelligent tire,” underlines Gábor Sőregi, sales manager of Commercial Vehicle Tires Divison of Continental Hungaria Ltd.
This means, among other things, good grip and maneuvering performance. To harmonize the three main focus points is very challenging at a technical level, for all producers. Therefore, one of the main directions
new winter module. The aim was to help drivers and operators prepare for the winter season. Although winter tires are not obligatory in the transport segment
pressure and temperature, and is able
a tire manufacturer; our company is
in every European country, we think it is
to communicate with the telemetric
also a significant supplier in the car
important to provide the operators with
of developments is to create tires
system of the vehicle, or with an
segment as a well. We have a very
a very detailed information package
with low rolling resistance. From the
outside transport operator system. In
professional portfolio in the safety
about winter driving. Thus, visitors
Continental group, we could mention
case of any irregularity, it can send
field which includes air suspension,
can see in which countries they must
the EfficientPro product line. The
a warning sign. This system, which is
break systems (ABS) electronic
use winter tires, for example; besides
other direction developments are
called ContiPressureCheck, is used
stability control (ESP), and emergency
this, they can also check the history of
taking is so called “smart tires”.
by several operators in Hungary. We
brake assists (EBA)
Continental’s commercial tires.
12 | 2
Business
WHO’S NEWS
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Budapest Business Journal | December 1 – December 14, 2017
Do you know someone on the move? /// Send information to news@bbj.hu
Bayer Hungária Appoints Head of Government Relations
Zsuzsanna Benyó will head the new position of government relations and communications manager at pharmaceuticals company Bayer Hungária. She will coordinate local planning and implementation of the proposed BayerMonsanto integration. Monsanto accepted an acquisition offer made by Bayer last year. Following the transaction, approval of which is still pending, Bayer Hungária plans more proactive communication in the future, which includes more focus on relations with the government and companies. This area will be coordinated by Benyó. Benyó has 18 years’ experience in PR, branding, government relations and CSR. Before joining Bayer, she was head of PR and communication at MercedesBenz Manufacturing Hungary, and before that a manager at the Grayling communications company. The European Commission is presently conducting an in-depth investigation of Bayer’s planned USD 66 billion takeover of Monsanto, saying it is worried about competition in pesticide and seeds markets.
Bayer has said it would likely take until early next year to complete the planned takeover, which had initially
been expected to be completed by the end of 2017. The European Commission’s scrutiny of the controversial takeover has a deadline of January 8, 2018, according to reports.
UNLEASH Welcomes Head of Strategy
years. I believe this is due to our unique support and engaged community who wish to see them succeed. I look forward to Mark helping them on that journey.” Downey commented: “People are at the core of any economy, and yet economies around the world are changing faster than many people can understand. Innovators will find a sure partner in UNLEASH, which is truly committed to their success. I look forward to growing with the team.” A native of Ireland, and a qualified engineer with hands-on business experience and knowledge, Downey holds an MBA from Central European University (CEU), Budapest. “His big-picture thinking, candid approach and depth of experience in engineering, corporate life and startups bring an essential skillset to UNLEASH and its fast-growing startup community,” a press release sent to the Budapest Business Journal notes.
Farkas Bársony Joins PwC Hungary
UNLEASH (formerly HR Tech World) announced the appointment of Mark Downey as head of strategy and corporate ventures, based in Budapest. UNLEASH describes itself as the largest corporate network focused on the interface between people, technology and the future of work. Downey will work on building internal capabilities to serve and leverage the UNLEASH ecosystem. Additionally, he will be focused on delivering increased value to the UNLEASH startup community to expand the support it provides to innovators in the HR technology space, as well as capitalizing on opportunities via corporate venture models, according to the press release. “We have long recognized the importance of startup innovation in the corporate arena,” said Marc Coleman, CEO and founder of UNLEASH. “Over 80% of the startups who have participated in our events achieve longevity and have managed to raise over half a billion dollars combined in funding over the past three
several management positions at country, regional and global level at GE. Bársony continues as president of the American Chamber of Commerce in Hungary, and as a member of the National Competitiveness Council. He is an external lecturer in international tax law at Corvinus University of Budapest. Bársony received the Knight’s Cross of the Order of Merit of the Republic of Hungary this year for his outstanding contributions to improving HungarianAmerican business relationships. In his new post, he will work as a tax and legal services partner, closely engaged in CEE projects, and will act as the lead PwC TLS Partner for GE in the region. Bársony is an active sportsman. In his free time, he also enjoys spending time with his family and playing in a band.
MOL Names Chief Financial Officer
Farkas Bársony has joined tax advisory firm PwC Hungary as a partner. He was previously managing director of GE in Hungary and also EMEA tax director of GE Energy Connections. Bársony is a lawyer and tax advisor holding law and LL.M. (International Tax Law, Wirtschaftsuniversität) diplomas, as well as an MBA in economics. He held
Ákos Székely is taking over the position of chief financial officer at MOL Hungary from Zsombor Marton, who will continue his career as director of the research and production business unit at MOL. Székely is an economist who had been CFO at the INA Group since February 2016, and prior to that held the same post at TVK/MOL Petrolkémia. His career has also taken in Moltrans, Petrolszolg, SMAO, SlovnaftTrans and Geoinform.
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Business | 13
Claiming Flight Refunds has Never Been Easier If your flight is late or cancelled, statistically you are unlikely to bother to claim compensation. A Hungarian startup is determined to change this. LEVENTE HÖRÖMPÖLI-TÓTH
Since November 2016, some 35,000 takeoffs and landings have been registered in the European Union that involved a cancellation or a delay of more than three hours. However, European air passengers don’t seem to be aware of their rights, with just 1% of them enforcing their claim on average should something go wrong during their air travel. Hungarian startup, Flight Refund is ready to reform this attitude, and its plan has just won it backing in the form of HUF 250 million in funding from Hiventures.
Gábor Bánfai owner (second left), Anita Zoltai-Szabó director of business development, Anikó Bolyó managing director. “The venture capital injection indicates a high level of trust that is rooted in the fact that the number of our customers has increased six-fold in the past year and we are handling claims worth HUF 100 mln,” Flight Refund owner Gábor Bánfai tells the Budapest Business Journal. The company was founded back in 2012; it now employs twenty people and works with a group of experts on a permanent basis. Flight Refund offers a smooth online solution that allows those seeking compensation to get their claim validated and collected against a commission. Validation is free-of-charge, and once the claim receives the green light from the experts of Flight Refund, you can sit back and wait until compensation ranging from EUR 250 to EUR 600 is collected. “Many times, airlines ignore complaints, or attorney costs would often exceed the
News
///in brief
OECD raises Hungary GDP growth forecasts
The Organization for Economic Cooperation and Development (OECD) raised its GDP growth forecasts for Hungary in its biannual Economic Outlook released yesterday, reported Hungarian news agency MTI. The OECD raised the forecast for this year to 3.9% from 3.8% in its previous Economic Outlook, released in June. It also raised the forecast for next year’s growth to 3.6% from 3.4%. The OECD said Hungary’s economic growth would continue to rely on domestic demand. Public infrastructure spending will benefit from European Union funding and business investment from cheap credit, it added. Home subsidies will further boost the construction sector, and higher real wages and employment will support continued growth of private consumption, the OECD said. Inflation could be pushed “towards 4%” by end-2019, it added. Scaling back the government’s public works employment program at a faster pace could ease the labor market shortage as well as inflation pressures, while public infrastructure and business investments could boost productivity more than expected, preserving external competitiveness, the OECD said. “On the other hand, a rise in geopolitical tensions would reduce European growth with a negative impact on Hungarian exports,” it added.
In a statement released after the OECD published its latest Economic Outlook, the Ministry for National Economy said international organizations, analysts, ratings agencies and investors had acknowledged the achievements and positive outlook of the Hungarian economy.
Subsidiaries of MNCs outperform local peers
Foreign-owned companies tend to perform much better in Hungary than local ones, reported portfolio.hu on the basis of data released by the Central Statistical Office (KSH) this month. While the number of subsidiaries controlled by foreign entities is decreasing and proportionately there are far fewer of them than Hungarian ones (down from 3.6% of the total in 2008 to 3.2% in 2015), the added value they produce is outstanding. In 2015, their revenue was HUF 45.775 trillion, 53% of the revenue of all companies operating in Hungary. Their added value in 2015 was up to HUF 9 tln from HUF 8.3 tln the previous year. This is due to the fact that they use more developed technologies. At the same time, they employ 26% of all the employees in Hungary, indicating that they are far more efficient than their Hungarian counterparts. Their proportion of investments dropped in 2015 to 40%, down from 50% earlier. Most foreign businesses are from Germany (17%), Austria (15.3%) and the United States (9.1%). They are mostly active in the wholesale, retail and real estate sectors.
amount of compensation. This erodes customers’ willingness to enforce their rights,” managing director Anikó Bolyó says in explaining the reasons for overall passivity on the part of travelers. However, in 2017, only several largescale incidents could have given rise to easy-to-collect claims. Ryanair’s big wave of cancellations concerned two million bookings, whereas the Air Berlin bankruptcy and a dramatic IT crash in the British Airways computer system caused damage to 100,000 and 200,000 people, respectively.
Presence in 11 Countries Flight Refund customers are helped by customer service in 11 languages and a highly standardized online procedure. In the case of the latter, efficiency is of the essence ADVERTISEMENT
due to the large number of customers and the relatively small individual compensation and commission amounts. “We pride ourselves on the fact that our online scheme is the only existing one where you can get your claim enforced as a travel agency customer,” adds Bolyó. In Hungary that fact bears special significance as 50% of plane tickets are still sold by travel agencies, and Flight Refund has signed the top ten local ones as partners. Some of them already offer their clients an exclusive service where travelers get notified via e-mail on the day of the delay that they would be entitled for compensation and they can register on the webpage of Flight Refund to claim it. As for airlines, payment morale is improving. “It has to do with cultural differences as well whether and to what extent a company shows a willingness to pay,” notes Bánfai. “Wizz Air, for instance is certainly on the right path, but Ryanair is notoriously making trouble all the time.” At the other extreme is Air Canada, Bánfai recalls, which once paid out five passengers EUR 600 each in less than three weeks. Normally, payment is made six weeks after the incident at the earliest, but the payment might be delayed for more than six months if the case goes to trial. According to Bánfai, further foreign expansion is in the pipeline. “The Hungarian market is not big enough. We are present in 11 countries, but we are ready to further solidify our cross-border operations in the EU.”
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Budapest Business Journal | December 1 – December 14, 2017
Special Report Christmas Shopping
A guide to Budapest’s Christmas markets and finding something uniquely Hungarian
Air Passengers Grabbing Ever More Hungaricums 16 The New World of Serious Games 16 Christmas Gifts That Help Society 17 Budapest Christmas Markets Strongly Boost City Brand 18
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Budapest Business Journal | December 1 – December 14, 2017
Special Report | 15
Hungarikum: A Badge of Quality and Uniqueness One does not have to live in Hungary to know that the country does not only sport beautiful sights, but also produces a fair share of unique products that the world has come to know as Hungarikums. But what makes a pastry or a vegetable a Hungarikum? Becoming one is harder than you would think.
The term is a collective one and was coined to indicate a value of a product that is considered to be worthy of distinction, which also represents the high performance of Hungarians putting out these products. The term suggests that the mentioned product bears typically Hungarian attributes, is unique to the country and is special according to the highest standards of quality.
CHRISTIAN KESZTHELYI
Although the term had been used long before, it became official when the Hungarian government established and declared Hungarian national values and Hungarikums on April 2, 2012 in passing Act number XXX of 2012. The act was passed with the idea of giving a legal framework to Hungarians for specifying and identifying their own national values, and also to aid them in promoting their products.
Not Easy
However, becoming a hungarikum is far from easy. A bottom-up National Value Pyramid was established, based on which a suggestion can be submitted by anyone to the Collection of Hungarian Values and the Hungarikum Committee. Once admitted, these bodies decide whether the subject of the admission bears a value that might be accepted or not. Should something be approved, the petitioner is eligible to submit the product to the
THE NATIONAL VALUE PYRAMID
Hungarikum
Outstanding National Value
National Value
Suggestion
• Collection of Hungarikums
• Collection of Hungarian Values
• Country Collection of Values • Sectorial Collection of Values
• National Region’s Collection of Hungarian Values Abroad
• Local Collection of Values • Regional Collection of Values
• Local and Regional Collection of Hungarian Values Abroad
Collection of Hungarikums, and it can be named as such after the Hungarikum Committee gives the greenlight. “There are 12 exceptions that have been named as hungarikums. These
12 values
became hungarikums by the decision of the Hungarikum Committee based on the above-mentioned Act’s III. 12. § (2) point due to the fact that these values can be found on the UNESCO world heritage list,” the government-run official hungarikum site hungarikum.hu explains. Currently, the list of hungarikums is rather long. Entries on the list fall under the following categories: agriculture and food industry (24 entries), health and lifestyle (five), industrial and technological solutions (three), cultural heritage (27), sport (one), natural environments (two), tourism and catering (four), and built environment (one). The list sports the obvious examples such as the well-known Hungarian eau de vie “pálinka” or the recently added “chimney cake” pastry (although the Czechs and Slovaks also claim it as a traditional treat), and also some quite surprising ones like the “built environment of Torockó” and the “folk dance house method as the Hungarian model of perpetuation of cultural heritage”.
How the act Defines a Hungarikum Hungarikum is a collective term indicating a value worthy of distinction and highlighting within a unified system of qualification, classification, and registry and which represents the high performance of Hungarian people thanks to its typically Hungarian attribute, uniqueness, specialty and quality, • which are considered the work and outstanding value of the Hungarian people both within Hungary and abroad, or • which are natural values under protection, or • which are national products of a superior standard, or • which are classified as hungarikums by the Hungarikum Committee as a result of the individual assessment conducted in accordance with the provisions set forth in the legislation issued for the enforcement of this law, or which are considered as Hungarikums by virtue of this law. (Source: hungarikum.hu)
Take Hungary Home
As the Christmas holidays near, the popularity of the more portable hungarikums rises sharply. Foreigners sipping wonderful mulled wine and eating the yeast-based deep-fried “lángos” dough while walking between the stalls of open air Christmas fairs are prone to take home a taste of the country. As such there are some very nice places to check out to do the shopping. The food markets of Budapest, such as the Central Market, the Downtown Market in Hold utca, the Castle Garden Bazaar and the Great Market Hall are good points of sale. Should somebody be unfamiliar with what Hungary has to offer, Goose liver pate, Hungarian salamis and sausages — especially Pick — and the Hungarian paprika are certainly gift picks that cannot disappoint any recipient.
If somebody prefers to taste a country by the alcohol it produces, Hungarian pálinka certainly falls under the “musttry” category, as does the world renowned red wine “Egri Bikavér”, which translates as the Bull’s Blood of Eger, or the uniquely bitter digestive Unikum. Hippocrates most probably did not have what can at times be the heavy and greasy Hungarian cuisine in mind when he said “Let food be thy medicine and medicine be thy food”. That said, it cannot be denied that washing down some fried sausage with a warming shot of pálinka in the snowcovered downtown markets of Budapest, all lit up by Christmas lights, feels like an unforgettable hungarikum moment.
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Air Passengers Grabbing Ever More Hungarikums Uniquely Hungarian premium products known as hungarikums sell exceptionally well at Budapest Liszt Ferenc Airport, which is due to coordinated promotion campaigns and the high-end quality offered, the airport says. LEVENTE HÖRÖMPÖLI-TÓTH
Foreign guests have been flooding the Hungarian capital in the past few years, with air passenger numbers on the constant rise. Liszt Ferenc Airport welcomed 11.4 million of them in 2016, a growth of 11% compared to the year before, while this year is expected to see yet another record visitor set, possibly as high as around
12.5 million.
More tourists mean more spending, at least in theory, and typical high-end Hungarian products have also benefited greatly. Pick, the flagship salami brand of the country, and
Christmas trees are decorated with candies in shiny colored bow packaging.”
‘Trinity’ Sales
It was in 2012 when a campaign was first set up as a so-called trinity project – involving Budapest Airport, Heinemann Duty Free and the producer of the given Hungarian product – in the SkyCourt and in the duty-free store itself. Ever since, such tastings connected with discount sales have become routine due to their tremendous revenue hiking effect. Pick salami tastings even managed to push monthly sales of the pork delicacy over the dream threshold of EUR 200,000, a formerly unprecedented monthly figure for any given product on sale at the airport, including top-notch Scotch or women’s cosmetics. Heinemann sells ten out of the
Unicum, a trade-mark herbal liquor, top the best-selling lists of local specialties at the airport, Heinemann Duty Free reports. Hungarian sweets are also very much in demand, with Szamos marzipan delivering the strongest sales figures. Last year, some 13% of air passengers bought something in the airport’s dutyfree shops, and an increasing number of them tend to vote for Hungarikums with their wallet, a decision they are helped towards by targeted on-the-spot promotions. Ildikó Jankovich, managing director of Hungarian Duty Free (a joint venture between Heinemann and Budapest Airport) says “The regional assortment represents approximately 24% of the total turnover of Budapest. We are proud to present the best selection of Hungarian wines, spirits, delicacy and confectionery
The biggest fans of Hungaricums are the Russians, the British, the Finns and the Chinese. The latter are particularly fond of Tokaj. products. Budapest offers a wide range of seasonal products in this [holiday] period; this product range represents approximately a few percent share of the total turnover.” She added, “The most iconic Christmas products in our assortment are the Christmas candies which represent a specific Hungarian tradition. In Hungary the typical
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food categories
that have been recognized as hungarikums. The choice covers spices, wines, pálinka – naturally –, liquors, sweets, meat products and marmalade providing access to the cream-of-the-crop of these select Hungarian products. Actually, sweet and spicy paprika, for which the country is probably best known, delivered 16 tons of sales in 2016, whilst average annual sales of goose and duck liver amounted to 11 tons. But who buys that much local stuff? The biggest fans of hungarikums are the Russians, the British, the Finns and the Chinese. The latter are particularly fond of Tokaj as they are very much into sweet wines. The available product range is subject to change since it is adjusted to customer trends every year.
ACADEMIC COLUMN
The New World of Serious Games Dr. Zoltán Buzády Associate Professor of Management, Director of the Leadership & Flow Global Research Network, Corvinus University of Budapest, Hungary
The four weeks of advent, the preChristmas preparation period, are typically also the high season of shopping and sales of consumer goods, perfumes, socks, toys and games.
Being a global expert in educational games and the gamification of adult learning, let me give you some insights into those features that make a modern game also a “valuable” one. In fact, the gamification of many segments of life has become a general trend. So, what do we call a “serious game”, then? They typically are (1) on-line simulation applications that make use of the (2) mechanisms of traditional games such as badges, achievement levels, and trophies, in order to (3) communicate or teach specific knowledge. Serious games can help introduce relevant concepts and the application of those concepts to solve real problems. A classical video game’s primary objective is merely entertainment, while serious games focus on effective learning and behaviour change; but, if well-constructed, they can also be great fun to play. This is why FLIGBY, our leadership development game, won the global #1-award in Seattle.
Evolution of Games
My scientific work was to research the evolution of games and to identify what makes new corporate gamification
solutions really successful. We have identified six standards or state-ofthe art criteria when designing such a serious game.
Key game-enhancing features of FLIGBY and other leading Serious Games . Source: Missing Link Discovered, 2016 (A book on Flow, Leadership & Serious Games, co-authored by Zoltán Buzády).
Let me briefly illustrate the application of some of the bullet-point-statements above: You are in the driving seat refers to interactivity, a key feature of all video games. It means that the game prompts the player to periodically intervene in the storyline by having to choose one option from several. As a consequence, the storyline will change, and the game becomes dynamic. The trial-and-error feature addresses your fear of failure, which is coded inherently into all of us: we are afraid of harming our reputations, considered to be someone who is “not good enough”. One of the most attractive features of good games is to test one’s skills in a safe, zerorisk environment, that allows the player to fail and to experiment: i.e. to learn through trial and error. A modern, smart game keeps the player/learner in what my colleague Prof. Mihály Csíkszentmihályi, founder of positive psychology, calls the “Zone” or “Flow” state-of-mind. So, when you are looking out for what kind of game to buy for your loved ones, why not find a game which applies these modern features of what makes a game a “valuable and good”? Gamify your shopping by trying to find a gift which can teach something, does not get boring over time and, most importantly, is really fun to play! Merry Christmas, Season’s Greetings and Happy New Year!
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Christmas Gifts That Help Society Giving presents feels good, but giving presents while also doing society a favor feels even better. As Christmas approaches, and if you are looking for something a little different, it is worth taking a look at the options Hungary offers when it comes to charity and thoughtful gifts.
ÁGNES VINKOVITS
Making conscious present choices goes from very small things, such as buying fair trade Santa Claus chocolates, which are available at most of the big retail outlets, to more personalized decisions with hopefully a long-term effect. According to the data of the Hungarian Trade Association (OKSz), Hungarians are likely to spend about HUF 100 billion, including both on- and off-line purchases, this year to see their loved ones happy. It hardly needs sating that there are thousands of people out there with some type of social disadvantage who could make use of some good intentions, too. The “gift” could be voluntary work, a piece of cake, a gift box or money for charity; there are plenty of foundations who help get the aid to the right address. Csodalámpa Alapítvány, which translates as “Magic Lamp Foundation”, fulfills the wishes of children with serious or life-threatening illnesses, with the aim of providing great experiences that support the kids during the long and exhausting period pf recovery. Dreams vary from going on a helicopter flight to meeting celebrities to getting laptops or other gadgets. If a Christmas present that as a side-effect makes someone else happy too is wanted, running T-shirts, keyrings, and bracelets can be ordered from the foundation’s website. Of course, it will always also welcome straight donations.
Social Initiative
Many of Hungary’s social initiatives focus on children living on the social periphery. Mikulásgyár, which translates as “Santa Claus Factory”, does not take financial donations but welcomes everything from clothes and toys to nonperishable foods and cleaning supplies until December 22 on Ötvenhatosok tere, where concerts and other family
programs are also arranged. The events are free of charge, based on the principal that good things come to those who give. While kids are normally in the center of Christmas, there are grown-ups too with dreams to fulfill – even if they are profoundly banal in some cases. The name of the Budapest Bike Maffia (BBM) might sound familiar to those who keep an eye on the grassroots civilian initiatives of the capital (we also wrote about them in the Budapest Business Journal of March 24). The latest project from this group of volunteers who are not only crazy about bicycles but also devoted to helping people in need, is the MyBudapest 2018 Calendar. It illustrates the months of the year with photos taken by some of the homeless people of Budapest. The 12+1 pictures (one is featured above) were chosen by a professional jury and the artists, beyond the financial reward they got for their photos, will also share the money coming from the sales of the calendar, as the final is aim is real social integration, and not one-time help. Thus, those purchasing the calendar, available at BBM’s website (bbm.hu/en – look for My Budapest Naptár in the online shop section) – not only buy a unique and city-related present, but also buy hope and a chance for someone else. BBM was born at during what was a particularly cold Christmas in 2011, by a group of friends collecting donations such as food and warm clothes and delivering them to those living on the streets. Since then, the fast-developing community has come up with numerous innovative ideas to help, such as their Plus One Sandwich program, which inspires pupils to bring extra sandwiches to school, which are collected and then delivered to homeless people, or their company team-building programs, which familiarize employees with solidarity and cooperation out in the streets.
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Photo: BFTK.
Christmas Markets Strongly Boost Budapest Brand
The main Advent and Christmas Fair at Vörösmarty tér has been drawing in tourists in ever greater numbers.
Interest in visiting the Hungarian capital from abroad has never been greater, and apparently the cityʼs ever-improving Christmas markets are adding to the appeal. LEVENTE HÖRÖMPÖLI-TÓTH
Tourism in Budapest has been reaching new heights year after year since 2010, with the Christmas holiday season being particularly busy. Citing Central Statistical Office data on commercial accommodation the Hungarian Tourism Agency tells the Budapest Business Journal that the
number of guest nights increased by 19.8% from December 2015 to December 2016, and 18.9% more visitors arrived in Budapest during the same interval. Nationwide figures are also impressive: the number of both domestic and foreign guest nights doubled between 2010 and 2016. This year promises to break new records yet again. The usual list of attractions and an ever-improving reputation of the city continue to explain most of the tourism hype. However, an increasing number of people are picking Budapest as their city destination because of its Christmas markets: 34.4% of foreign visitors polled by the Budapest Festival and Tourism Center (BFTK) in 2016 confirmed the trend. BFTK is in charge of overseeing the largest such venue in town, the sprawling market on Vörösmarty tér, which has seen a marked (and deliberate) rise in the standard of good offered. BTFK says some
800,000 people
attended the market last year. The week from Christmas to New Year’s Eve turned out to be particularly
busy, with nearly half of all visitors turning up in that period. Polls further indicate that the guests arrived from 26 different countries, with the United Kingdom, Germany and Russia the top three in terms of sending tourists.
Solid Recognition
“The concept of the Budapest Christmas market has gained solid recognition among tourists and it highly contributes to city marketing and the promotion of our gastronomy and values,” Zoltán Árvai, general manager of Hilton Budapest, tells the BBJ. “Although we don’t have specific statistics, in our experience the majority of our guests who come here with a leisure purpose do tend to frequent the event.” This season will, once again, offer a wide range of choice on Vörösmarty tér. “We are presenting a different gastro theme every week. This way you will be able to get a taste of Hungary’s regional food and wine specialties,” the BFTK says in a statement sent to the BBJ. “The open kitchen show of our gastro hacker and chef will guide you through a journey that features local delicacies typically made around Christmas time.” Goose and wild game debuted in November, whereas the weeks of
December are scheduled for stuffed cabbage, fish, Hanukkah holiday food, traditional Christmas dishes and New Year pork. All that tasty stuff will be paired with select Hungarian wines. Be aware, though, there will be tastings too, so it will be hard to avoid overeating. Mark Tuesdays in your calendar, as the day when the open kitchen show takes place. Apart from Vörösmarty tér, downtown Budapest hosts another equally grandiose Christmas market. The Advent Feast in front of the Basilica attracts a similar number of visitors as its counterpart located half a mile away. Not surprisingly, foreigners love the alternate venue as well: around one-third of all visitors come from abroad. What is more, their deep-held affection has recently been revealed in a major international forum; the Advent Feast at the Basilica was voted among the top ten Christmas markets on the European Best Destinations website. (It came ninth, just ahead of Brussels and just behind Prague.) It was also the sole Hungarian candidate shortlisted for the 2018 voting. “As in every previous year, there will be something new this time as well: the
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Budapest Business Journal | December 1 – December 14, 2017
fair will receive a ‘new dimension’,” says PR specialist Mónika Szántó, managing director of Adage Personal Relations. “Apart from the by now ‘business-as-
“The concept of the Budapest Christmas market has gained solid recognition among tourists and it highly contributes to city marketing and the promotion of our gastronomy and values.” usual’ skating rink, the biggest highlight should be a light painting show that is set to provide a jaw-dropping experience for the audience.”
Christmas markets are not restricted to Budapest, of course: This is the market at Széchenyi tér, the main square in the historical center of Pécs, taken on December 19, 2016. prepared to keep visitors entertained. Even the hopelessly picky should be able to find some comfort in the realm of gastronomy and shopping.
“Around
Basilica Backdrop
After dusk, a short film will be screened at every hour to mimic a 3D visual movie experience. A Christmas tale will be projected on the façade of St. Stephen’s Basilica across a total surface of some 1,000 sqm, a rarity even by global standards. Spectators are encouraged to enjoy screenings with 3D glasses that will be also available on the spot. With some 200 cultural programs scheduled, the venue seems to be well-
60% of
exhibiting hand-craft vendors tend to return,” adds Szántó. “This is another indication that the event is suited to boost business for exhibiting SMEs.” The hand-craft landscape is dominated by contemporary artists who all undergo a stringent pre-selection procedure prior to receiving the permit to exhibit. While food and drinks are sold from uniformly designed stands, the level
of gastronomical variety is the exact opposite of what that standardized look might suggest. In fact, part of the concept is to allow a limited number of vendors per food type so that visitors can choose from the widest possible range. Specialties include a salty version of the famous chimney cake Hungaricum, and diabetic-friendly mulled wine. All plates, cups and cutlery will be made of biodegradable material and will be collected for recycling. It is just one more reason to enjoy a carefree time with all those Christmas lights on, against the backdrop of the majestic St. Stephen’s Basilica.
Christmas Markets Gastro Opening Hours • Vörösmarty tér (District V): Nov. 10 - Dec. 31, 10.00-21.00, on weekends 10.00-22.00 • Szent István tér (Basilica, District V): Nov. 24 - Jan. 1, 11.00-22.00 • Városháza Park (District V): Nov. 17 - Dec. 27, 10.00-20.00, on weekends 10.00-21.00 • Óbuda, Fő tér (District III): Dec. 1 Dec. 23, 14.00-21.00, on weekends 10.00-23.00 • Hegyvidék, Városháza tér (District XII): Dec. 3 - Dec. 24
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Szent Mikulás and the Bright Side of Being ill in Hungary If you don’t already know, Mikulás or Miklós is the Hungarian Saint Nicholas although he is becoming more and more like Santa Claus. He arrives on December 6 (the saint’s feast day) and leaves before Christmas. On December 5, Hungarian children traditionally placed a boot or a shoe on their windowsill for Mikulás to fill with gifts of fruits, candies and, increasingly, toys.
David Holzer is introduced to yet another littleexplored aspect of Hungarian cultural life: the rituals of being sick.
I continued on with the Salvus when I entered the second phase of my ritual cure. This was to eat nothing but potatoes for two days, followed by another two days of white rice only.
DAVID HOLZER
I’ve not been fighting fit for the past week. While this hasn’t been much fun at all, it has given me a whole new insight into Hungarian life. Like so much in this country, it seems to me that being ill here involves being part of a ritual that hasn’t changed in years. But in a good way, mercifully. As soon as it was clear that whatever sneaky virus it was that laid me low wasn’t going away overnight, my Hungarian partner began the healing ritual. For the first couple of days I ate nothing but Keksz Household Biscuits, probably the dullest biscuit I’ve ever tasted. Although they’re sweet, in the way a piece of wood is, Keksz are so dry that dipping them in tea isn’t a cozy indulgence. It’s a necessity. Interestingly enough – to me, anyway, in a mildly feverish way – I first assumed that Keksz Household Biscuits were some relic of the socialist years. They’re certainly boring enough. But they’re not. Keksz only date back three decades. Or maybe they’re modelled on a biscuit munched by young chess-players at summer camps. That English wording in the title – “Household Biscuits” – should have been a giveaway. I guess Keksz were created in an attempt to corner the world market in extraordinarily dull biscuits that people only ever eat when they’re ill. Given that this is my first encounter with the mighty Keksz, the manufacturer’s visionary strategy failed somewhat. But handfuls of Keksz and tea did get me through that first couple of days. As did the medicinal water of Salvus.
Remarkable Cure All
According to the Salvus website, Salvus Spa Water from Bükkszek, at the western foot of the Bükk mountains, is the most popular spa water in Hungary. Whether that’s true or not, Salvus is certainly a most remarkable water. Apart from being a treatment for, among other things, diabetes, smoking problems, respiratory diseases, stomach ulcers, asthma and laryngitis, Salvus also cures nettle rash. So now you know. Unlike most spa waters, Salvus is not a water you’d quaff. It’s recommended that
Mikulás or Miklós is the Hungarian Saint Nicholas, for many the “original” Santa Claus, shown here in an illustration from the 1900s. you drink Salvus in small doses, sip by sip. After taking a large mouthful, I could understand why. The water is so thick with mineral goodness it’s almost gravel. I continued on with the Salvus when I entered the second phase of my ritual cure. This was to eat nothing but potatoes for two days, followed by another two days of white rice only. And now another character entered into my world. I couldn’t find out anything about Dr. Theiss Lándzsás útifü szirup in English online. But I actually preferred this to arriving at a slick website that told me far more than I needed to know about what I was drinking.
Miracle Cure
I was free to picture Dr. Theiss as a rosycheeked character with pince-nez glasses, a walrus moustache and a florid handkerchief poking out of the top pocket of his white coat, bustling around a sanatorium in the foothills of the No-idea-where mountains as he invented his miracle cure.
I’m not saying it is miraculous, but Dr. Theiss Lándzsás útifü szirup is by far the best elixir for shifting stubborn catarrh I’ve ever encountered. A spoonful twice a day was enough to make me feel like a boulder was being rolled off my chest. One morning I found myself singing “Lily the Pink”, that 1968 song by the Scaffold with its reference to a “medicinal compound, most efficacious in every case”. I knew I was truly on the mend. By then, the next ritual I had to look forward to was Szent Mikulás night on December 5.
Szent Mikulás
Up until now, my track record with remembering Szent Mikulás even has a night hasn’t been good. I’ve been completely mystified when, on the morning of the sixth, my partner has presented me with a chocolate Santa. But I’m determined that, this year, I won’t have to resort to the lame excuse that “We don’t have Szent Mikulás in my country.”
Mikulás is accompanied by the splendid Krampusz when he arrives in Hungary. Found in much of Central and Eastern and even Northern Europe, but especially in Czech Republic, Slovenia and Slovakia, Krampusz is a nasty elf, not unlike the god Pan or the Devil, who punishes bad children by leaving them (awccording to various traditions) pieces of coal, carrot or potatoes instead of gifts. In Hungary, it is a virgács, a gold or bronze colored birch switch. No doubt, most children usually wake up to a combination of gifts and a switch. Taken together, the experience of being ill in Hungary and looking forward to Szent Mikulás night reminded me of why it’s often so fascinating to live in this country. In the United Kingdom, we’ve pretty much lost our traditions and rituals. If we fall ill, we dose ourselves with soulless concoctions mass-manufactured and marketed by gigantic, faceless multinational corporations. There’s no ceremony in getting well. What we laughingly call the “festive season” is essentially an excuse to buy as much pointless rubbish for each other as we possibly can. It’s as if Christmas is simply a brief time out before all the gorging on conspicuous consumption can commence all over again. No matter how much we harrumph about how terrible this is, we’re all suckers for the bright and shiny stuff as long as it’s marketed to us in a way that makes us feel special. We’re all as guilty as each other. So, give me rituals and peculiar preparations by people with unpronounceable names any day. And this year I’ll be asking my partner for a virgács on Szent Mikulás. My life simply won’t be complete without a bundle of twigs painted gold for no reason I can fathom.
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WHAT’S ROSSMANN SANTA RUN
Sunday, December 3 Sóház utca
The fourth Rossmann Santa Run will actually feature two runs, one starting at 1 p.m. and the other at 3 p.m., and both 4 km long, sandwiching the family fun run at 2:15 p.m. Before setting off, runners will have the chance to warm up with exercises led by Hungarian fitness world champion Alexandra Béres.
KISKERTPIAC GREEN CHRISTMAS
Sunday, December 3 Anker’t Paulay Ede utca 33 10 a.m.-4 p.m.
Kiskertpiac is an eco-friendly fair of flowers, plants, bouquets, and gastro- and design products, providing inspiration for a sustainable urban lifestyle. For the first Sunday of Advent the fair features natural decoration, Advent wreaths, a festive culinary selection and green design in addition the usual plants and flowers.
CSAK A MENTES CHRISTMAS FAIR
Saturday, December 9-Sunday, December 10 Bijó Energia Egészségközpont 1135 Budapest, Róbert Károly körút 98-96.
FESTIVE TUNES AT THE ACADEMY OF MUSIC
Csak a Mentes presents the best Hungary has to offer in allergen-free products at its Christmas fair. The aim is to promote companies that either produce, offer, or distribute the most delicious lactose-, gluten-, sugar-free, paleo and vegan products and foods. Shorter texts provided by WeLoveBudapest.com For the Budapest Business Journal’s roundup of Christmas markets, see our Special Report section.
The Advent Season is ushered in on December 2 with a concert featuring the award-winning Angelica Leányzenekar girls’ choir, organist Ágoston Tóka, sopranos Andrea Deák and Orsolya Sáfár, Anna Judit Kiss (mezzo soprano), Judit Rajk (alto), István Horváth (tenor), András Kiss (bass), the Budapest Strings and a Georgian male choir in the special atmosphere of the Great Hall of the Academy of Music. The program includes Claude Debussy’s cantata “La Damoiselle élue” (based on the poem “The Blessed Damozel” by Dante Gabriel Rossetti), László Lajtha’s “Magnificat, op. 60” and Camille SaintSaën’s “Christmas Oratorio” (“Oratorio de Noël, Op. 12”). The least well-known of the three to international audiences, Lajtha was a Hungarian composer,
ethnomusicologist and conductor who died in 1963. His “Magnificat” was written for female choirs and organ in 1954. Angelica Leányzenekar, winners of the Girls’ Choir Olympics and numerous other national and international awards, was founded by Professor Zsuzsanna Gráf in 1989, with its members drawn from the students of the music department of the Budapest Városmajori High School and high school graduates now studying various universities. At the time of writing, tickets for the performance are still available online at zeneakademia.hu (Hungarian language only). Saturday, December 2, 2017, 7:30 p.m. Academy of Music Great Hall 1061 Budapest, Liszt Ferenc tér 8.
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Old Friends and new old Trends in Hungarian Wine It is now more than a quarter of a century since the Hungarian wine industry started the slow transition from quantity to quality. ROB SMYTH
While this is a really short time in the history of fermented grape juice, good progress has nevertheless been made with Hungarian wine as producers have got a better handle on everything from how to get the best out of indigenous grape varieties and work out what makes the often terrific Hungarian terroir tick, to how to handle the various wine technologies and tools at their disposal (i.e. use of oak). Pajzos, a French-owned producer from Sárospatak in the Tokaj wine region, has just celebrated its 25th anniversary, with
the current owner admitting it has been a rocky, yet rewarding ride. “The first 15 years were not easy; not technology wise, but because there were too many products,” said Jean-Louis Laborde, who was one of a dozen founding investors but is now the sole owner.
Indeed, these were the days of Aszú wines numbered 3,4,5 and 6, as opposed to the current 5 and 6 puttonyos, as well as Aszúeszencia (the middle ground between Aszú and the honey-like free-run Eszencia juice of aszú grapes with its low alcohol and über high sugar), Fordítás (from the
second pressing of the Aszú grapes) and Máslás (from the marc of aszú grapes), among others. Note that Tokaji Aszú is made by steeping the botrytised, noble rot afflicted grapes in a base wine. “Aszú is the peak, but we need more than Aszú to live from, and after 15 years
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Művészeti Szalon és Kávéház 1052 Budapest, Szervita tér 5. Jegypénztár: 06-1-266-8337 jegy@rozsavolgyi.hu www.szalon.rozsavolgyi.hu
1036 Bp., Kiskorona u. 7. Phone: +36 1 2500288 Ticket: obudaitarsaskor.hu jegymester.hu
MOZART: DON GIOVANNI Semi-staged opera Budapest Strings Directed and conducted by György Philipp Commendatore: Béla Laborfalvy-Soós Don Giovanni: György Philipp Leporello: Lóránt Najbauer Donna Anna: Viktória Denk Don Ottavio: Donát Varga 11th January, 7 p.m. MY FAVOURITE THINGS –Andrea Szulák (vocals) 12th January, 7 p.m. FOUR AUTHORS, TWO PERFORMERS János Másik (piano, guitar, bandoneon, vocals) Ferenc Kovács (violin, trumpet, vocals) 19th January, 7 p.m. HOT JAZZ BAND 27th January, 7 p.m.
Oleksandr Mardan:
ST. VALENTINE’S NIGHT HUNGARIAN DEBUT
Cast: Móni Balsai and Zalán Makranczi Directed by Dániel Dicső PREMIERE: 14 DECEMBER, 2017
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A grand total of HUF 5.356 million was donated, a record for this annual event supporting children in need. We wish you a happy holiday season, and hope you enjoy more success in 2018.
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the use of pesticides and herbicides and such like artificial products, with natural treatments such as copper, sulfur and orange oil used to spray the vines. In a nutshell, while these may not quite totally blast away the bugs and fungal
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“The first 15 years were not easy; not technology wise, but because there were too many products.”
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One of the hottest recent trends in the world of wine, which also applies to Hungary, is the spread of so-called “natural wines”, i.e. wines made without
is based on the work of Austrian social philosopher Rudolph Steiner. It is essentially organic with a bunch of further, seemingly eccentric, extensions tagged on that are deemed highly effective by those who use them. These include treating the vines only at certain times of the lunar cycle and burying manure in a cow’s skull. Like many natural winemakers, Weninger also uses a minimal amount of sulfur in the making and bottling of his wine, which can be one of the factors that account for a certain earthy or barnyard-like note, which is loved by some and despised bylasothers. sifieds • U se ree C •F lR Weninger’s 2015fuhad ev ies OrganicBRed r u d e a iew n p i l e l y s it t is it a n a fair touch of this, but for me u s G t m h • o ink m o also hadc lots of other stuff going in n g juicy sour cherry, pepper on with and green herbs in the mix – with the dab of dirt adding to the overall complexity. The stunning Weninger Syrah 2015 is also soon to hit the shelves and is clean as a whistle, is varietally pure and has a strong sense of place (i.e. from the cool climate and stony soils). It has a y' sL purple-ruby color, medium 001 ea gl 2 din e plus intensity on the nose Ex s ce g • S Sin E x pa s t M e d ia, oak vic w witheraromas of coffee, e • Ne Dspices. resh aily E v e n tIt’s and mixed s • Fgot very nice, vibrant acidity but not that much concentration, yet it’s peppery and full of character. Local O pin ion
Natural Wine Trend Continues
diseases that blight the grapes, they don’t harm the wine and the people who drink it – so the argument goes. The natural wine movement is a kind of backto-basic approach and continues to be as polarizing as it is exciting. The annual “Mitiszol?” (literally “What are you drinking?”) tasting held at Millenáris on November 18 once again served up plenty of unique and sometimes outstanding wines. Nevertheless, a few twists of nature brought about some highly unconventional and unpleasant turns to the flavors, which is indeed what can happen in this minimalintervention school of winemaking. Franz Weninger, an Austrian who makes wine at his family wineries in both Sopron in Hungary and just across the border in the Burgenland, follows the biodynamic approach to winemaking, which
• P r a c tic a
the realization came that a good dry white wine was needed,” said Laborde, the owner not only of a 600-hectare cereal farm in Hungary, but also of renowned Pomerol producer Château Clinet. “There’s a lot of work ahead, not with sweet wines as they are already known all over the world – there are producers of sweet wine in Bordeaux who believe the quality is better in Tokaj. Now, dry wines, especially Furmint can follow,” he said. Pajzos’ T Furmint 2016 was clean and correct, zesty, fresh and fruity with lime peel, pineapple, pear, melon and a touch of nuttiness on the nose and palate, and impressed more than the oakier 2015 version. While Tokaji Aszú is one of the world’s great wines in any category, it is often hard for me to find the right moment to crack open a bottle of this sublime stuff. Pajzos’ Aszú 5 puttonyos 2016 might help find that moment and was indeed the peak of the 25th anniversary dinner, and ’Tis (almost) the season to be jolly anyway!
It is made of Furmint (60%), Hárslevelű (30%) and Sárgámuskotály (10%) with the aszú berries harvested from the end of October to the end of November. Extremely elegant and pure on the nose, full-bodied, rich, round, creamy on the palate, with very nice botrytis but zesty acidity to balance the intensity. It has a really long finish, still fresh as a daisy, and a very nice balance between the residual sugar of 178 g/l and the acidity of 10.8 g/l. [Expect a price range of between HUF 12,000-15,000].
s• p a t L o o p : Wh a t Ph the • “X ot fo re i
“Aszú is the peak, but we need more than Aszú to live from, and after 15 years the realization came that a good dry white wine was needed.”
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Budapest Business Journal | December 1 – December 14, 2017