Pannon University. Elvira Böcskei

Pannon University Elvira Böcskei Analysis of the financial and revenue position of hotels operating in Hungary. Impact analysis of the subsidizing policy of the Széchenyi Plan in relation to the EU subsidies. Key points of PhD thesis Veszprém 2008

Pannon University Doctoral School of Management and Organizational Studies Elvira Böcskei Analysis of the financial and revenue position of hotels operating in Hungary. Impact analysis of the subsidizing policy of the Széchenyi Plan in relation to the EU subsidies Key points of PhD thesis Consultant: Dr. Erzsébet Dimány Veszprém 2008 2

TARTALOMJEGYZÉK 1. THE AIM AND PRELIMINARIES OF THE RESEARCH...4 2. THE RESEARCH METHODOLOGY..5 3. THE STRUCTURE OF THE THESIS..8 4. THE KEY POINTS OF THE THESIS, THE RESEARCH FINDINGS 9 5. UTILIZATION OF RESEARCH FINDINGS 16 6. PUBLICATIONS AND APPLICATIONS RELATED TO THE TOPIC OF THE DISSERTATION...17 3

1. THE AIM AND PRELIMINARIES OF THE RESEARCH The enlargement of the European Union has palpably entailed certain structural changes. Among the relatively well-off tourists of the EU member countries the services offering a high added value (ie. various experiences on a high quality standard) enjoy ever greater popularity. With the appreciation of health care, and considering our natural resources, this might lead to a competitive advantage for Hungary. In the recent period in Hungary tourism has directly contributed 4.6 pc to the GDP, while its indirect contribution was 7.8 pc 1, which itself is an indication that it must be given extraordinary attention in National Development Plan II. The consequence generally expected of the dynamic develpopment of tourism in the future is the rise in the number of people employed, which might accelerate closing up to the EU average in the rate of employment, one of the decisive factors of the convergence processes. In the financing policy of the European Union, there have been separate funds allocated for supporting sustainable tourism. This subsidy may create an opportunity for some of the less developed regions, otherwise favourite tourist destinations, to turn their revenues from tourism into a chance for catching up. The Eu plans its development programs broken down into seven-year cycles. From this it follows that at the time of its accession to the integration Hungary had to prepare its domestic development program to fit into the 2000 2006 planning cycle. The development of tourism featured as an independent priority in the Regional Operative Program, within the framework of the National Development Plan. The priority titled Strengthening the Tourism Potential aimed at directly developing the sector through increasing the competitiveness of tourist attractions and the development program of tourism-related services 2. In the second seven-year cycle, the Development Plan determining the developments in the period 2007-2013, the tourist sector can expect 235 bn forints worth of subsidies. This amount means an annual fund of 31 bn forints, which, completed with the domestic co-financing, may mobilize, according to the plans, over 660 bn forints of private capital over the seven-year period. Thus, by 2013, there is a chance that the tourist industry will be able to achieve a total of 1,100 bn forint development, including other domestic sources, as it had been planned in the strategy 3. 1 Satellite accounts of Hungary s tourism (2004, pp. 47) 2 The document titled Regional Operative Development Program and the Program Supplement to the Regional Operative Development Program 2004-2006 includes the aims financed from the Structural Funds and the related activities that are to be subsidized. 3 The Government accepted the National Tourism Development Strategy (NTS) on September 28, 2005. Regarding its aims and priorities it consistently linked with the ideas of developmental policy, thus what is laid out in NTS will serve as the basis for the tourism development between 2007-2013. The implementation of NTS, in terms of ensuring its central financial budgetary sources, mainly relies on the subsidies arriving from the Structural Funds of the EU. 4

It must not be forgotten that the subsidies can merely create the possibility of development, but it requires the creation of the viable conditions and the selection methods for subsidization. The harmony between planning and implementation requires the timely application of feedbacks. Special attention must be paid to exploring the effective mechanisms of developments, the necessity of using different measurements of performance, which can help to recognize and eliminate the so-called bottlenecks. It cannot be the aim to draw down the funds at any rate, they must be utilised efficiently, for developments that are harmonized with the aims of the economic policy. The recent years have seen the implementation of large-scale investments whose success can only be proven in the coming years. The current thesis aims to analyse the efficiency of health tourism investments funded from government subsidy and implemented between 2002-2004, and, through the above, contribute to the efficient utilization of the EU subsidies. In order to enhance the competitive investment and operational conditions of Hungarian hotels, I have examined the developmental tendencies of over 10 years (1995-2006) in the hotels star classification system. 2. THE RESEARCH METHODOLOGY Primary research began in 2005 4 with the analysis of the tenders declared within the framework of Health Tourism Ten Year Development Program as part of Széchenyi Plan. In the initial phase of the research we were faced with the fact that the questionnaires previously sent out were only partly suitable to objectively measure the efficiency of the completed investments. The questionnaires sent back by the clients were mostly filled in incompletely, and in many cases the values were determined in a way contradicting the basic logical principles ( eg. the balance sheet profit or loss figure was given differently in the profit and loss account and in the balance sheet of the given year, etc.). Furthermore, some of the clients failed to meet their data supply liability, which arose from the fact that the bidder and the operator were different persons (the support contracts allowed it all). The data necessary for the objective analysis were not available, therefore in March 2006 a new impact analysis questionnaire was worked out.i was commissioned by the Hungarian Bureau of Tourism with the comprehensive efficiency study of the high value touristic investment projects announced in the framework of the Széchenyi Plan, thus I worked out the questionnaires, sent them out, and processed them as well, as part of my own research program. The questionnaires were made available to the clients both in a paper- 4 The research was conducted by the author on behalf of the Hungarian Bureau of Tourism. 5

based form and electronically (by email). Accessibility by telephone had a positive effect on the objectivity of data entered in the newly distributed questionnaires. As for the hotels examined, the impact study questionnaire sent out comprised five areas:economic data and indicators, data referring to the investment, data referring to the hotel, the guest turnover, data on health tourism services, data on future prospects. Besides the information obtained from the questionnaires sent back, the material gained from the in-depth interviews was also utilized in analyzing the economic effects 5. Works on the hotel construction were completed in 2002-2004, so, in favour of the comparability of data, the year of putting into operation (the basic time data) and the data of the subsequent years were analyzed. The use of statistics was necessary because of the comparability, where, besides the micro-environment, it was also inevitable to provide information on the characteristics of the given region. In order to get an overall picture of the management of Hungarian hotels, it became inevitable to examine them with regard to wealth, financial management and profitability. One of the factors determining the period we are analysing was the Law XVIII on Accountancy of 1991, effective since January 1, 1992. One of the indispenable conditions of the transition to market economy was a law complying with the Hungarian traditions as well as with the internationally accepted accountancy standards. Though the stipulations of the law complied with the major EU directives relating to accountancy, it was repeatedly modified as a result of the necessity to permanently adjust to the requirements of the market economy 6. The full compliance with the EU directives required the recodification of the repeatedly modified Act on Accountancy 7. It is necessary to emphasize that the aim to ensure a reliable and realistic picture of the wealth, financial and revenue position of the enterprise - and the basic accountancy principles laid down in the law have not been altered. Considering the above-mentioned changes, I chose 1995 to be the starting point of the analysis, as in the first years following the enactment in 1992 the reliability of the specific corporate data was questionable, due to the lack of a uniform interpretation of the accountancy regulations and the large-scale changes. The specific corporate statistical data necessary for the investigation were provided by Ecostat Research Institute. The data made available included the complete data stock of all companies operating in Hungary and dealing with tourism, from which we had to select the data referring to hotels, and from them we had to generate another data base. Neither in the domestic, nor in the international literature 5 In the current study only the direct effects are presented. The examination of the indirect and the induced effects may lead to further research. 6 Modifications of Act XVIII on Accountancy of 2001: Act LXX of 1992; Act XCII of 1993; Act IC of 1993; Act CVIII of 1993; Act XX of 1995; Act CXV of 1996. 7 Act C of 2000 on Accountancy. Its modifications: Act IV of 2006; Act CIX of 2006; Act CXXXI of 2006. 6

have I come across similar research before, thus in the process of setting up the database I had to rely, aside from the methods applied in accountancy, also on information obtained while doing in-depth interviews with senior hotel executives as well as on experience acquired from the research into the Széchenyi Plan. While systematizing the data, I had to pay attention that the huge quantity of specific corporate data should be made suitable for comprehensive analysis as well as for determining individual attributes. This way, it took me several years of research work to be able to set up the database that is now suitable for the final analysis. Setting up the database was followed by aggregating the data, by calculating the averages, and further statistical calculations.then, following the aggregation of the data, came the calculation of the averages. So that this can be done, it is necessary to classify the hotels in star categories 8 and to review this categorization every year, so that changes are monitored and data bases are updated. Thanks to the developments in the past years, more and more hotels met the requirements of the higher star categories. Besides the star-based categorization, hotels were also classified by regions, regarding that in some cases the head office and the place of operation were different. Considering the large data-base, the indicators were calculated nationwide. The data had to be systematized, while at the same time maintaining the quantitative and qualitative standards required of them. To explore the outliers 9 I applied the box-plot technique. The rate of three- four- and five-star hotels among those examined reached 45 pc, thus the analysis can be considered representative. Through analysing the balance sheet and the profit and loss data of Hungarian hotels, I have examined the developmental tendencies of over 10 years (1995-2006) in the hotels star classification system. I paid particular attention to applying and working with indicators that best characterize the specific features of the hotel industry. Analysis focuses on three welldistinguishable areas: analysis of wealth position, examination of economic efficiency, presentation of profitability. Aside from the methods of descriptive statistics, I also applied variance analysis to find out whether the is any significant correlation between hotels classified into different starcategories and their efficiency and profitability. 8 The categorization of commercial and paying guest accomodations and the qualification of rural accomodations is regulated by the IKIM Decree 45/1998 (June 24). 9 Outliers are the extreme values that show significant deviation from the other values, ie. those situated far from the middle of the distribution. 7

3. THE STRUCTURE OF THE THESIS The first part of the thesis discusses the financing policy of the European Union. Following a historical overview of the regional policy comes the detailed presentation of the different forms of support by the structural funds. Aside from reviewing the targets subsidized by the structural funds, the role of tourism in the support policy is also emphasized. The aid or action programs complementing the operation of the structural funds are also mentioned, with special focus on their role in tourism. The chapter ends with the discussion of the EU s budget. The second part is devoted to the support policy of Hungary. In addition to the efficient utilization, it must also be ensured that the amounts received are used with a mutually acceptable, transparent settlement. Transparent settlement includes strict compliance with the rules of accountancy. Thus a separate chapter (Chapter 5) deals with the settlement of the accounts of non-refundable subsidies. Setting up the hypotheses (Chapter 6) is followed by the description of the research methodology (Chapter 7). The third part of the thesis (Chapter 8) outlines the support policy of the Széchenyi Plan. Széchenyi Plan was a forerunner of the subsidies to be received from the EU s structural Funds, as in planning the programs it was also taken in consideration that they could also be launched as an operative program. The thesis discusses the examination findings of the tenders announced between 2002-2004 within the framework of the Health Tourism Ten Year Development Program. The fourth part of the thesis presents the most important data referring to the hotel and other commercial accomodations in the member states of the EU (Chapter 9), comparing them with the data of similar services in our country. The following chapter analyses the economic efficiency of the hotels operating in Hungary. Through analysing the balance sheet and the profit and loss data of Hungarian hotels, I have examined the developmental tendencies of over 10 years (1995-2006) in the hotels star classification system. The final part of the thesis contains the verification of the hypotheses based on the findings of the completed research. 8

4. THE KEY POINTS OF THE THESIS, THE RESEARCH FINDINGS The analysis of my hypotheses has produced a positive result in every case, thus on the basis of the proven hypotheses the following conclusions can be drawn. THE CONCLUSIONS OF THE THESIS: Conclusion 1 Subsidies play an indispensable role in tourism, and, especially, in the development of the hotel industry, also allowing for the fiscal considerations. The building and the renovation of hotels is impracticable relying exclusively on the enterprise s own capital, due to the low profitability of the hotel industry today. I underpin my hypothesis with the results of the efficiency analysis of the hotels built or renovated with the support of the Széchenyi Plan. Wqithin the framework of the Health Tourism Ten Year Development Program six new hotels were built and two were renovated. Of the newly built hotels five met the requirements of the four-star category, while one fell into the five-star category. The average investment cost of the four-star hotels was HUF 2.46 bn, while the only five-star hotel cost HUF 3.24 bn. In view of the high investment costs characterizing the hotel industry today, aprt from the subsidies and the involvement of the builder s own sources, they were also bound to take up sizeable loans. The planned value of the bank loans was HUF 7.77 bn, but in reality the size of the loan turned out to be HUF 8.74 bn. The loans amounted to 56-58 pc of the overall investment costs, which can be considered rather a high rate. In view of this it was not surprising that the running time of the loans was on a scale between 120-191 months. The expiry of the bank loans exceeding 12 years on average seems relatively long but, on top of the rather high loan amount, it must not be forgotten that the return on the investment is very difficult to estimate here. With the newly-built hotels, the net earning is always negative, which indicates that in the years following the investment the hotels work at a deficit. The high tax and payroll tax burden can be mentioned as the main factor of the deficitous management. As a result of the high number of employees, aside from the contribution payments, the tax liabilities go up to a significant measure. Examining the tax liabilities (central and local) and the payroll taxes suggests that the return on investment costs in the case of the newly-built hotels is as much as 26 years, provided that the current conditions (rate of capacity utilization, room rates etc) remain constant. At the same time the subsidy accounting for over 17 pc of the investment costs is expected to show return in 4.5 years, given the above-mentioned payment liabilities. 9

Conclusion 2 Without subsidies, due to the high investment costs, the implementation of the investment is rather risky and might lead to the hotel becoming indebted. this mainly affects five-star hotels. As evidence proving the above statement we can refer to the high investment and development loans of the hotels built in the framework of the Széchenyi Plan on one hand, and to the examination of the property status of the hotels operating in Hungary, on the basis of the star categories. In order to be able to accomplish the investment, the hotels built under the Széchenyi Plan were forced to take up loans amounting to more than 50 pc of the investment. The largest loan was linked to the building of the five-star hotel where the construction cost exceeded the planned expenditure only by 26.8 pc, whereas they spent more than treble of the planned amount on machinery and equipment. The overall finance requirement of the investment exceeded the planned expenditure by 47 pc. To cover the costs they had to take 42 pc more loans than they had originally intended to. 10 In the years following the installation of the hotel, only the interest payment of the bank loan exceeded 2.3 pc of the total investment value. The high interest burden also had its part in the fact that every year of the examined period was finished with a negative balance sheet result. In spite of the budgetary support, the first years following the instalation were not free from financing problems. Beyond the analysis of particular cases, the assets and liabilities structure of the domestic hotel industry was analysed over a period of more than 10 years (1995-2006). In order to be able to qualify the equilibrium between assets and liabilities, the examination also covered to what extent own capital and long-term alien capital served as collateral for the assets invested. In the case of the four-star hotels the collateral was sufficient for financing the instruments with a longer-than-one-year expiration, a backlog was only discernible in the last years. On the basis of the leverage index, the three- and four-star hotels have the most favourable values. With five-star hotels, the most critical periods were the mid-1990s as well as 2002-2003, (2002 was the time when the hotel built with Széchenyi Plan support was built), when the index reached a height which almost questioned whether the enterprise was able to meet its debt liabilities. These findings made further analyses necessary. While examining the net indebtedness, subtracting the accounts receivable from the liabilities shows the rate at which all this is covered by the own capital. The values found 10 2.5 years moratorium, followed by a 20 pc balloon added to the repaid amount annually were stipulated as conditions of the loan repayment. 10

confirmed the findings of the previous analyses, that the indebtedness of five-star hotels was around the critical value, the own capital no longer covers the liabilities, thus the operation of the hotel is endangered and its survival on the market questioned. Conclusion 3 The non-refundable subsidies granted to the developments ensure reliable and calculable short-term tax and contribution revenues. The return on non-refundable subsidies was also examined both in the case of newly built hotels, both for the existing ones that require reconstruction or development. For newly built hotels, private capital activated with 17 pc state subsidy generated more than HUF 15 bn worth of development, which also created jobs, so the payroll and other tax payments increased the budget revenue. Beyond that, the local governments sources of revenue were also raised. Examining the tax liabilities (central and local) and the payroll tax liabilities it turns out that the investment costs of the newly built hotels get recovered in more than 26 years provided that the current conditions (rate of capacity utilization, room rates etc) remain constant. At the same time the subsidy accounting for over 17 pc of the investment costs is expected to show return in 4.5 years, given the above-mentioned payment liabilities. Under the support program of the Széchenyi Plan there were two hotels renovated one of them three-star, the other a four-star hotel. The reconstruction of medicinal and wellness hotels relied on three main sources: non-refundable development subsidies, bank loans and own sources. In the case of the renovated hotels, in view of the extra tax liabilities (business and other local tax liabilities) and the additional payroll taxes, the subsidy got recovered in two years, while the total renovation cost is expected to be recovered in more than 8 years provided that the existing conditions ( room capacity utilization rate, room rates etc) are constant). Conclusion 4 The appreciation of health tourism has become a key factor in Hungary s touristic supply, the hotel industry based on thermal springs may become a booster industry of the country. The literature suggests that such objectives can best be served by newly built investments with a slow return. Under the domestic conditions, however, developing the existing facilities can be the more effective, suitable solution. 11

The support policy of the Széchenyi Plan shed light on the fact that building a hotel requires an investment of several millions, while the return on the investment may take decades. Tourism cannot be assessed only by way of numbers, the natural resources, the location and the cultural values must not be ignored. But there must be an indicator, a unit of measure that can answer the question whether it is worth accomplishing new large-scale investments. To answer the question, I compared the database of domestic hotels and commercial accomodation with the figures of some EU member countries. Apart from the countries of the top 11, the data of Slovakia and Slovenia were analysed in relation to the number of guest nights spent in commercial accomodation. As for the utilization rate of hotels and accomodations, their number per square kilometre was examined. In the case of Hungary the figure is 0.022 hotel and commercial accomodation, giving us the competitive edge over our neighbouring countries. This figure itself is no sufficient basis to draw any conclusion from, it is also necessary to compare the number of guest nights. The performance of tourism is most often measured with the number of guest nights spent, in which we are preceded by Poland, Sweden and Portugal, although they have less commercial accomodation than we do. Spain and France 11 have just slightly more commercial accomodation capacity than Hungary, but they occupy the second and fourth places on the top list. The number of guest arrivals per hotel or commercial accomodation also seems to prove the hypothesis that the development of the existing hotels must be given priority, as those countries which have fewer hotels and commercial accomodations than Hungary like Poland, Sweden and Portugal have exceeded the Hungarian figures in terms of guest arrivals as well. The same trend can be observed with regard to Spain and France, both having approximately equal numbers of accomodations The hypothesis is supported by the fact that the number of hotels operating in Hungary has dynamically risen in the past decade.while in 1995 the number of registered hotels was 567, as a result of a nearly 47 pc increase, by 2006, 837 hotels were available for the tourists. A favourable tendency is the shifting toward the higher star categories. While in 1995 only 5 hotels were classified in the highest star category, hardly more than 10 years later this figure has risen 3.4-fold. In the hotels belonging to the highest star category, the rate of foreign guests is dominant, however, we can only partly take advantage of this advantageous situation as according to the statistical surveys the foreign guest turnover is concentrated in just two tourist centres, Budapest and the lake Balaton. 11 France and Spain are the world s first and second tourist destinations respectively, their market share in world tourism is 9.8 and 6.9 pc. Hungary is ranked 18th on the list, its market share being 1.6 pc (Organización Mundial del Tourismo Datos y cifras, Edición [2005] www.world-tourism.org) 12

Conclusion 5 Developing three- and four-star rather than five-star hotels can be the most expedient solution. Considering the property structure and economic efficiency of three- and fourstar hotels, the dynamically growing guest turnover of four-star hotels and the favourable tendency of room capacity utilization are beneficial for the reclassification of three-star hotels into a higher star category. The analysis of efficiency, as well as the property position of the enterprise, is necessary to decide which star category of hotels is worth investing more capital, with regard to the existing supply. The analysis of the property position includes both the examination of the asset structure and the liability structure. The indicators of the liability structure most characteristic from an efficiency point of view can back the statement that developing threeand four-star rather than five-star hotels can be the most expedient solution. During the analysis of indicators of the liability structure, like in examining the asset structure, the analysis comprises tendency-like changes.as for the proportion of own and alien sources, it is not possible to take a clear position as to which value can be considered exclusively acceptable, but the gradual increase of own capital as opposed to alien sources is definitely favourable. In assessing the indicators it must not be forgotten that from the year 2000 on there were large-scale developments in four-star hotels, and by 2006 their number doubled to reach a nationwide 16 pc ratio. Investigating the wealth structure by the star classification of hotels it can be stated that the ratio of own capital is lowest in five-star hotels (30 pc), while in three- and fourstar hotels the values are over 50 pc. The rate of own capital in each star category showed a steady growth till 1999, but from 2000 the ratio began to decline. The reduction was most conspicuous in five-star hotels, here the ratio of own capital in 2002-2003 fell back to half. In the case of the five-star category the hotels operated at a deficit in more than half of the period examined (7 yerars). The biggest loss was produced in 2003 (HUF 641 mn), which goes back primarily to the low guest turnover of the newly built hotels. While further analysing the structure of own capital we also analysed the accumulated profit reserve (this index shows the ratio of profits and losses made in the past years and own capital). This showed the worst value for five-star hotels, the value was negative for the whole period examined. The index was the most favourable in four-star hotels, which indicates successful management in the long run. For making a judgement about the success or failure of an enterprise, aside from examining the property structure, the economic efficiency analysis is also indispensable. It is typical of the hotel industry that more than 90 pc of their total revenue comes from the net sales turnover, so examimning the revenue positions is essential. 13

The sales revenue per unit of asset shows to what extent the enterprise utilizes its assets, how many revolutions the assets make in the realized net sales revenue over a given period. The best values were realized by three-star hotels, realizing on average 55 forints on 100 forints fixed assets. The rate of return shows the lowest value in five-star hotels. The reason for this lies in the very valuable stock of tangible assets. The analysis of the property structure made it visible that the stock of assets significantly varies by star categories. The number of revolutions of own capital shows how many times own capital is recovered from the sales revenue. The invested capital per unit shows an outstanding value in 2002 and 2003. Given the capital structure of five-star hotels, this cannot be regarded as a clearly positive result. While in three- and four-star hotels both the net sales turnover and own capital show a dynamic increase, five-star hotels, on the contrary, show significant fluctuation. The relatively favourable values of three-star hotels can be explained by the fact that they have low own capital, and, save the first two years of the period examined, their balance sheet shows positive results every year. In their tendency three-star hotels show a balanced performance, and the same characterizes four-star hotels as well. The net sales turnover of three- and four-star hotels increases steadily, while in five-star hotels revenues completely reflect the room utilization rates of the past 11 years. The costs poritions show the same tendency, the only difference being that the fluctuation of costs is much lower than that of revenues. Typical of the cost structure of hotels is the fact that they have relatively high overhead costs, so the number of guests and the guest nights spent are decisive from the aspect of efficiency. The analysis of sales turnover per unit cost examines the ratio of sales revenues and costs. The index shows the sales revenue attainable with the maximum cost, ie. how many units of sales revenue the enterprise can achieve on a unit of inputs. The pace of revenue increase lags behind the pace of the increase of expenditure, thus the value of sales turnover per unit cost has worsened. The largest degree of deterioration could be observed with five-star hotels, but as a positive fact, from 2004 on a slight improvement can be experienced. The sales turnover per unit of profit shows how many forints worth of sales revenue are needed to realize 100 forints of profit. The index only makes sense if the balance sheet figure is positive. Therefore, the trading profit has been chosen as the instrument of the analysis. The value of the index is favourable when it shows the least possible value. In the case of four-star hotels the value of the index, until 1999, was evenly low in the period between 1995-1998 and later between 2001-2003 it showed a more favourable value than the five-star hotels ie. sales revenues increased more dynamically than costs and expenditures. Five-star hotels showed better results than four-star hotels in 1999, 2000 and from 2004 on. 14

The fluctuation of sales turnover per unit of profit can be traced back to the same reasons as the sales turnover per unit cost. Conclusion 6 An essential condition of profitable hotel manegement is shifting toward high quality service. Given Hungary s resources, it is mainly possible in four-star hotels, rather than in lower or higher star categories To prove our statement we overview the most characteristic indicators of the hotels management. In analysing the revenue position of hotels, the profit figures and the factors influencing it were examined. The analysis by profit per unit sales turnover determines what percentage of the trading profit is derived from the net sales turnover and other revenues. The analysis of the property structure led to the conclusion that real estate accounts for rather a high proportion of the hotels asset value, which made it necessary to also calculate the EBITDA index, which ignores the profit-reducing value that arises from the depreciation of assets. Though the index shows a decreasing value in four-star hotels, but on the whole the picture is more calculable, thus more favourable than five-star hotels. In five-star hotels the least drop in gust turnover leads to a radical drop in profits. A positive fact to be underlined can be that in the last years of the period examined they have been managing the hotel profitably, so they could show the best results. Compared with profit per unit sales turnover, both profitability per unit of assets and profitability per unit of capital show a worse picture, since in the case of these indexes the trading profit served as base for comparison. In the case of profitability per unit of assets the pre-tax profit must be compared with the assets, while in the case of the assetrecovery index we should use the profit reduced by tax payment. In the case of profitability per unit of capital the after-tax profit or the balance sheet profit must be compared with own capital in order to find out how much the former contribute to the increase of own capital. Compared with profit per unit sales turnover the biggest deviation can be experienced in five-star hotels, which can be traced back to taking an extremely large bank loan, whose interest burden has a severe impact on profitability. They spend nearly 13 pc of their total revenue on inerest payments, thus it is not surprising that the five-star hotels, which are the most sensitive to the slightest changes in guest turnover (and, within that, foreign guest turnover), produced negative results in more than half of the years examined. 15

The profitability of three-star hotels shows an even performance due to the graduality in the accomplishment of the reconstruction works and the surge in domestic tourism, which also favoured three- and four-star hotels. Four-star hotels finished each year with positive after-tax profit figures over the whole period examined. From 200 on, the signs of structural change are well discernible. Though in consequence of the hotel constructions and reconstructions their profitability fell back, but from 2006 on the first signs of the upswing are already visible. My hypothesis was also supported by the economic efficiency and profitability examination carried out with the help of variance analysis. There is significant correlation between the classification of hotels into different star categories and efficiency on one hand and profitability on the other. In the case of four- and five-star hotels this correlation no longer exists, so it is justified to increase the number of fourstar hotels, rather than five-star hotels. 5. UTILIZATION OF RESEARCH FINDINGS No research of this kind has been conducted in Hungary so far, therefore the research findings can contribute to the efficient development of the tourist trade sector, and to the successful utilization of the subsidies arriving from the European Union. Moreover, it can also enrich the study material of tourism courses of higher education institutions. 16

6. PUBLICATIONS AND APPLICATIONS RELATED TO THE TOPIC OF THE DISSERTATION Own publications related to the topic of the dissertation 1. Böcskei Elvira [2002]: Az újrakodifikált számviteli törvény különös tekintettel a mérlegkimutatásra. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 6. szám, pp. 109-119. 2. Böcskei Elvira [2003]: A globalizáció és az EU csatlakozás hatásai a hazai számvitelre. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 9. szám, pp. 85-89. 3. Böcskei Elvira [2003]: Mérlegkészítés IAS standardok alapján. IIR Tanulmány, Budapest, pp. 1-101. 4. Böcskei Elvira [2004]: Számviteli dilemmák. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 11. szám, pp. 19-26. 5. Böcskei Elvira [2005]: Nagy esély a kis- és közepes vállalkozásoknak. A vissza nem térítendı fejlesztési támogatások elszámolása. Számvitel-Adó- Könyvvizsgálat, Budapest, 2005/1, pp. 22-26. 6. Böcskei Elvira [2005]: A magyar kis- és közepes vállalkozások a kibıvült Európában források és versenyképesség. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 12. szám, pp. 39-56. 7. Böcskei Elvira [2005]: Vállalkozásfejlesztés és e-business a kis- és középvállalkozások számára: Egy oktatási projekt háttere és tapasztalatai. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 13. szám, pp. 141 146. 8. Böcskei Elvira [2005]: Szakmai továbbképzések szükségessége a KKV szektorban. Humánpolitikai Szemle, 16/10, pp. 49-57. 9. Böcskei Elvira [2005]: A versenyképességet hátráltató tényezık vizsgálata a KKV szektorban. Tanulmánykötet, Akadémiai Kiadó, Budapest, pp. 9-22. 10. Böcskei Elvira [2005]: Szakmai továbbképzések jelentısége a versenyképesség szemszögébıl vizsgálva. Keszthely, CD-ROM kiadvány. 11. Böcskei Elvira [2005]: A kis- és közepes vállalkozói szektor finanszírozásának aktuális kérdései. Fenntartható gazdasági növekedés Konferencia, Budapest, 2005. szeptember 1-2. Budapesti Mőszaki és Gazdaságtudományi Egyetem, CD- ROM kiadvány. 12. Böcskei Elvira [2006]: A támogatások számviteli elszámolása. PályázatVadász, 4/1, pp. 49-53. 13. Böcskei Elvira [2006]: Banki finanszírozás kihívások és lehetıségek. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 14-15. szám, pp. 97-107. 17

14. Poór Judit - Fehér Helga - Böcskei Elvira [2006]: Változások a kereskedelempolitika eszközök terén avagy hogyan hatott az uniós csatlakozás Magyarország kereskedelempolitikájára. Közgazdász Fórum (Romániai Magyar Közgazdász Társaság és a Babes Bolyai Tudományegyetem Közgazdaság- és Gazdálkodástudományi Kara magyar tagozatának közös szakmai közlönye, 9/11. (58) pp. 33-45. 15. Böcskei Elvira [2006]: A hazai turizmus versenyképességét szolgáló támogatások. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 16. szám, pp. 99-110. 16. Böcskei Elvira [2006]: A hazai turizmus versenyképessége a támogatások tükrében. Mór, 2006. május 31., CD-ROM kiadvány. 17. Böcskei Elvira [2006]: Kis- és közepes vállalkozások fejlesztési szándékai és lehetıségei az Európai Uniós csatlakozást követıen. Pannon Gazdaságtudományi Konferencia, Veszprém, 2006. június 02. 18. Böcskei Elvira - Fehér Helga [2006]: Termálfürdık fejlesztésének tapasztalatai, jelentıségük az adott régióban. Keszthely, 2006. szeptember, CD-ROM kiadvány 19. Böcskei Elvira [2006]: Gyógy- és wellness szállodák szerepe a vidékfejlesztésben. Keszthely, 2006. szeptember, CD-ROM kiadvány. 20. Böcskei Elvira [2007]: Támogatások a turizmusban: kihívások és lehetıségek. Stratégiák 2007 és 2013 között BGF Tudományos Évkönyv, 2007. 21. Böcskei Elvira - Dimény Erzsébet [2006]: Vissza nem térítendı támogatások hatásvizsgálata. Széchenyi Terv pályázatok Kutatási zárójelentés, ÁVF-MTH 2006. 22. Böcskei Elvira - Kerepesi Katalin - Opitz Éva - Szalay Ibolya [2006]: Az uniós csatlakozás hatása a magyarországi kis- és közepes mérető vállalkozások versenyképességére, különös tekintettel az ICT felkészültségre és a finanszírozási (pályázási) lehetıségekre. Készült az Általános Vállalkozási Fıiskola megbízásából, 2004/04-es számon nyilvántartott kutatási megbízási szerzıdés alapján. Kutatás lezárva: 2006. augusztus 30., pp. 1-334. 23. Böcskei Elvira - Hevesi Krisztina - Papp Ottó [2006]: Vállalkozások kontrolling rendszerének fejlesztése. Készült az Általános Vállalkozási Fıiskola megbízásából, 2004/F-10-es számon nyilvántartott kutatási megbízási szerzıdés alapján. Kutatás lezárva: 2006. november 30., pp. 1-200. 24. Böcskei Elvira [2006]: A vezetıi döntéstámogató rendszer bevezetése problémákkal vagy anélkül? A Controller, Ecovit Kft. 2006. szeptember, pp. 9-11. 25. Böcskei Elvira [2006]: A marketingcontrolling felértékelıdése az információs iparágak piacán. A Controller, Ecovit Kft. 2006. november, pp. 13-15. 26. Böcskei Elvira [2006]: A projektcontrolling szerepe az EU-s pályázati projektek egyes életciklus-fázisainak végigvitelében. A Controller, Ecovit Kft. 2006. december, pp. 9-13. 18

27. Böcskei Elvira [2007]: A projektcontrolling szerepe az EU-s pályázati projektek egyes életciklus-fázisainak végigvitelében (2). A Controller, Ecovit Kft. 2007. január, pp. 11-13. 28. Böcskei Elvira [2007]: A projektcontrolling szerepe az EU-s pályázati projektek egyes életciklus-fázisainak végigvitelében (3). A Controller, Ecovit Kft. 2007. február pp. 7-10. 29. Böcskei Elvira - Szita Balázs [2007]: A controllingrendszer új kihívása bevételoptimalizáció a szolgáltató szektorban. A Controller, Ecovit Kft. 2007. március, pp. 1-3. 30. Böcskei Elvira [2007]: A Yield Managementben rejlı lehetıségek és korlátok CD-rom kiadvány XIII. ITF, 2007. március 22. 31. Böcskei Elvira [2007]: Fellendülı egészségturizmus megtérülı beruházások? XXVIII. OTDK. Közgazdaságtudományi Szekció, Doktorandusz Konferencia, Kiemelt minısítést elnyert dolgozatok. Miskolc, 2007. április, pp. 235-250. 32. Böcskei Elvira - Szita Balázs [2007]: Lean karcsúsító módszer válasz napjaink kihívásaira. A Controller, Ecovit Kft. 2007. április, pp. 4-6. 33. Böcskei Elvira [2007]: Célköltségszámítás a controlling szolgálatában. A Controller, Ecovit Kft. 2007. május, pp. 1-4. 34. Böcskei Elvira [2007]: Számviteli és controllingfeladatok az önköltségszámítás kialakításakor (1). A Controller, Ecovit Kft. 2007. június, pp. 3-6. 35. Böcskei Elvira [2007]: Finanszírozható források: esélyek és lehetıségek a turizmus szektorban. II. Pannon Gazdaságtudományi Konferencia, Veszprém, 2007. 36. Böcskei Elvira [2007]: Számviteli és controllingfeladatok az önköltségszámítás kialakításakor (2). A Controller, Ecovit Kft. 2007. július-augusztus, pp. 1-5. 37. Böcskei Elvira [2007]: A vállalkozások eredményének változására ható tényezık vizsgálata és azok számítási módszerei. A Controller, Ecovit Kft. 2007. szeptember, pp. 1-4. 38. Böcskei Elvira [2007]: A termelési érték változásának minıségi mutatószámokkal való controllingvizsgálata. A Controller, Ecovit Kft. 2007. október, pp. 5-7. 39. Böcskei Elvira - Szita Balázs [2007]: Benchmarking a controlling költségtervezés döntési folyamatának kapcsolatában. A Controller, Ecovit Kft. 2007. november, pp. 1-4. 40. Böcskei Elvira [2007]: A bevételoptimalizálásban rejlı lehetıségek, alkalmazásának feltételei a szállodaiparban. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 18 szám, pp. 79-86. 41. Böcskei Elvira [2007]: Finanszírozható egészségturizmus? Fejlesztés és finanszírozás, MFB RT., Stratégiai Tanácsadó Testület, 2007/3., pp. 63-70. 19

42. Böcskei Elvira - Dimény Erzsébet [2007]: Számvitel alapjai önálló tanulást támogató segédlet (HEFOP BSc jegyzet). Általános Vállalkozási Fıiskola, Budapest, 2007. pp. 1-275. 43. Böcskei Elvira - Dimény Erzsébet - Hevesi Krisztina - Papp Ottó [2007]: Controlling alkalmazása vállalati környezetben (HEFOP BSc jegyzet). Általános Vállalkozási Fıiskola, Budapest, 2007. pp. 251. 44. Böcskei Elvira - Dimény Erzsébet [2008]: Viharok és kérdıjelek a kerettervezés területén a Beyond Budgeting modell koncepciója. A Controller, Ecovit Kft. 2008. április, pp. 6-8. 45. Böcskei Elvira [2008]: Hagyományos kerettervezési módszerek alkalmazása. A Controller, Ecovit Kft. 2008. május, pp. 4-6. 46. Böcskei Elvira [2008]: Stratégiát támogató kerettervezés: a Better Budgeting modell létjogosultsága. A Controller, Ecovit Kft. 2008. június, pp. 1-3. 47. Böcskei Elvira [2008]: Vezetıi számvitel a controlling szolgálatában a vállalkozás vagyoni helyzetének elemzése. A Controller, Ecovit Kft. 2008. júliusaugusztus, pp. 1-8. 48. Böcskei Elvira - Szita Balázs [2008]: Hatékony költségtervezés gazdaságosabb mőködés: egy hazai fürdı példája. Tudományos Közlemények, Általános Vállalkozási Fıiskola, 19. szám, pp. 177-187. 20