Page 51 - CE Outlook Regions 2023

against Ukraine has dealt a fresh blow to recovery prospects. After
Russia's invasion of Ukraine on February 24, approximately seven out
of 10 foreign customers who were planning a trip to the Baltics
cancelled it.

The Baltic governments were doing a lot though to convince foreigners
that the Baltics were a safe destination. The Estonian Hotel and
Restaurant Association says that in most cases group bookings were
cancelled, and individual bookings were more frequent.

Yet, compared to the COVID-struck 2021, 2022 saw more tourists in the
Baltics. The seaside municipalities did relatively better in 2022.

The war has drastically affected the cruise passenger sector in the
Baltic ports of Klaipeda, Tallinn and Riga, which, in 2022, saw on
average 20% fewer cruise ships, when compared to the pre-pandemic
level.

The security problem in 2023 will remain highly relevant across the
Baltic Sea Region, where travelling is to a large extent based on the
maritime sector.

3.3 Real economy - Hungary

3.3.1 Retail

Household consumption is set to decrease in 2023 from a projected
4-5% growth in 2022 as household income will be eroded by high
inflation and rising food and energy prices. The minimum wage

51 CE Outlook 2023 www.intellinews.com