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Szigetvár

Szigetvár is a small town located in the western part of Baranya County, with an industrial-logistics-economic focus.

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Szigetvár

Built at the intersection of two main roads, the settlement, which has very favorable logistical conditions, is home to dozens of successful businesses and welcomes new investors with favorable conditions.

Transport and logistics

Szigetvár is situated in a very convenient location in terms of transport, at the south-western foot of the Mecsek Hills. Two main roads meet here: the 6, which links Pécs with Barcs, and the 67, which leads to Kaposvár. However, the town’s layout is not ideal due to through traffic. The residential area to the east of the castle is in a more favourable position, as it is enclosed by the two main roads in a triangle, meaning that through traffic bypasses the residents living there. To the west of the castle, however, the 6 main road cuts right through the residential area.

The county town is 36 km away. Access is straightforward, as you can travel almost in a straight line along Main Road 6. The section of the route closer to Pécs has recently been renovated and is in good condition, whilst the stretch between Szentlőrinc and Szigetvár is of acceptable quality. Kaposvár, the county town of neighbouring Somogy County, is not much further away, at a distance of 41 km.

The nearest point on the motorway network is the recently upgraded Route 67, the Kaposvár end of which is 40 km away. The Pécs-Nyugat junction of the M60 motorway is a similar distance away, 41 km. Medium-term transport development plans include extending the motorway to Szigetvár and, in the future, to Barcs: in this case, Szigetvár will have its own junction.

The nearest border crossing towards Croatia is between Barcs and Trézenföld, 36 km away.

Railway line 60, running from Pécs to Nagykanizsa, passes through Szigetvár. The main line to the capital branches off northwards at Szentlőrinc, so only trains heading towards Barcs–Nagykanizsa stop here. Nevertheless, dozens of train services run in both directions every day, making the railway suitable for daily commuting from the villages along the line. Szigetvár station has the necessary infrastructure to enable even large volumes of goods to be transported by rail to customers from here.

In terms of local bus services, Szigetvár is an important hub due to its central location. On the one hand, express services between Pécs and other major cities in Transdanubia (Kaposvár, Zalaegerszeg, Szombathely, Veszprém) stop here; on the other hand, buses serving the villages in the region depart from here. The standard and frequency of services are adequate; the town centre can be reached within an hour from every settlement in the district without the need to change buses. The conditions for daily commuting to work from these villages are therefore well catered for.

Local services in Szigetvár are operated by Volánbusz. The buses run to the more populous suburbs, such as the Szent István housing estate, and to villages that are distant from the town centre but administratively belong to it (Becefa and Zsibót), at times tailored to the start of work and school. The average utilisation rate of the 8,909 annual services is 14.37%.

Infrastructure and public services

Szigetvár is characterised by an attractive townscape, with the mostly well-maintained buildings of the historic town centre complemented by small but well-organised housing estates and more extensive suburbs of detached houses. The condition of the road network within the town is satisfactory, and the roads in residential areas are all paved.

Drinking water supply and wastewater treatment are provided by Baranya Víz Zrt., which manages its operations from the local plant management office.

District heating is available in the town, provided by Szigetvári Távhő Nonprofit Kft., a company owned by the local council and operating its own heating plant.

The town is the centre of the Szigetvár district, which comprises 45 settlements and has a population of around 24,000. The district office offers a wide range of administrative services to the public. It houses departments for public administration and child welfare, employment, food chain safety and animal health, as well as public health, a land registry office and a government service centre.

The National Chamber of Agriculture maintains a village agronomist’s office in the town.

The town offers a wide range of healthcare services. Primary care is provided by several districts covered by general practitioners, paediatricians and dentists. The town’s hospital has fourteen wards and dozens of specialist clinics. Among other things, there are surgical, intensive care and maternity wards on site, and virtually every medical discipline is available in the form of outpatient care. The institution is well equipped with diagnostic tools, including its own CT scanner. Some of the neurorehabilitation departments admit patients from across the country. In 2019, the hospital’s 416 beds operated at a 72.85% occupancy rate.

Szigetvár has a crèche, three nursery schools (with 314 pupils), two primary schools (with 749 pupils) and several secondary schools. In addition to its own art school, the primary schools also offer art education; for example, singing and music education has traditionally been a strong focus at the Dél-Zselic Tinódi Lantos Sebestyén Primary School. At the secondary school named after Miklós Zrínyi, on the one hand, grammar school classes following a traditional curriculum are offered. On the other hand, three- or five-year vocational courses are offered, primarily in commercial and healthcare professions. There are 106 students in the grammar school and 305 in vocational training.

The town, together with a further sixty-five local authorities and roughly the same number of companies and entrepreneurs, is a member of the Synergy Association, established to implement Leader projects. The primary aim of this collaboration is to organise grant applications that help local producers access markets and exploit tourism opportunities.

The Szigetvár Local Community CLLD (Community-Led Local Development) programme is also linked to Leader. The essence of the approach is that action groups reflecting the composition of local society define, within a local development strategy, the objectives important to the community and the resources that can be allocated to them within the available framework. This bottom-up approach strengthens local communities and enables a more effective response to the needs of the civil and business sectors.

Key economic players

Szigetvár’s economy is primarily focused on industry and logistics, with several companies generating billions in turnover operating in these sectors. There are no large corporations in the town; the most common are medium-sized enterprises employing between 50 and 150 people. A total of 931 businesses operate in the town, including 387 companies and 544 sole traders.

Alongside manufacturing and production companies, there are businesses active in agriculture as well as in trade and services: from an employment perspective, for example, food chains are particularly noteworthy.

Tourism is an important sector of the economy: alongside the nationally renowned castle and the monuments from the Turkish era, the lido and, in early autumn, the events of the Zrínyi Days attract large numbers of visitors. Guests have access to two three-star hotels and 12 restaurants and cafés.

Without claiming to be exhaustive, here are a few examples of the major businesses in Szigetvár:

  • Schenk és Társa Kft. – A German-owned company specialising in fruit and vegetable processing and canning.
  • Iron-Tech Zrt. – A Hungarian-owned company specialising in metalworking and the manufacture of components for the engineering and automotive industries.
  • Trust Hungary Zrt. – An international company with American backing specialising in the manufacture of wooden barrels.
  • Szigetvári Hús Kft. – A Hungarian-owned company specialising in meat processing and the wholesale and retail trade of meat products.
  • Györei és Társa Kft. – A Hungarian-owned company engaged in road freight transport and warehousing.
  • Agrosziget-Chem Kft. – A Hungarian-owned company engaged in the trade of chemical products.
  • Jankó Faipari Kft. – A Hungarian-owned company specialising in the manufacture and distribution of wooden doors and windows.
  • Hőszig Kft. – A Hungarian-owned company specialising in the manufacture and distribution of thermal insulation and other glass products, as well as the manufacture of steel structures.
  • Manifaktor Kft. – A German-owned company specialising in the manufacture and repair of shoes.
  • Eszta-Morison Kft. – A Hungarian-owned company manufacturing uppers for women’s shoes.
  • Szeszico Kft. – A Hungarian-owned company specialising in greenhouse vegetable cultivation and ornamental plants.

Areas designated for economic purposes

Szigetvár has several areas suitable for commercial development – both municipally and privately owned. There is currently no industrial park in the town; business premises are clustered in several hubs, encircling the town like a ring. For example, various businesses operate south of the railway, alongside the road leading to Hobol, between Hoboli Road and the A6 main road, in the triangle where the A6 and A67 meet, and to the north, on Millennium Street.

The local council currently owns 5.2 hectares of greenfield land suitable for lease or sale. Among other things, the plots next to the spa are suitable for new developments.

The Municipality of Szigetvár is the sole owner of a plot of land covering nearly 4 hectares, which, according to the current town planning scheme, is suitable for the construction of a wellness hotel. The site is directly adjacent to the municipally-owned spa and the Almás Stream; beyond the stream lies Szigetvár Castle and the castle park, which spans the size of a city district and surrounds the castle.

The most significant brownfield site is part of the former shoe factory building, which is currently privately owned but available to investors on suitable terms.

The so-called Tenants’ House at 16 Deák Square is owned by a limited liability company owned by the local council. The building, with a floor area of approximately 1,000 square metres, offers offices for rent to businesses.

The market facilitates the rapid and local sale of agricultural produce. The farmers’ market features paved roads, well-developed infrastructure and covered sales areas.

Economic support and tax policy

In Szigetvár, the local business tax rate is set at the statutory ceiling, i.e. 2%.

The relevant regulation sets out several different rates for building tax, with the amount payable ranging from 200 to 1,720 forints per square metre. The highest tax rate applies to businesses engaged in financial services, insurance and gambling, as well as petrol stations.

The land tax rate ranges from 21 to 300 forints, depending on location and function.

The tourist tax levied on accommodation providers is 400 forints per day.

Local authority investments

The current development projects are centred on transport and tourism.

The utilisation of the nearly four-hectare municipal site adjacent to the spa for hotel purposes is a priority for Szigetvár, and the local council is flexible regarding the framework for cooperation, for which it is seeking a financially strong investor.

Among the transport development projects, the two most important are the construction of a roundabout at the junction of Route 67 and József Attila Road, which will improve both traffic flow and safety.

Medium-term plans include the revitalisation of the market and its surroundings and an increase in the number of car parks in the city centre.

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