647 International Journal of Management Cases URBAN RENEwAL IN BUDAPEST: A CASE STUDy oN IMAGE BUILDING, CoMPETITIVENESS AND ToURISM ERIKA SIPoS BUDAPEST BUSINESS SCHooL, HUNGARy Abstract Urban regeneration refers to a complex development process, which can result in solutions to several urban problems. Economic, environmental and social improvements may have a long term character. The image of the district or quarter can be totally repositioned, following physical regeneration of the environment and changes in the population patterns. Developments in tourism can be generated based on hotel and hospitality sector investments. This presentation examines how and in what way large scale residential district development affects attractiveness and economic competitiveness. How tourism activities are developing in a renewed environment and what kind of interdependence can be observed in these process. Empirical research carried out by the author has resulted in new observations related to the opinions of local people. Students having temporary accommodation, placement and activities in the district were also interviewed. The 9th district performs an important role in Budapest tourism, with its several hotels, six colleges and universities as well as through its attractive cultural life. Research, although very limited in scope, has offered some evidence to verify hypotheses that urban renewal regeneration increases people’s pride, self worth and generates a better image, which may in turn create a stronger feeling of identity. This can promote business activity, among others, in the area of tourism services. Key words: urban regeneration, competitiveness, image building, tourism development Introduction According to researchers involved in the science of urbanism, the 21st century will be a time for cities, as the urban way of life is becoming increasingly more the norm. (LICHTENBERGER, E, 10) If we consider the statistics, we can feel the timeliness of the previous statement: while in 1970, 36.6% of the world population lived in cities and towns, in 1994 this figure was 44.8%. according to future forecasts, by 2025 the number of urban inhabitants will increase to 61.1%. (SzirMai v. 2005) Urban existence continues to raise new problems from social, economic and urban planning aspects. The question of urban rehabilitation has been a research area for historians, social scientists, geographers, sociologists and economists for a long time. The future lines of research have also been identified at the closure of a conference on the future of urban science (Forward Look in Urban Science, Final Conference 2005. Helsinki). According to this, the complex economic and social analysis of towns, the rehabilitation of physically decayed areas and the future developments in rehabilitation will be given particular emphasis. (SZIRMAI V. 2005) The research topic of this paper is the theoretical and practical analysis of urban rehabilitation from the aspect of competitiveness. The studied areas are sections of districts viii, iX and Xiii of the Hungarian capital, where rehabilitation has taken place or is still in progress. In this present study I wish to focus on the rehabilitated areas within the section of district iX (Ferencváros - Ferenc town) of budapest, the area referred to as Middle-Ferencváros. i have been