The South Transdanubian region, situated in the south and south-western part of Hungary, is made up of the counties Baranya, Somogy and Tolna. It covers an area of 14,169 km2 and has a population of approximately 1 million inhabitants. The region is rich in minerals as well as in thermal and health spas. The region’s strong rural character comes across through its lack of medium sized towns and the consequent fragmented settlement structure.

The regional economy is dominated by the agricultural sector and agro-food industries where meat and milk processing and the production of beer, wine and sugar play a key role. Although some large industrial companies are situated in the region, industry is still not as competitive as it is in the western or central regions of Hungary. Even so, the nuclear power station in the town of Paks accounts for more than one quarter of the total production of electricity in Hungary. In the tertiary sector, tourism is of vital importance to the region, in particular the area surrounding Lake Balaton. The availability of business support services has increased throughout the region. In 2000, the unemployment rate was 11.3%.

The South Transdanubian region hosts some of the most renowned Hungarian agricultural higher education institutions. For this reason, the region offers a large number of highly qualified human resources in this field. The regional volume of R&D activities in the agricultural sector is the highest in all of Hungary.

The region has established close international co-operation in the field of innovation with the Friuli-Venezia-Giulia region (Italy), as well as with Shannon (Ireland) and the Yorkshire & Humber (United Kingdom), working with the two latter regions under the framework of its regional innovation strategy.

Reminders of a rich historical past, varied landscapes and friendly people welcome visitors to Southern Transdanubia. This region embraces almost every type of Hungarian landscape. On the banks of the Danube, Dráva and the Mura, which flow on the eastern and southern frontier of the region, there are plains similar to the Great Hungarian Plain. Rolling hills are the most characteristic elements of the gentle Pannonian landscape. They create the typical Transdanubian panorama with their gentle slopes covered with forests and broken up with valleys. The two mountain "islands" of the region, the Mecsek and the mountain of Villány, are favourite tourist destinations as they preserve protected geological and botanical rarities.

Small villages hiding in the folds of hills cherish with special care their rich traditions. "Many places, Many customs" we could say, as every small area and every settlement has its own traditions. The popular architecture, dresses, customs and memories of the ancient peasant lifestyle reveal the pearls of the past to visitors who appreciate cultural values. Outstanding natural locations and towns abounding in monuments and artistic and cultural programmes welcome, with open, arms visitors looking for millennial memories or bustling everyday life. Historical monuments, museums, medieval castles and palaces secluded in natural parks make Hungary's stormy and rich history "tangible" and intelligible for everyone.