Prague City Tourism: Councilors approved share capital increase
PCT was established in 2018, when councilors stated that the company will be financially self-sufficient and will earn money from its operations. Unfortunately, the coronavirus pandemic changed everything and the company paid a hard price for both the massive outflow of tourists and the lockdowns, due to which all the monuments were closed.
The city company thus lost millions in admission. In order to maintain the operation of the entrusted monuments in the standard mode, Prague councilors recommended that they increase the company’s share capital in order to keep up with cash flow problems.
45 million injections
“PCT is currently still only at 20% of the profit compared to 2019. If we want to keep the organization running, which generates considerable funds from the operation of tourist facilities, we must now increase its capital. We approved an increase of 45 million crowns, now PCT will have a total capital of 111 million crowns, “said Culture Councilor Hana Třeštíková (Prague to Herself).
“These funds are not necessary to cover operating losses, but they will only serve as a means to solve the cash flow problem“Councilors guaranteed.” The share capital will be increased by the subscription of 45,000 paper shares and will be subscribed for without a public offering in cash. The sole shareholder of the company is the capital.
Does Prague attract more affluent tourists?
PCT not only manages some of Prague’s monuments, it also runs a campaign to support tourism and tries to adjust the face of Prague so that it is not perceived only as a city suitable for alkotourism. The campaign, which is to attract more affluent tourists to Prague, will be launched by PCT at the beginning of October.
“We want to get rid of the label of cheap alkotourism in the capital. Together with PCT, we are building a new brand from Prague, which will appeal especially to a cultured clientele with an interest in culture, monuments or quality gastronomy. So that we have a tourist for the city who will have a personal relationship with our metropolis and will be happy to return here, “says Třeštíková.
The campaign, which will cost about 40 million crowns, will take place exclusively in the online space. The necessary data, such as the age group of tourists and their shopping habits, is provided by Mastercard. “This will allow us to target the campaign as effectively as possible,” says František Cipro, Chairman of the Board of Directors of Prague City Tourism.
In the campaign, PCT wants to present Prague as an authentic place. She therefore invited a number of artists to help such as the Tata Bojs group, the Unique Quartet, the Grammy Award winner Ondřej Pivec or the progressive dance group Dekkadancers. Video spots were created with them, which will support the new image.
A new StayinPrague.eu website has also been set up in English and German, where foreigners can find out about accommodation options, current anti-epidemic measures or just watch some of the recorded spots.
Crowds of tourists on the Old Town Square (October 7, 2021)
Author: CNC / Jan Zázvorka