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PRAGUE

Prague wants to increase the tourist tax on accommodation from 21 to 50 crowns per day

Sugar Mizzy October 20, 2021

The city therefore approved a memorandum with its company Prague City Tourims (PCT) and the Association of Hotels and Restaurants of the Czech Republic, according to which a proposal to introduce a new price will be created by March 2022. This follows from the material approved today by the Prague councilor. The current amount of the fee applies from 1 January 2020. Due to the covid-19 pandemic, the municipality forgave the fee last year. Tourism is one of the most affected sectors. The director of the Orea Hotels & Resorts hotel network, Gorjan Lazarov, does not consider this step to be happy in the current crisis. “It will be another burden for the industry,” he said.

“Expenditures of the capital city of Prague in the field of tourism have long significantly exceeded revenues in this area. The PCT, in cooperation with the capital, is trying to find ways to alleviate this existing imbalance, “the document said. For example, the city subsidizes public transport for tourists, because according to it, tickets do not cover costs, waste collection, public lighting, emergency services or security.

“We find it appropriate and fair for the costs associated with tourism to come from tourists, not from the pockets of Praguers. We are convinced that this step will not endanger tourism in Prague, but on the contrary will help it, “said Deputy Mayor Pavel Vyhnánek (Prague Sobě). According to him, it is not possible to say exactly what the difference is between income and expenditure. According to the square, however, it is more than a hundred million crowns.

An increase in the rate would bring additional income from tourism to the city coffers, which, according to the document, could be used to support and cultivate tourism. The law allows Prague to increase the fee to 50 crowns.

The chairman of the Association of Hotels and Restaurants of the Czech Republic, Václav Stárek, said that increasing the fee was the right step and that the money needed to be reinvested in tourism. There is no fear of a possible outflow of tourists. “They could not travel to other cities according to the same pattern. “Everyone who travels the world knows that charging is a common practice,” he said. According to him, tourism could reach – at the turn of 2023 and 2024 – if there are no problems.

According to Lazarov, the hotel industry is facing the biggest crisis in recent years and there is great uncertainty in the industry. “It would be much better if the relevant people in general thought more about how to help the hotel industry than to burden the industry with an increase in fees. In addition, increasing the contribution will increase the total accommodation costs for the end customer, “he said.

Compared to other European cities, the fee in Prague is at a significantly lower level. The mentioned 21 crowns represents about 0.81 euros. According to the document, for example, in Barcelona it is 1.1 euros, in Vienna 2.11 euros, in Budapest 3.2 euros. More than six euros will be paid by tourists in Rome and Copenhagen, even 19.04 euros.

Some Czech cities such as Karlovy Vary, Český Krumlov, Františkovy Lázně or Lipno nad Vltavou have already decided to increase the fee to CZK 50. Above the level of CZK 21, there are also fees for Ústí nad Labem, Lednice, Špindlerův Mlýn and Luhačovice.

In 2019, approximately 344 million crowns went to the city treasury on accommodation fees. Last year, her city forgave her for a coronavirus pandemic. In addition, there was a significant decrease in millions of tourists and the city collected only 67 CZK, moreover, at the end of this year it was 34 crowns from January to September.

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