The Prague City Hall is increasing the increase in the tourist tax from the current 21 to 50 crowns per person per night, and also plans to invest half of the selected amount in a new budget fund designed to support tourism in the metropolis. Representatives of the municipality signed a memorandum with their company Prague City Tourism (PCT) and the Association of Hotels and Restaurants of the Czech Republic on Wednesday. The money is to go to support congress tourism, big events and marketing campaigns. The city is currently preparing an amendment to the decree, which will be charged. It has not yet announced when it will be.

According to Deputy Mayor for Finance Pavel Vyhnánek (Prague Sobě), the city collected a fee approaching 300 million crowns before the coronavirus pandemic, and the city districts also receive part of the money. At the time of the pandemic is chosen due to the decline in tourism to radically reduce, the city additionally charges last year. “I can assume that with the return of tourism, it will be 500 or more crowns,” he said.

“I am glad that for this amount, or a substantial part of it, we have a specific use, that it will not dissolve in the huge Prague budget, but that it will return to tourism and its development,” Vyhnánek said. According to the signed memorandum, Prague wants to focus on supporting these types of tourism, which do not have a negative impact on the local population. According to PCT director František Cyprus, the congress tourism and big event will attract foreign visitors.

The money from the fees is also to go to a campaign promoting Prague as a tourist destination, such as the current one focused on the autumn and Advent seasons. “We are very satisfied with its course, so I am looking forward to the fact that, thanks to Wednesday’s signature, we have the opportunity for further campaigns in the coming years,” said Councilor for Culture and Tourism Hana Třeštíková (Prague Sobě). The President of the Association of Hotels and Restaurants of the Czech Republic, Václav Stárek, added that the past campaigns worked, so even the current one will be very successful, according to previous figures.

According to Vyhnánek, the PCT has until March next year to prepare the rules for distributing money. “Technically, it will work by setting aside a special budget fund in which the funds will be stored and then used,” he explained. The city council will decide on specific projects financed from the fund.

The deputy is not afraid that the increase in the fee may have discouraged tourists from visiting. “The fee is really symbolic at the moment, it is the lowest in comparison with comparable cities not only in Europe. There are even a number of Czech cities that have significantly higher ones,” he said.

Increase the accommodation fee to 50 crowns from the available amendment to the 2019 law from this year. According to a document approved by the Prague councilor in October, the current Prague rate of 21 crowns (approximately 0.8 euros) is set low. For example, in Barcelona it is 1.1 euros, in Vienna 2.1 euros, in Budapest 3.2 euros. Tourist in Rome pays more than six euros, and even 19 euros in Copenhagen. Some Czech cities such as Karlovy Vary, Český Krumlov, Františkovy Lázně or Lipno nad Vltavou have already decided to increase the fee to a maximum of CZK 50.