The Influence of Tourism on the Czech Economy

The Influence of Tourism on the Czech Economy

In 2010 approximately seven million tourists visited the Czech Republic, with the average tourist staying for four nights.

The KPMG Research

According to research recently conducted by the accounting firm KPMG, in 2008 the Czech economy was infused with approximately 293 billion Czech korunas (approximately USD 15.5 billion). Of this, about 97.5 billion korunas went to the state's purse, accounting for approximately 6.9% of state revenue. The majority of state revenue comes from value added taxes (VAT) and accounts for about 38% of state income. 2010 witnessed an increase of tourism of 4%, with yearly state income increasing as well.

The Czech tourism industry accounts for 372,586 full-time, year-round jobs, with additional part-time and seasonal work created during the summer months.

The Czech government understands the importance of tourism and its financial impact on the country, and new legislation supports investment in the tourism industry. Additionally, the European Union is allocating significant capital funds with the goal of supporting investments in tourism throughout the Czech Republic.

Although seasonal tourism can be influenced by factors such as climate, regime stability and economic downturns, the Czech Republic, and especially the city of Prague, continue to host many tourists throughout the entire year. The summer months, with the Czech Republic's wonderful weather, are very popular among tourists. 

The Czech Republic's location in central Europe also makes it an incredibly attractive destination with tourists. Prague, the Czech capital, is only a few hours from Berlin by train. Vienna, Budapest, Poland and other destinations are also close and easily accessible. Finally, freedom of travel in the European Union (no passports needed when traveling between nations due to the Schengen Agreement) means tourists enjoy inexpensive and easy movement between nations. 

The Jewish Museum in the Czech Republic is the most popular of all Czech museums and has more visitors than the Czech National Museum. Another site of note, the fifth most visited by tourists, is the Theresienstadt concentration camp, located less than an hour's drive from Prague and destination of over a half-million visitors every year. The Czech Republic offers relaxation as well as historical significance for those visitors who seek both a meaningful and relaxing visit.

The Situation Today

The Czech market offers an answer to expensive alternatives at a time when people are spending less. Attractive prices, a diverse spectrum of restaurants, a wonderful selection of quality beers, available on nearly every corner, and Prague's breath-taking views all offer visitors a fitting destination in leu other, more expensive nations.

Conbiz offers support and assistance in finding your optimal investment in the Czech Republic and provides complete and comprehensive services in a variety of areas including choosing your investment, financial investigations, investment yields, advising regarding finding Czech financial support, establishing a new company in the Czech Republic and other areas of development.

Conbiz's consultants are experts in their respective fields and have an intimate knowledge of local markets. This allows them the ability to open channels, for you, with relevant bodies and authorities - one of the most important aspects of development for any new business in the Czech Republic.

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