Prague councilors approved the change in the tourist tax
In Prague, an amended decree on the local accommodation tax has been in force since the beginning of 2022.
By increasing the local tourist tax from CZK 21 to CZK 50, Prague will receive the necessary funds to achieve its long-term vision of cultured and sustainable tourism, the development of the city as an attractive destination for meetings, conferences or exhibitions, and the promotion of the city abroad.
“This fee is the only tool with which Czech municipalities can directly offset the costs associated with tourism and through which they can participate in its economic benefits. Prague, with accommodation costs of CZK 21 per night, has lagged behind Europe and even behind a number of Czech cities. The increased fee will help the city and the people of Prague, and I am glad that we have agreed this necessary step with the hoteliers themselves. says Pavel Vyhnánek, Deputy Mayor and Councilor for Finance and Budget.
Based on the agreement in the memorandum, half of the collected funds will be used, for example, for regular targeted campaigns promoting sustainable inbound tourism.
Prague’s image as an ideal destination for meetings and conferences will also be significantly boosted. The city will also support exhibitions, fairs or other major events, whether cultural or business, which will attract educated visitors.
“Prague is a city of culture, history, monuments or quality gastronomy. We want to accentuate this note during its promotion abroad. Until now, spending related to tourism and used to promote the capital has been financed out of the pockets of the people of Prague. From next year, tourism will increasingly gain its own resources. Half of the funds that will be raised through increased local fees will go back to tourism and help us achieve our vision of cultured tourism,” says Hana Třeštíková, adviser for culture and tourism.
Tourism in the Czech capital employs more than 100,000 inhabitants. However, the taxes collected and their subsequent redistribution within the framework of the so-called tax budget allocation are not linked to the regions and their economic activity.
Although tourism is an important sector of Prague’s economy, the city itself receives only a fraction of the tax revenue that public budgets receive from tourism.
In other European cities comparable to Prague, the fee varies from two euros, and the cities use this revenue, for example, to develop infrastructure or promote tourism.
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