CZECH REPUBLIC
reaching maturity

Introduction - Financial sector - Privatization - Investment - Foreign trade - Energy - Telecoms - Tourism - IMF Summit


Tourism

Little Honzik-boy in the spring of Prague

The Czech Republic, always a crossroads of Europe, has many tourist attractions that make tourism an appealing business with 70-80 million of tourists visiting the Czech Republic every year. The main draw for the moment is Prague with its well preserved compact historic center that is full of gothic, renaissance and baroque buildings, palaces and churches, has a charming Jewish quarter and an imposing castle dominating its skyline. There are all kinds of tourists coming into Prague, from one-day pass-through backpackers to top-class visitors. International companies naturally focus on the top market segment and Prague has thus seen in recent years large growth of top class hotels. One of the leading players in the top segment is the five-star Renaissance Hotel, established more than seven years ago, and its younger sister, Marriott, opened across the street in May of last year. Several other projects are about to be completed, including Four Seasons and Kempinsky hotels. Will there be more players coming to Prague? Many experts believe so. "This city still has room for the upper market and the demand is growing strongly. This city used to be very highly touristic; full of bus tours, flight tours, all of them prearranged tours. However, now you see more and more individual business people, leisure travelers, and the trend is that the business travelers are becoming leisure travelers, too," says Rupprecht E. Queitsch, managing director of Renaissance and Marriott Executive Departments in Prague. "Anyway this city has so much to offer, especially on the upper market, that the boom will continue," he adds, proving his words by a simple fact - the well established Renaissance hotel has always enjoyed occupancy in the high seventies and the relatively new Marriott has finished just short of 70% occupancy in its first year of operation.


However, the Czech Republic is much more than Prague. There are many smaller historical towns and cities, several spa regions and mountains ideal for walks or biking. That most of tourist traffic still concentrates on Prague may be caused by the lack of promotion of other touristic areas. "I do not think the government has any strategy to promote the Czech Republic abroad, which is really unfortunate," says Jiri Simane, managing director of Unimex Group, majority owner of Cedok, the largest Czech travel agency. Therefore, Cedok has to rely on its own promotion, conducted by its offices abroad. Moreover, says Queitsch of Renaissance and Marriott Executive Departments, while the season is great, everybody in tourist business must worry about 5-6 months of the off season. "This is where organization is lacking," he adds.

As the Czech Republic becomes an ever-more visited travel destination and tourists learn to visit other places besides Prague, regional authorities, local businessmen and international investors will have to learn how to keep the visitors in their regions and offer them the best services possible. "For example in Pilsen, there are a lot of foreign companies but you cannot find a good hotel there, so this is a great opportunity for a multinational company," points out Simane, adding that there are dozens of opportunities in every region but investors do not know about them.

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© World INvestment NEws, 2000.
This is the electronic edition of the special country report on Czech Republic published in Forbes Global Magazine.

October 2nd 2000 Issue.

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