Czech Republic

Czech Republic

Tourism in the economy The share of tourism in the Czech Republic’s GDP, calculated by the Tourism Satellite

Account (TSA) method, was 2.9% in 2007. The number of international arrivals reached

6.6 million in 2008. Domestic tourism consumption amounted to EUR 3 804 million in 2007. In the same year, foreign currency revenues from tourism reached EUR 4 830 million

with their share in exports amounting to 5.2%. Tourism-related expenses in foreign currencies amounted to EUR 2 650 million and the balance on the tourism account was EUR 1 999 million. Given the rapid development of the Czech economy in 2007 and a slight stagnation of tourism, the share of tourism in GDP has tended to decline.

The numbers employed in tourism in the Czech Republic amounted in 2006 to 239 500 and this sector’s share in total employment reached 4.71%.

Tourism organisation On the central level, the tourism industry comes within the province of the Tourism

Department of the Ministry for Regional Development (Figure 4.6). Within its legislative powers, the Ministry proposes and implements measures aimed at strengthening international co-operation in the field of tourism and participates in preparing relevant legislation, in procuring and analysing statistical information, in developing tourism in the regions and in activities targeted at the quality and structure of services rendered.

The Czech National Tourism Board – CzechTourism – is a grant-aided department of the Ministry for Regional Development. Its principal mission is to create, in a continuous and systematic manner, awareness of the Czech Republic as a country with wide tourism potential. To this end, CzechTourism takes part in tourism actions and exhibitions abroad, has overseas offices in 26 countries, and takes care of extensive editorial activities relating to advertising materials.

The Czech Republic’s administrative system of 14 self-governed regions (NUTS 3) came into effect in 2000. This long-awaited regional set-up has greatly enhanced the organisation of tourism in the Czech Republic. Regions and individual communities and municipalities are represented by public institutions.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Figure 4.6. Czech Republic: Organisational chart of tourism bodies

National level

Regional level

Ministry for Regional Development

Regions (14 independent regions)

Tourism Commission

Tourism Department

of Association of

Departments of

Regions of the

Tourism in Regions

Czech Republic

Tourism Integration and Competitiveness

Tourism Associations

Tourism Communication

(private sector)

and International Co-operation

Czech

Regional Bodies

National Tourism Board

Destination

Managements Tourism Intervention

National

Collegium of Tourism

Source: OECD, adapted from Ministry for Regional Development, 2009.

Tourism budget Tourism in the Czech Republic is funded from a number of sources (the Ministry for

Regional Development and other ministries, regions, cities and municipalities). The main current source (for the period 2007-13) is from EU Structural Funds.

The budget of the Ministry for Regional Development and thus the budget of the Czech National Tourism Board, as well as budgets of the regions and co-financed European Structural Funds come from the national budget. The national tourism administration had a total budget in 2008 of EUR 53.5 million – a small increase on the 2007 figure of EUR 52 million.

The Czech National Tourist Board received EUR 13.4 million in 2009, compared with EUR 13.0 million in 2008 and EUR 12.4 million in the previous year. The 2007 figure represented a step increase from the budget for the two previous years which was of the order of EUR 8 million for both years.

Financial assistance provided to tourism is allocated via several operational programmes (see Box 4.7): ● The Integrated Operational Programme (IOP) – assistance provided through this

programme is used in national and system interventions in tourism, focused generally on service quality, the improvement of statistical information, and national marketing. The total tourism allocation amounts to EUR 77.5 million, 15% of which is funded from national sources.

● Regional Operational Programmes (ROP) – the Czech Republic has a total of 7 regional operational programmes at the regional level (NUTS 2). Activities funded within these

programmes are focused on the construction or renovation of basic and ancillary tourism infrastructure and on the promotion of tourism marketing at the regional level. The total tourism allocation amounts to EUR 981.9 million, 15% of which is funded from national sources.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

● Rural Development Programme – this programme promotes activities related particularly to rural tourism and the support of agro-tourism. The total tourism allocation amounts to

EUR 144.8 million, 15% of which is funded from national sources.

Box 4.7. Quality in tourism The Ministry for Regional Development is currently preparing several systemic projects

financed from EU Structural Funds. The purpose of these projects is to set national quality standards for the following tourism segments: accommodation, gastronomy, catering services, wellness establishments, services of tourism bureaux and guides, camps and cabin settlements, marked tourist paths, private accommodation, equestrian tourism stations and paths and the introduction of national standards for sustainable tourism development.

All standards will always be set so as to allow their full future incorporation into the National Tourism Service Quality System, which is to be implemented in future in the Czech Republic and which should serve as an umbrella to cover tourism quality in the whole Czech Republic under a single brand.

Tourism-related policies and programmes Tourism policy in the Czech Republic

The State Tourism Policy Concept in the Czech Republic for 2007-13 (the Concept), which is the fundamental medium-term tourism-related strategic document in the Czech Republic, was approved by the Czech Republic government in November 2007. The strategic part of the Concept is represented by the vision Destination Czech Republic – Number one in the Heart of Europe.

The priorities of the Concept are: ● the competitiveness of national and regional tourism products;

● increasing and expanding the quality of tourism infrastructure and services; ● tourism marketing and human resources development; and ● the creation of an appropriate organisational structure for tourism.

The success performance of the Concept depends on a proper and precise implementation of defined strategic projects. This necessitated the elaboration of an Implementing Document to the Concept, which further specified individual projects included in the Concept. This document, which was submitted to and approved by the Czech government in July 2008, represents an action plan which contains a detailed description of how to perform individual activities stipulated in the Concept.

Legislative and regulatory environment The sale of package-travel products is regulated in the Czech Republic by an Act

covering Certain Conditions of Business Activities in the Field of Tourism and various amendments.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Human resources The Ministry for Regional Development carries out a whole range of educational

activities in the field of tourism. Within the past programming period of 2004-06, a total of seven large systemic projects was implemented under the Operational Programme for Human Resources Development for the education of people employed in tourism and the public sphere, with a focus on information technology, destination management and event marketing. This had a budget of EUR 8.5 million. A total of 8 907 people were trained and

79 special publications, prepared for the purposes of these projects, are used further for other tourism purposes.

Co-operation with the tourism industry, consumers and other stakeholders The Ministry for Regional Development periodically initiates round tables with

representatives of professional bodies and the general public (Hotels and Restaurants Association of the Czech Republic, Association of Travel Bureaux, Association of Tourism Regions, Association of Tourism Information Centres, and Tourist Guides Association). These meetings seek to address and resolve the current problems of the tourism sector.

Statistics and economic evaluation of tourism In November 2006 the Czech Statistical Office published the first results of the Tourism

Satellite Account (Box 4.8), and has currently processed Tourism Satellite Account tables for the years 2003-07.

At the same time, the Ministry for Regional Development is currently preparing several systemic projects, to be financed from EU Structural Funds, which are aimed at improving and expanding statistical information on tourism. These projects include, among other things, a survey of accommodation establishments and tourism bureaux and will significantly improve tourism statistics on the conference and incentives sectors. A project aimed at improving the quality of statistical data for TSA regionalisation purposes is to be implemented in future.

Box 4.8. Improving data quality for the Tourism Satellite Account This project will be implemented by the Ministry for Regional Development in 2009-15 as

a part of the Integrated Operational Programme. Its total funding of EUR 4.15 million will

be covered by EU Structural Funds. The objective of this project is to obtain information about the number and structure of foreign visitors and their expenditure, which will be used in the compilation and further specification of the Tourism Satellite Account tables. Another aim of this project is to provide a sufficient quantity of relevant statistical data and information concerning the offer and use of tourism services, in order to assist decision making in tourism planning.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Statistical profile Table 4.25. Czech Republic: Domestic overnight tourism

2007 2008 Number of overnight stays (non-residents)

20 610 19 987 Number of overnight stays (residents)

3.34 3.26 3.26 3.15 3.06 1. Both non-residents and residents.

Average length of stay in collective accommodations 1 Nights

Source: Czech Statistical Office, 2009. 12 http://dx.doi.org/10.1787/765777878173

Table 4.26. Czech Republic: Inbound tourism – International arrivals and receipts

2007 2008 Total international arrivals

6 680 6 649 Average length of stay in collective accommodations

3.13 3.09 3.12 3.09 3.01 Top 5 markets Germany

Nights

1 549 1 476 United Kingdom

413 375 United States

248 236 Same-day visitors

128 639 .. International passenger transport receipts

International travel receipts 1 Million CZK

16 321 .. 1. Inbound tourism consumption.

Million CZK

Sources: Czech Statistical Office, 2009, Tourism Satellite Account. 12 http://dx.doi.org/10.1787/765810057473

Table 4.27. Czech Republic: Outbound tourism – International departures and

Number of tourism trips 1 Thousands

80 597 .. International passenger transport expenditure

International travel expenditure 2 Million CZK

15 972 .. 1. Only outbound trips (four and more overnight stays) of residents aged 15 or more years, domestic trips not included.

Million CZK

2. Outbound tourism consumption. 3. Including costs on fuel.

Sources: Czech Statistical Office, 2009, Tourism Satellite Account. 12 http://dx.doi.org/10.1787/765832715723

Table 4.28. Czech Republic: Enterprises in tourism

2006 Hotels and restaurants

49 705 Source: Czech Statistical Office, 2009, Business Register.

12 http://dx.doi.org/10.1787/766045842077

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Table 4.29. Czech Republic: Employment in tourism

Female Total Hotels and similar establishments

14.3 19.2 33.4 16.3 22.4 38.7 16.8 22.6 39.3 Restaurants and similar establishments Thousands

Thousands

37.8 34.7 72.5 38.9 34.6 73.5 37.9 34.5 72.3 Railway passenger transport

6.0 2.8 8.7 5.6 2.2 7.8 5.2 2.2 7.4 Road passenger transport

Thousands

13.5 1.8 15.3 13.3 1.8 15.1 14.0 1.6 15.7 Water passenger transport

Thousands

0.1 0.0 0.1 0.1 0.0 0.1 0.1 0.0 0.1 Air passenger transport

Thousands