As the summer season approaches, Czech holidaymakers face a substantial increase in the cost of domestic vacations. While a weaker Czech koruna is making foreign trips more expensive, staying within the country’s borders isn’t proving to be a budget-friendly alternative either.
According to the Czech Statistical Office, hotel and guesthouse prices in July were nearly 9% higher than the previous year. Restaurant prices have also surged by over 7%. These increases have contributed to a slight rise in the country’s inflation rate, which climbed to 2.2% from June’s 2%.
The impact of these price hikes is being felt across various sectors of the tourism industry. Entrance fees to water parks and historical sites have also increased. Castle and chateau admission prices have risen by an average of 6%, with basic tickets costing tens of crowns more than last year. Popular destinations like Lednice, Český Krumlov, and Karlštejn now charge 300 crowns for their basic tour.
Hotel and restaurant operators attribute these increases to rising input costs and pressure to increase employee wages. The beginning of the year also saw an increase in some taxes, with VAT on these services rising from 10% to 12%.
Despite these challenges, the tourism industry is adapting. Some establishments are trying to offset costs by increasing prices by a maximum of 10%, but as Veronika Pekárková from the Mosaic House Design Hotel in Prague notes, “You can’t do this indefinitely because you’ll hit a price ceiling. The competition will be cheaper, and we’ll stop selling”.
As Czech holidaymakers grapple with these increased costs, they may need to adjust their vacation plans or budget more carefully for their summer getaways. The situation underscores the country’s broader economic challenges as it navigates post-pandemic recovery and inflationary pressures.