Prague 1 advocates for a balanced approach to tourism and fair cost sharing

The Prague 1 municipality is actively addressing the debate over the local stay tax, a topic that has sparked reactions from representatives of the hotel sector. The administration emphasizes that the responsibility for tourism development and funding lies primarily with the City of Prague, rather than individual districts.

In 2021, the capital city committed to the Memorandum of Cooperation on Tourism Promotion, ensuring that 50% of local tourist tax revenues would be reinvested into tourism development. Prague 1 expects the City Council to uphold this commitment, ensuring that these funds contribute to sustainable and high-quality tourism.

The increase in the stay tax is a response to the long-term impact of tourism on city infrastructure. Prague 1, as a central district, experiences a high tourist volume, leading to higher costs for maintaining public spaces, cleaning, and security. These expenses directly affect residents’ quality of life, making it fair for visitors to contribute more significantly to the upkeep of the city.

Local businesses, including hoteliers, restaurateurs, and tourism operators, benefit from well-maintained public spaces, safety measures, and efficient transport systems. A clean and organized environment is crucial for maintaining Prague’s appeal as a travel destination, as tourists are unlikely to visit a neglected or poorly maintained city.

According to Prague City Tourism, Prague remains one of the least expensive European capitals in terms of local tourist taxes. When compared to other major European cities, the Czech Republic’s tourist tax rate is below the EU average, despite Prague’s significantly higher tourism intensity. Given the strain that tourism places on infrastructure and services, the cost-sharing between visitors and locals should reflect this reality.

Prague 1 is not advocating for a uniform increase in the stay tax across all areas but instead supports a flexible approach that considers differences between districts. Areas with lower tourist traffic could maintain minimal or zero fees, while more visited areas could implement higher rates. The final decision on tax levels would remain with individual municipalities, allowing for adjustments based on local needs. Under current regulations, similar differentiation already exists for public space usage fees, such as charges for restaurant terraces.

Prague 1 has consistently supported sustainable tourism, ensuring that tourism contributes positively to the economy without negatively impacting residents’ quality of life. The proposed tax adjustment aligns with the City of Prague’s Inbound Tourism Strategy and the Respecting Prague 2024–2027 framework.

This measure is not an anti-tourism policy but rather a mechanism for fair tourism funding, considering both the economic benefits and the associated costs. Investments in cleanliness, safety, and urban appeal ultimately benefit both residents and the tourism sector, ensuring that Prague remains an attractive and sustainable destination.