As several popular EU countries have recently raised their tourist taxes to address issues like over-tourism and inflation, Prague is the latest to follow a similar decision, with Prague 1 district planning a hike.
Prague 1 district’s current tax of 50 CZK (around €2) per person per night is under negotiation for an increase as the local officials believe this amount is not enough, Schengen.News reports.
In addition, a report from the district’s Finance Committee also revealed that the average tourist tax in EU cities is around €7 per night—three times higher than Prague’s current rate. Regarding this comparison, representatives believe aligning with EU standards will boost revenue and simplify the collection process.
Prague 1 District Officials Seek Changes to Hotel Fee Allocation
Prague 1 district officials have expressed satisfaction with the current revenue distribution from accommodation fees. Right now, all hotel-related fees go to the city’s central budget, while Prague 1 district only collects fees from hostels and boarding houses, with 25 per cent required to be returned to the municipality.
District officials advocate keeping the total amount or having 25 per cent of hotel fees returned to support sustainable development.
The proposed increase is crucial, especially given the strain tourism places on the city center. Tourists should contribute fairly to the cost of public services. –Mayor Terezie Radoměřská
In 2023, Prague collected 801 million CZK in residence fees, an increase of 250 million CZK from the previous year. According to Deputy Mayor David Bodeček, Prague 1 generated 262 million CZK while collecting 22 million CZK from hostels, of which 25 per cent was returned to the central budget.
Prague Marked Record Revenue Boost From Increased Tourist Tax in 2023
Prague City Tourism (PCT) reported that an increase in tourists and the 2022 decision to raise the tourist tax contributed to generating millions more for the city, which can be invested in cultural and historical projects.
PCT further revealed a record-breaking collection of €33 million (801 million CZK) in 2023, thanks to the increase in the overnight tax from €0.87 (21 CZK) to €2 (50 CZK). Tourist spending has increased by 40 per cent since 2019, with demand for luxury hotels rising by a third compared to last year.
Schengen.News previously reported that popular destinations across the EU are implementing entry fees for 2024. New tourist taxes have been announced for places like Santiago de Compostela and Figueira da Foz, while cities like Paris and Amsterdam are raising their tourist taxes. The UK will also introduce a new system requiring visitors to pay a €7 fee to apply.
Source: https://schengen.news/prague-joins-other-eu-cities-in-plans-to-raise-tourist-tax/
