Half of the revenue from the overnighting fee will be reinvested into developing sustainable tourism. This was approved today by Prague City Council
Prague, 29 August 2022 – The City of Prague is the first urban authority in the country to reinvest 50% of all revenues from the overnighting fee into developing tourism. The proceeds will be used primarily for upmarket focus, marketing campaigns implemented by Prague City Tourism or MICE activities such as congresses or international conferences. This is what Prague City Council approved today. The redistribution system will come into effect from 2024 and will follow up on the previously signed memorandum between the City of Prague, the Czech Association of Hotels and Restaurants, and Prague City Tourism, raising the overnighting fee to CZK 50.
The overnighting fee, which is the only one in the field of tourism to receive direct funding for municipalities, will provide prospective support for the development of upmarket and sustainable tourism. Half of the collected funds will be reinvested by the city for developing tourism, i.e. funded by tourists themselves.
“I am really glad that today at the Prague City Council we had confirmation of our commitment to invest half of the revenues from the overnighting fee into sustainable tourism and the cultivation of public spaces. Thanks to this, Prague can invest much greater resources for the development of the city,” says Hana Třeštíková, Councillor for Culture and Tourism.
This system of support for sustainable tourism will come into full effect from January 2024 and in more limited mode from January 2023, with just under CZK 31 million expected. For the following year, the sum collected per night will be many times higher, based on the updated CZK 50 overnight stay levy.
“We greatly appreciate such cooperation with the city’s administration, which has already brought very good results and high-quality marketing campaigns in recent years. Prague has long been exemplary of a modern approach to supporting tourism, although financial resources are limited. We welcome the systemic distribution of fees and we are ready to continue to cooperate on the effective collection of the fees, which are partially put back into supporting tourism,” says Václav Stárek, President of the Czech Association of Hotels and Restaurants.
Experts agree this systemic planning will ensure the implementation of regular targeted campaigns to promote sustainable tourism and its cultivation in the metropolis. It will also strengthen the image of the metropolis as a MICE destination suitable for congresses and conferences.
“Thanks to this particular measure, tourism expenditure will no longer exceed its revenues. In addition, it will allow our company to plan marketing campaigns to support inbound and domestic tourism, through which we are building a new image of Prague as a cultural city offering quality services and fine dining,” says František Cipro, Chairman of the Board of Directors of Prague City Tourism, speaking about the specific use of these funds.