Czech tourism brings $4.55 billion annually into state budget

PRAGUE, Czech Republic - Revenues from tourism brought over Kc90bn ($4,55 billion US) annually to the state budget in the years 2010 and 2011 so there are signs of improvement for tourism, according to an analysis of consulting company KPMG.
From every one hundred crowns spent by tourists, Kc40 goes back to the state budget, according to the document. Tourism thus contributes to the development of the Czech economy in a significant way.
Tourism also helps regional development, in particular in regions which are not economically the strongest. Tax revenues from tourism contribute 6.5 percent to state budget revenues.
If all costs of support to tourism are compared with revenues from it for public budgets, it can be said that tourism pays off nearly 25 times, says the analysis.
Revenues from tourism to public budgets reached Kc90.5bn in 2010 and almost Kc94bn in 2011. Of this, over a half came from incoming tourism.
Total expenditures of the state and all regions and municipalities for direct support to tourism are worth only Kc1.4bn annually.
Several years ago, tourism in the Czech Republic registered a steep decline. While in 2007 foreign and domestic tourists spent almost Kc251bn in the Czech Republic, three years later it was only Kc214bn due to the economic crisis.
"The situation is beginning to improve and a pro-growth trend begins. According to preliminary calculations for 2011, Czechs and foreigners spent over Kc220bn during their holidays in our country. Expectations for the development in 2012 are similarly positive," said Ondrej Spacek of KPMG.
Tourism creates more than 330,000 jobs in the Czech Republic and contributes some 7 percent to its employment.

Source: ČTK