Prague City Tourism (PCT) has reported a significant boost in revenue in 2023, largely driven by an influx of tourists and the decision to raise the city’s tourist tax. The increased income is expected to provide millions of euros that will be reinvested into cultural and historical preservation projects across the Czech capital.
In 2023, PCT collected a record €33 million (801 million CZK), thanks to a change in the overnight tax rate, which rose from €0.87 (21 CZK) to €2 (50 CZK) per night. This change, along with a post-pandemic surge in tourism, played a key role in boosting the city’s coffers. Tourist spending has jumped by 40% since 2019, with a notable 30% increase in demand for luxury hotels over the past year.
The rise in tourist taxes in Prague is part of a broader trend across Europe. According to Schengen.News, numerous popular destinations in the EU are either implementing new entry fees or raising existing tourist taxes for 2024. Cities such as Santiago de Compostela and Figueira da Foz have announced new charges, while major tourist hubs like Paris and Amsterdam are following Prague’s lead by increasing their levies. The UK will also introduce a new €7 application fee for visitors as part of its updated entry system.
These efforts, aimed at managing the influx of tourists and funding local projects, reflect a wider shift towards sustainable tourism practices across Europe.