How to Attract Visitors during the “Slow Growth” of Prague City Tourism

In most respects 2016 was a good year for tourism not least in the Czech capital, which saw yet another increase in the number of visitors.

But there were complications as well, among them heightened security introduced at Prague Castle mid-season which led to unexpected and unprecedented lines, at least for a time. Still, on the whole, Prague offers more and better possibilities than ever, something Radio Prague discussed with the head of Prague City Tourism, Nora Dolanská. We began by asking her first how she rated 2016 overall.

Nora Dolanská said: “I must say this year has been very successful. Last year, we had six and a half million tourists in Prague and we expect that this year we should have about 5% more. This is a very very good number and we are very satisfied with it.”

Usually, ranking in numbers, top were German tourists. Around 60 or 70 % of all the tourists are Europeans. The second and third place are the tourists from the USA and from the United Kingdom.

This is very good for us because this is good quality and we are satisfied with the quality of the tourists.

Of course this all is a matter of change. We most some Russian tourists last year, but in the second half of this year we expect growth again in Russian visitors and in visitors from Eastern Europe.

Other tourists are from China, from South Korea, because now we have cooperation with the Asian countries.

This is very good, especially with the direct flights to Prague, which are very important for tourism generally.

Q: Of course and just to follow up, when you talk about German tourists, obviously, a neighbouring country, no surprise there. In terms of the nature of visits these days, do these seem to be short-term, overnight stays or a couple of days, when talking specifically about German visitors?

A: We have a lot of tourists, who come to Prague. They do not stay for so long, two or three days maximum. But together with them, we have a lot of tourists who are coming only as visitors. They come in the morning and in the afternoon the same day, they will go home.

And this is very problematic for a small city like Prague, because we have a small historic centre, the streets are all very close, or tight, not like in bigger cities such as Vienna or Paris or London.

And for us this is it is very complicated in some times of the year with how full is the city.

Q: So it is congested you are saying, a lot of the time there are many people here at the same time.

A: Yes it is, and of course, most of them are coming in the high season, from April to October. Our target is to have a longer season.

We shall prepare some exhibitions and performances in the low season, from November until February.

We would also like to show other parts of the city to tourists, who remain mostly in the centre. This is a new progress, we must prepare new routes and new trips to other parts of the city.

We have a lot of interesting buildings there but it is the matter of showing them, so the tourists stay in the city and have a lovely time in the other parts, not only in the centre.

Q: You may say that they are missing out if they only see the main sights, there are hidden secrets here.

A: Yes, yes.

Q: Which leads into my next question because obviously, the main sights are not going to change anytime soon, Charles Bridge, Prague Castle, Malá Strana. Those are the initial draws. Is it fair to say that the kind of quintessential Prague experience that some of us had 15 or 20 years ago that that has changed? It is not just the historic sights now, it is not just the lunch and dinner with the pork and dumplings and beer. Is that changed?

A: Yes it is, now we have a lot of other possibilities in gastronomy. We have a lot of restaurants, special bars, night clubs. Also places in other parts of the city, for example Prague 7 or Prague 8. It is a new area for tourists, they have not seen it until now and it is some very good experience there.

Q: Prague 7 is for example now in the process of reinventing itself as more of a cultural hub.

A: Yes, exactly, this is it. And together with them, we have some new wine areas, also a Prague wine tour. It is very new but very interesting for some of them.

Q: You mentioned the high congestion during the high season which I suppose can detract to a degree from the experience, it can be difficult if tourists have to wait lines. So my next question is, were there any negatives that we saw this year? For example Prague Castle heightened security, which created long lines. Also from the perspective of tourists, how did you view the Segway ban which is now in place?

A: For the Prague Castle, I think it is not that different from the rest of Europe, when you are going to expositions. In London in Paris – you have this thing too.

With the Castle, it was a special situation, because I must say, it was not well prepared.

It was put in place too quickly and in the middle of the season, it was not there for the whole season, information were not issued to the travel agencies before it was installed.

I think for the tourists in general it is now not such a big problem.

The problem with Segways, it is a general problem with Prague, because it is a very tightly-packed city. I think the ban is right, it is very good.

Q: You used to see these see long lines of ten, twenty Segways heading up to Prague Castle...

A: Yes and it was dangerous! I have seen one of them going on the street with cars, it really was a very dangerous situation and with so many people together in the city, it is impossible.

Q: So in short, visitors coming to Prague can look for other experiences than Segway rides.

A: Yes, Prague is for walking, it is the best experience is in the walking distance. And this is what we are trying to show and prepare for people to experience in our city.

Q: Previously, the city has done very well when it came to for example Trip Advisor. How is it ranked at the moment?

A: We have now the best Christmas market in the centre of Europe. The Christmas market is very romantic, and generally we can say, that our experience of our tourists is that Prague is altogether very romantic. It is the main slogan for all that we do.”

Q: We just saw the tragedy in Germany, a terrorist attack which claimed 12 lives, including that of a Czech woman: they have heightened security at these key sights that we are talking about. Is that the reality that we have to live with now?

A: The reality, in all of Europe I think, is that we must be very flexible, you cannot do anything with this situation. For Berlin, it is a pity I must say. In Prague we have the city police and they must help us take the people who come to Prague and make them safe.

Q: We are still in the Christmas period, it is obviously not a bad time to visit Prague as you said, Prague is one of the most romantic cities in Europe. What is your advice for anyone heading to Prague in the winter months?

A: You should try and get a deeper sense of the city. For next year we want to promte a new term, what we are calling 'slow tourism'. People should not be in a hurry. It is not possible to sit on the bank of the river in winter of course but if you see there is a small cafe somewhere and you can sit there and see and feel the atmosphere of the city. That is the best which you can do in Prague.

Q: So in some ways, it is the return to the basics, of what tourism really should be.

A: Yes, it is important and I think in spring, tourists will come to Prague and enjoy the wonderful atmosphere.

Q: Some 1,380,000 people visited Prague in the first quarter of 2017, spending over three million nights in the city, according to data released by Prague City Tourism. After years of downfall in the number of Russian tourists, the office has recorded a significant surge in the number of Russian tourists. Do Russian tourists tend to spend more days in the city when they come to Prague?

A: Yes, around 60 percent of incoming Russians spend their time in Prague only. But the amount of days spent here is what makes them so specific.

The average number of bed-nights is 2.5 but for Russians it is almost four, so they do tend to spend the longest time in Prague among all nationalities.

Q: In recent years, we have also seen an increase in the number of tourists coming from Asia. Is that still the case?

A: Definitely. For example in the first quarter of 2017, we recorded a 24.8 percent increase. Tourists from Asia used to come to Prague only during the summer but now we see that the trend is changing and they are coming throughout the whole year. So their numbers are constantly rising, mainly tourists from South Korea and China.

Q: You have also recorded an increase in the number of local tourists coming to Prague. What are the reasons behind this trend?

A: If you look at the numbers you can see a certain correlation with the depreciation of the Czech crown, when holidays abroad became significantly more expensive for people here.

But we also try to target local tourists. We highlight festivals and cultural events, trying to improve Prague’s reputation, showing them that there is a lot to do and to see, that it is not just an expensive destination for foreigners.

For May and June we have an outdoor campaign on our main roads and highways all around the country trying to show local tourists that Prague can be theirs as well, that this is an attractive destination where they can spend their time.

Q: Czech department store takes Chinese name to tempt high spending tourists?

A: One of the Czech Republic’s oldest department stores, Kotva, which is located in downtown Prague, wants to focus more on Chinese clients, its management announced in a press release on Wednesday.

The store has even acquired an official Chinese name: gao-te-wa.

The three Chinese characters in the title are reminiscent of the Czech name Kotva, which means anchor in English. The title was chosen with the help of the Confucius Institute of Palacký University in Olomouc and refers to “exceptionality and high quality”. The department store, owned by the Irish company Markland, will use it in their campaign targeting Chinese customers.

We chose the same direction as they did for example in London, where important buildings and heritage sites have their official Chinese names.

We hope that this step with also help us in highlighting Kotva as an interesting architectural site and as a traditional Czech department store for Chinese tourists.

The importance of Chinese customers for Czech retail has been increasing in recent years. In the third quarter of 2015, Chinese tourists spent more than the Russians, who until then had led the ratings.

In the period between July and September, Chinese visitors accounted for 33 percent of the total spent by non-EU tourists in the Czech Republic. Meanwhile, the share of Russian tourists last year almost halved to 16 percent from the previous years’ 31 percent.

In 2014, some 211,000 Chinese tourists arrived in the Czech Republic and according to the estimates of the Czech Association for Tour Operators and Travel Agents, their numbers soared to around 270,000 last year.

The average amount the Chinese visitors spend on their shopping during their stay has increased to 19,400 crowns in 2015, compared to 15,900 in the previous year.

Kotva managed to remain in business despite a huge modern shopping centre, Palladium, opening directly across the street in 2007. In 2014, Kotva’s sales increased by 50 million crowns compared to the previous year to total roughly 800 million.

The Brutalist architectural style department store was opened in 1975 and it was one of the first outlets of its kind in Prague. The building, whose ground plan consists of several interconnected hexagons, was designed by the husband and wife team of architects Vladimir and Věra Machonin, who also designed the Hotel Thermal in Karlovy Vary.

Prague City Hall has recently applied to include the department store in the list of national cultural heritage sites.

Q: Higher vat returns for visitors would boost spending?

A: The number of Chinese visitors to the Czech Republic has been rising fast in recent years.

Now Czech tourist industry groups want to encourage them and other non-EU tourists to spend more when they are here – by offering them greater VAT returns on goods bought during their stay.

At present visitors from China, Russia and other non-EU states can apply to get the VAT back on all purchases made in the Czech Republic at a value of CZK 2,000 crowns or more.

Now associations involved in incoming tourism are lobbying for that amount to be cut to CZK 1,500, iDnes.

If the change were made, tourism bodies believe it would lead to a marked uptick in how much such visitors leave in the country, the news website said.

A study produced by the Czech Chamber of Commerce suggests that the move would leave a hole of CZK 30 million a year in the state coffers.But that is a small amount when set beside the CZK 1 billion that tourists now get back in VAT annually, according to the study.

The study’s authors believe the idea would above all have a psychological effect. Thanks to the overall sense that good deals are to be had in Czech shops, non-EU visitors would spend an extra CZK 150 million a year, they say.What’s more, the number of jobs in tourism would grow because of the impact on the grey economy, which would suffer as documentation would obviously be necessary to get the VAT back, the report contends.

It also claims that reducing the limit would serve as a buffer when the Czech National Bank ceases its weak crown policy, probably next year. However, the tourist associations’ idea has a major opponent: The Ministry of Finance.

Spokesman Jakub Vintrlík told iDnes.cz that the ministry is against reducing the limit as it sees no benefit to it.

According to the Ministry’s calculations, the move would cost the state at least CZK 250 million. In addition, such tourists tend to buy luxury items which go for considerably more than CZK 1,500, so it would be of little benefit to retailers in any case, they say.

However, a representative of crystal producer Moser said visitors spent an average of CZK 1,730 on small gift items at its stores in Prague and Karlovy Vary.

Retailers also argue that they need to compete more with outlets in other states. Germany returns VAT on all purchases made by non-EU tourists, while states such as Poland have lower limits than in the Czech Republic.