Prague Joins Other EU Cities in Planning to Increase Tourist Tax

Prague Joins Other EU Cities in Planning to Increase Tourist Tax

Key Takeaways

1. Prague's District 1 aims to raise its current tourist tax of 50 CZK (€2) per person, per night.
2. Local officials argue the tax is low compared to the EU average of €7.
3. Hotel fees currently go to the central budget, while District 1 only collects from hostels and boarding houses, returning 25% to the municipality.

Prague is planning to follow in the footsteps of other EU cities by increasing its tourist tax, with District 1 preparing for a potential hike.

Currently, the tourist tax in District 1 stands at 50 CZK (about €2) per person, per night. However, local officials believe this amount is insufficient, particularly when compared to the average €7 charged by other European cities.

A report from the district’s Finance Committee highlighted that aligning with EU tax rates would not only increase revenue but also streamline the tax collection process.

District 1 Officials Seek Changes in Hotel Fee Distribution

Prague 1 officials have also called for changes in how hotel accommodation fees are allocated. At present, all hotel taxes are directed to the city’s central budget, with District 1 only collecting fees from hostels and boarding houses—25% of which is returned to the municipality. The district advocates either retaining all the collected fees or having 25% of hotel fees returned to support local development.

Given the impact of tourism on Prague’s city center, district representatives believe that tourists should contribute more to help cover the costs of public services.

Record Revenue from Tourist Tax in 2023

In 2023, Prague recorded a significant boost in tourist tax revenue, collecting 801 million CZK, an increase of 250 million CZK compared to the previous year. District 1 alone generated 262 million CZK from hotels and 22 million CZK from hostels, 25% of which was returned to the central budget.

Prague City Tourism also reported a notable rise in tourist spending, up 40% since 2019, with demand for luxury hotels surging by a third over the last year. 

Across the EU, other cities have also raised their tourist taxes. In 2024, new entry fees and increased tourist taxes are expected in destinations such as Santiago de Compostela, Figueira da Foz, Paris, and Amsterdam. The UK will also introduce a new system requiring visitors to pay a €7 fee.

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