PRAGUE REGION
Prague is an important cultural and artistic hub, its centre with an area of 1 106 hectares is included in the UNESCO Cultural Heritage List, which makes the city one of the most sought-after tourist destinations in the EU. In size, the city is the smallest region, while the number of its population is the second largest, with more than 15 % of its inhabitants being foreigners. The Region has the lowest unemployment rate on a long-term basis and the highest wages. Housing construction in Prague is the second highest, after the Central Bohemia Region. Altogether 113 000 students are enrolled in Prague´s universities, which accounts for 39 % of all university students in the Czech Republic. Prague´s collective accommodation facilities, with 93 000 beds, have the highest capacity of all the country´s regions.
ECONOMIC POTENTIAL Prague generates about one-quarter of the country´s gross domestic product (GDP). Higher GDP creation rate is typical of capital cities, due to a number of factors, for example: a large proportion of people working in Prague and generating value added there, are not resident in the capital, most of the central bodies of the public and private sectors are concentrated in the city and a number of firms having their headquarters in Prague are not registered there, which also includes foreign affiliations of supranational companies. The indicators of net disposable income of households, i.e. values the households have for saving or consumption, however, show that Prague exceeds the per capita national average much less than is the national average. Prague is an economy oriented on services. Since the year 2000, services have been creating more than 80 % of the capital´s value added, with most of the employed people in the city (81 %) working in services. Prague is the hub of all the country’s motorway routes and is also an important international railway junction. Prague Main Railway Station has undergone a total reconstruction, which was completed in 2011. Passenger and air freight transport is operated mainly by Václav Havel Airport. At the beginning of 2021 the airport was prepared for a gradual comeback of airlines and passengers and the operation of direct air flights to more than twenty destinations. The operation of further direct flights will depend especially on the development of the epidemiological situation, which will decide about the potential release of travel restrictions. An important role will also be played by the extent and
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The Czech Republic – Your Business Partner in the EU
speed of vaccination in Europe and by uniform flying rules. In 2020, the airport operated 54 163 takeoffs and landings. The busiest month of the year 2020, taking into account the outbreak of the COVID-19 pandemic, was January, when altogether 1 051 028 passengers were processed, a historic record for that month. The largest number of passengers used regular flights to and from the UK, France, Italy, Russia, and Spain. The most popular destination in 2020, as in previous years, was London, with flights to and from all its six international airports, followed by Amsterdam, Paris, Moscow, and Frankfurt. According to an analysis made by KPMG for the Prague Convention Bureau in 2017, the congress industry accounts for 15 % of Prague´s tourist traffic. At the same time, however, it is a sector affected most by the crisis provoked by the Covid-19 pandemic. According to the latest study of Economic Impact, company revenue in 2020 may fall by more than CZK 20 billion. This is 74 % less than the expected sum in normal conditions. The congress industry characterised by great international overspills was subdued already when the first information about the spread of the new virus appeared in other countries. The activities affected first by the necessary measures taken by the governments of most countries were mass get-togethers, including business ones. Prague congress industry generates around 80 % of the performance of the entire Czech Republic in the international association event sector on a long-term basis according to the International Congress and Convention Association (ICCA). In addition, before the outbreak of the crisis, Prague´s congress industry was on the rise and the Czech capital held its position among the world´s TOP 10 congress destinations for several years running. In 2019 it placed ninth ranking among destinations such as Paris, Berlin, Barcelona, London, Vienna, and Singapore. In addition, Prague is showing a steady increase in the number of events. In 2019, the number of conferences held in collective accommodation facilities once again broke the record, when altogether 5 668 events were held there, 25 % more than in 2008, according to the Czech Statistical Office, which is the highest number since 2009. Prague´s congress industry is a sector not only of key economic importance, but also of great social and scientific significance for the country and its people. Considering the fact that, according to the long-term statistics of Prague Convention Bureau, more than 50 %
Photo: © CzechTourism archives, Author: COEX.cz
Prague is one of the most attractive and successful regions in Central Europe. It represents a relatively dynamically developing and successful region, repeatedly ranked by Eurostat among the ten wealthiest regions in the European Union (measured by gross domestic product per inhabitant). In terms of the number of inhabitants, it is the 15th largest city in the EU, and, regarding area, Prague ranks among medium-sized cities in the EU, with an area of 496 sq. km.
