Czech Republic Tourism Report Q4 2011

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Czech Republic Tourism Report Q4 2011 Published on August 2011

Report Summary Tourism Overview Czech tourism continues to show signs of recovery, following a sharp downturn in 2009. In the last two quarters of 2010, the Czech Republic recorded favourable growth in foreign tourist arrivals of 7% and 6.3% year-on-year (y-o-y) respectively. The most recent figures for Q111 show further sustained growth in foreign visitors of 7%, compared with the same period in 2010. Hospitality After promising hospitality data for foreign tourism in Q410, the early signs are encouraging for 2011. Figures for Q111 show a 6.5% rise in total overnight stays in all accommodation establishments, to some 7.4mn. Of these data, foreign tourist overnight stays increased a healthy 7.1% y-o-y, to around 3.6mn nights (some 49% of the total), while nights by domestic tourists rose by almost 6% y-o-y, to 3.8mn. Total guest numbers were up a favourable 8.5% y-o-y, with foreign and domestic guests increasing 7% and 10% respectively, compared with Q110. In the spa sector, nights by foreign tourists were up by nearly 5% y-o-y, while resident nights rose about 1%. Concerning the key markets for incoming tourists, arrivals from Germany (some 23% of the total in Q1) were up a modest 2% y-o-y, while visitors from Russia, continuing the recent surge in arrivals, rose a considerable 42% y-o-y (accounting for around 10% of all arrivals). Guest arrivals from Poland were also up a strong 12% y-o-y although the fourth and fifth most important source markets in Q1, Italy and the UK respectively, both recorded falls of more than 7% y-o-y. Forecast Scenario This quarter, we have raised slightly our annual growth forecast for foreign tourist arrivals in 2011 to 5.0%, with slightly weaker growth anticipated for 2012. These forecasts are underpinned by steady real GDP growth in the major source region, the eurozone, of 2.1% and 1.8% in 2011 and 2012 respectively. Economic growth in the key source market, Germany, however, is forecast to slow from 3.5% in 2011 to 2.0% in the following year. Concerning the koruna, we hold to an appreciation trend against the euro during 2011 and 2012, with an end-2012 target of CZK22.80/EUR. This is expected to have a dampening effect on foreign arrivals over the next few years. Prague Ruzyn' Airport Following on from negative annual growth in total passenger traffic (and international traffic) at Prague Ruzyn' Airport in 2009 and 2010 ' albeit a small decline in 2010 ' passenger numbers at the airport have recovered in early 2011. Latest figures for January-May record a 5.3% y-o-y rise in total traffic, with international passenger numbers up close to 6% y-o-y (and almost 8% y-o-y in May alone). Czech Airlines According to the press, in unaudited results domestic carrier Czech Airlines (CSA) recorded an operating loss of CZK1.1bn (US$58.9mn) in 2010, a sharp improvement on a year earlier. Although total revenue reportedly declined to CZK16bn (US$857mn), pre-tax profit came in at a favourable CZK120mn (US$6.4mn). Asset sales made a considerable positive contribution to the final results. The airline recorded a modest fall of 1.6% y-o-y in scheduled passenger numbers in 2010, with traffic of just over 4.6mn people. In June, CSA introduced direct flights from Slovakia's capital, Bratislava, to Amsterdam, Barcelona, Brussels, Larnaca, Paris and Rome. Smartwings/Wizz Air In June, low-cost Czech carrier SmartWings began a new regular route from Prague to Lamezia Terme (Italy). From winter 2011, the carrier will commence a Prague-Tel Aviv service, while flights will also operate between Prague and Thessaloniki. From December, Hungarian low-cost carrier Wizz Air will add Eindhoven to its destinations accessible from Brno ' its third European route from the city.

Table of Content Executive Summary SWOT Analysis

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Czech Republic Tourism Report Q4 2011 (From Issuu)

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Czech Republic Political SWOT

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Czech Republic Economic SWOT

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Czech Republic Business Environment SWOT Industry Forecast Scenario Arrivals

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Table: Arrivals Data, 2008-2015

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Accommodation

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Table: Hotels Data, 2008-2015 ('000, unless stated) Expenditure

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Table: Tourism Expenditure And Economic Impact, 2008-2015 Inbound Tourism

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Table: Tourist Arrivals, 2008-2015

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Outbound Tourism

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Table: Outbound Tourism Data, 2008-2015 Market Overview ' Travel

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Commercial Airlines

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Global Oil Products Price Outlook

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Table: Oil Product Price Assumptions, 2011 (US$/bbl)

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Table: Oil Product Price Forecasts, 2011-2015 (US$/bbl) Market Overview ' Hospitality

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Accommodation Developments Infrastructure

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Business Environment Outlook

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Table: Central And Eastern Europe Travel And Tourism Business Environment Ratings BMI's Security Ratings

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Table: Europe Security Risk Ratings

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Table: Europe State Vulnerability To Terrorism Index City Terrorism Ratings

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Table: BMI's Central And Eastern Europe And Central Asia City Terrorism Index Europe Security Overview

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Global Assumptions, Q4 2011

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Table: Global Assumptions, 2009-2015

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Table: Global And Regional Real GDP Growth, 2010-2013 (% change y-o-y) Table: Developed Market Exchange Rates, 2010-2013 (average) Table: Emerging Market Exchange Rates, 2010-2013 (average) Developed States

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Table: Developed States' Real GDP Growth, 2010-2013 (% change y-o-y) Emerging Markets

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Table: Emerging Markets' Real GDP Growth Forecasts, 2010-2013 (% change y-o-y) Company Profiles

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Czech Airlines

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Orea Hotels

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BMI Methodology

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How We Generate Our Industry Forecasts Tourism Industry

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Tourism Ratings ' Methodology

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Table: Tourism Business Environment Indicators

Czech Republic Tourism Report Q4 2011 (From Issuu)

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Table: Weighting of Components Sources

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