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Terra Economicus, 2022, 20(3): 133-145 DOI: 10.18522/2073-6606-2022-20-3-133-145
Impact of the COVID-19 pandemic on tourism in the Czech Republic
Sarka Tittelbachova
Metropolitan University Prague, Czech Republic, e-mail: sarka.tittelbachova@mup.cz
Andrea Cajkova
University of Ss. Cyril and Methodius in Trnava, Slovakia, e-mail: andrea.cajkova@ucm.sk
Michal Lukac
University of Ss. Cyril and Methodius in Trnava, Slovakia, e-mail: michal.lukac@ucm.sk
Petr Lzicar
Metropolitan University Prague, Czech Republic, e-mail: petr.lzicar@mup.cz
Citation: Tittelbachovâ S., Cajkovâ A., Lukâc M., Lzicar P. (2022). Impact of the COVID-19 pandemic on tourism in the Czech Republic. Terra Economicus 20(3), 133-145. DOI: 10.18522/2073-66062022-20-3-133-145
Our paper aims at scrutinizing and evaluating the impacts of COVID-19 pandemic on international and domestic tourism in the Czech Republic. Our methodology includes the analysis of empirical and statistical data provided by the statistical agencies that stems from the systematic and holistic literature review. The empirical research includes analysis and comparison of time series of economic indicators. The paper evaluates two groups of statistical indicators. The first group consists of domestic and inbound tourism in the Czech Republic. The second area of research is the analysis of the hotel sector in the Prague region. The analysis of the hotel industry focuses on the development of the following internationally used economic indicators: average daily rate, occupancy, and revenue per available room. Our results reveal that there were significant effects of the coronavirus pandemic both on the inbound and the domestic tourism which brought about a plethora of social and economic implications such as the decrease in the average occupancy of hotel rooms or the revenues for the tourism and hospitality sector. As a result of the pandemic, the tourism structure in the Czech Republic has changed significantly with the institutions of tourism undegoing serious transformational and structural changes that might take lots of time to revert and to mitigate by the relevant tourism authorities, stakeholders, and policymakers.
Keywords: tourism; hospitality; economic development; COVID-19; Czech Republic
Funding: The paper is a part of the internal research project VEGA 1/0720/19: Inovacné stratégie v regionâlnej politike so zameranim na rozvoj kulturnych institucii.
JEL codes: F14, F44
© ffl. THTre^tSaxoBa, A. HamoBa, M. ^yKai, n. .n^HHap, 2022
Влияние пандемии COVID-19 на туризм в Чехии
Титтельбахова Шарка
Метропольный Университет Праги, Чешская Республика, e-mail: sarka.tittelbachova@mup.cz
Чайкова Андреа
Университет св. Кирилла и Мефодия в Трнаве, Словакия, e-mail: andrea.cajkova@ucm.sk
Лукач Михал
Университет св. Кирилла и Мефодия в Трнаве, Словакия, e-mail: michal.lukac@ucm.sk
Лжичар Петр
Метропольный Университет Праги, Чешская Республика, e-mail: petr.lzicar@mup.cz
Цитирование: Tittelbachova S., Cajkova A., Lukac M., Iücar P. (2022). Impact of the COVID-19 pandemic on tourism in the Czech Republic. Terra Economicus 20(3), 133-145. DOI: 10.18522/20736606-2022-20-3-133-145
В статье проводится оценка воздействия пандемии COVID-19 на международный и внутренний туризм в Чешской Республике. Наша методология включает анализ статистических и эмпирических данных, предоставленных статистическими агентствами. Мы также опираемся на результаты систематического и целостного обзора литературы. Эмпирическое исследование включает анализ и сравнение временных рядов экономических индикаторов. В работе оцениваются две группы статистических показателей. Первая группа характеризует внутренний и въездной туризм в Чехии, вторая - гостиничный сектор в пражском регионе. Анализ гостиничной индустрии фокусируется на развитии следующих экономических показателей, используемых в международном масштабе: средняя дневная стоимость, заполняемость и доход в расчете на один свободный номер. Результаты показывают, что пандемия коронавирусной инфекции оказала значительное влияние на въездной, а также на внутренний туризм, что, принесло множество социальных, а также экономических последствий, таких как, например, снижение средней заполняемости гостиничных номеров или доходов сектора туризма и гостеприимства. В результате пандемии COVID-19 институты туризма претерпели серьезные трансформационные и структурные изменения. Восстановление сектора и смячение негативных последствий требует времени и усилий со стороны соответствующих туристических органов, заинтересованных сторон и политиков.
Ключевые слова: туризм; гостеприимство; экономическое развитие; COVID-19; Чешская Республика
Финансирование: Данная статья является частью внутреннего исследовательского проекта ВЕГА 1/0720/19: Инновационная стратегия в региональной политике с акцентом на развитие культурных институтов.
Introduction
It can be proclaimed that COVID-19 pandemic has created previously unknown situations and new models of interactions within our society. The crisis has shown that restrictive measures are not beneficial for the economy and are popular with the general public (Arias-Maldonado, 2020; Faggioni
et al., 2021; Strielkowski et al., 2022). All of these caused extensive damage and numerous issues, especially of an economic nature, inter alia in tourism, and specifically in the hospitality sector (Khalid et al., 2021; Ozbay et al., 2021; Peco-Torres et al., 2021; Kennedy et al., 2022).
One of the first research papers deveoted to the measuring the potential impact of the corona-virus-induced restrictions on the travel tourism industry in the short and long run, both worldwide and on a geographical level, was the work of Skare et al. (2021). The paper attempted to explore what was expected to be the negative consequences for the travel and tourism industry. The conclusions demonstrated that the coronavirus crises had long-lasting negative effects on the tourism industry and economy. Estimated negative effects were far beyond those observed during past similar crises. It appears that future pandemics should be dealt with promptly, and in order to do so, policymakers and practitioners need to come up with some effective contingency plans. Moreover, Skare et al. (2021) also showed that the pandemic effects of COVID-19 on the tourism industry shared the effect of a common shock. Thence, a revival of the tourism industry worldwide would need cooperation rather than competition to minimize the costs and the adverse effects of the coronavirus disaster.
Surely, this comprehensive research was preceded by many partial, real-time assessments of the effects brought about by the COVID-19 disaster on the right to participate in hospitality and tourism and trying to illustrate where such rights are under threat (Baum and Hai, 2020). Other research has been conducted from a geographical perspective (Jaipuria et al., 2021; Deb and Nafi, 2020; Mariolis et al., 2021; Sah et al., 2020) revealing the direct repercussions on tourism and hospitality in each country, such as for example, in Croatia, as a result of the pandemic and the country's dependence on the tourism sector. They found that Croatia would experience one of the largest declines in GDP (up to 10%) among European countries in 2020. Using the Croatian tourism sector as an example, the results of our research suggest the negative shock of the global pandemic on tourism may have established a new trend though at a much lower level. While international tourism has bounced back from previous crises, including similar outbreaks of the infectious diseases, these episodes were generally more localized (Payne et al., 2021; Martinez and Short, 2021). Also, there are more inspiring analyses examining the links between the effects on other areas of life, such as impact on the environment (Nagaj and Zuromskaite, 2021). Some authors tackled the changes in consumer behavior and the marketing process (e.g. Navratilova et. al. 2020; Streimikiene and Korneeva, 2020).
On the other hand, many research papers and reports provide concrete solutions to the crisis effects on the sector. Abbas et al. (2021) considered the consequences of the COVID-19 disease and suggested changes in approaches to the organization of the industry. They argued that it was necessary to take advantage of the innovations and changes that arise from the new structure of the tourism industry. The authors also discussed possible perspectives for the development and revival of tourism. They commented on the new procedures for the development of the sector and recommended competitive options for activities of the business entities. Furthermore, they suggested possible reforms and support for the public sector. The cited authors mentioned activities aimed at recovering tourism to its pre-COVID-19 state.
Tourism is one of the sectors of the national economy in the Czech Republic most affected by the pandemic. The measures carried out by the Czech state authorities for preventing the outcomes of the lockdowns and restrictions meant a mandatory interruption of work activities and considerable financial losses for tourism entrepreneurs. According to the Tourism Satellite Account, value-added in tourism in the Czech Republic has fallen by half due to the pandemic1. Several authors have examined the ramifications of the coronavirus pandemic on tourism in the Czech Republic. Novotny and Pelesova (2021) evaluated the quality of measures during the coronavirus crisis. The authors analyzed the legal aspects of the crisis tourism sector. Kral (2020) discusses the Lex Voucher Act, which solved the crisis in the travel agency sector. Vaishar and Stastna (2020) examine the economic aspects of the covid pandemic. They discuss the possibilities of developing new forms of tourism and changes in consumer behavior. The authors are considering prospects for the development of rural tourism as a result of the coronavirus.
Our paper complements the above-mentioned research. We also expand the issues in the field of institutionalist economic approach to analysing the impacts on the toursm and hospitality sector.
The research gap is particularly evident in the absence of comprehensive analyzes of empirical statistics on the consequences of the coronavirus. Our analysis is based on the current macroeconomic and microeconomic data. Therefore, it provides a new insight of the course of the coronavirus crisis in the Czech Republic. Unlike some previous papers mentioned before, it also covers the beginning of the convalescence period.
Research objective and methodology
The paper assesses the effects of the recent coronavirus desease on the tourism in the Czech Republic. We analyse and compare the impact on inbound and domestic tourism in the country. We also quantify the effects of COVID-19 pandemic on the regional differentiation of tourism in the Czech Republic. Another important research objective is the economic analysis of the hotel industry in the Prague region.
Our methodology includes the analysis of empirical statistical data and a systematic literature review. The theoretical frameworks is shaped relying on a comprehensive review of research papers or reports by national authorities and international organizations. The analysed sources examine tourism and hospitality. The research includes the material from the Czech Republic, European Union countries, as well as the groundwork covering the issues of global tourism economy.
The empirical research includes analysis and comparison of time series of economic indicators. The paper evaluates two groups of statistical indicators. The first group consists of domestic and inbound tourism in the Czech Republic. The time series of tourism in the Czech Republic covers the period 2012-2022. In 2022, data are only available for the first quarter. This is because the COVID-19 had the highest influence on tourism in the Czech Republic in 2020 and 2021. The analysed time series should show a period before the start of the pandemic (2012-2019), the period of the epidemic (2020-2021), and the short time of recovery (the first quarter of 2022). This part aims to evaluate the effects on inbound and domestic tourism.
We also compare the regional differentiation of tourism in the Czech Republic. According to the European Union classification, we analyze regions at the NUTS 3 level. Those are the following regions: Prague Region, Central Bohemian Region, South Bohemian Region, Plzen Region, Karlovy Vary Region, Usti nad Labem Region, Liberec Region, Hradec Kralove Region, Pardubice Region, Vysocina Region, South Moravian Region, Olomouc Region, Zlin Region, and Moravian-Silesian Region.
We use the coefficient of variation to evaluate regional differences between the Czech regions. We compare the development of differences in the whole period 2012-2022. In the years 2020-2021. We also evaluate the results of the coronavirus-induced restrictions on the regional differentiation of tourism in the Czech Republic. The coefficient of variation is the ratio of the standard deviation to the arithmetic mean. The results of the coefficient of variation describe the development of disparities within the monitored group of regions. The coefficient of variation is given by the ratio of the standard deviation and the arithmetic mean. The standard deviation is defined as the square root of the variance and is a measure of the variance of the observed feature around the mean. We express the coefficient of variation in percent (multiply the value by one hundred). Within the time series, we will evaluate the development of the coefficient of variation. An increase in the coefficient of variation means an increase in the differences between the regions. The decrease in the percentage values of the coefficient of variation is the waning in the regional differentiation of tourism. In analyzing regional differentiation, we ask the research question of whether the pandemic had a greater impact on the development of urban or rural regions. We consider the assumptions of some authors (that COVID-19 should contribute to the development of rural tourism and other forms of sustainable travel.
As mentioned above, the second research objective is the analysis of the hotel sector in the Prague region. The economic analysis of the hotel sector deepens and complements the research on the development of tourism. Prague is the most significant region for international tourism in the Czech Republic (Strielkowski, 2016; Mitsche and Strielkowski, 2016; Kljucnikov et al., 2018). Moreover, Prague is the region with the highest number of foreign arrivals. The hotel industry is one of the tourism sectors with the highest turnover in the Czech Republic. Our analysis aims at indicators that show financial performance and stability similar to other related studies conducted in the country (Lzicar et al., 2019). Thence, we analyse following internationally used economic indicators:
• Average daily rate (ADR) expreses the average daily price per occupied room;
• Occupancy (in %) is the ratio of occupied rooms to their total number for a certain period of time (month, year, etc.);
• Revenue per Available Room (RevPAR) is the price of the available room - Revenue per Available Room describes the economic performance of the hotel. The hotel management aims to sell at the highest possible prices, and achieve the highest possible occupancy. The revenue per available room indicator combines both occupancy and price.
Results
Relying on available data provided by Czech Statistical Office, we can deduce trends in tourism in the last decade. Tables 1 and 2 illustrate the time series of domestic and inbound tourism. The number of foreign and domestic tourists between 2012-2019 was constantly growing. Tourism in the Czech Republic follows world trends. The number of international arrivals increased by almost 40% between 2012 and 2019. Domestic tourism has increased by as much as 45%. Statistics confirm the sharp turnaround due to the coronavirus. Since March 2020, the number of domestic and foreign arrivals has been dwindling. From Table 2 we can find that the reduction in domestic tourism in 2020 was almost 30% and incoming even 75%. The adverse effect of the pandemic on tourism was also evident in 2021. Although the number of tourists increased slightly (by about 10%), the numbers from 2019 did not come close to the Czech Republic. The effects of the COVID-19 on tourism in the Czech Republic are completely unique. Compared to the previous financial and debt crisis, they are more than ten times higher2.
If we compare the Czech Republic with other destinations, the development was in line with global trends. However, we can find some specifics in the European context. The decrease in 2020 was not as significant as in traditional tourism destinations. However, the recovery is still below average when compared to the situation in other European Union countries. The authors of this article estimate that the slow recovery is due to changes in tourists' consumer preferences. In 2021, tourists preferred rural destinations, coastal regions, and sustainable forms of tourism. Central European urban areas were less visited. A slower recovery was also evident in other Central European countries (Hungary, Slovakia or Austria).
Based on these data from 2020 and 2021, we can observe the shrinking and stagnation of tourism due to the pandemic. We can observe a revival of tourism in the Czech Republic only in the first quarter of 2022. The statistical data for the first quarter is not entirely meaningful. We ranked them due to changing trends in the tourism industry since we should analyze the increase in tourism in a broader context. Compared to the first quarter of 2021, we see growth in domestic tourism by hundreds of percent. Inbound tourism has even increased by more than 1000%. But the enormous percentage increase does not exactly correspond to reality. The authors of this article perceive the increase compared to 2021 as a statistical bias. In the first quarter of 2021, the Czech Republic had a high number of hospitalized patients with COVID and the level of restrictions in the economy was very high. It becomes obvious that tourism reached minimum values.
As a result of the COVID-19 lockdowns, the tourism structure in the Czech Republic has also changed significantly. The reduction in domestic tourism was lower than inbound. There was an increase in domestic tourists in the number of arrivals, which was in line with global developments. The decrease in foreign arrivals was associated with a change in the structure of foreign markets. Tables 1 and 2 illustrate that neighboring countries (Germany, Slovakia, and Poland) were the main arrival markets before the pandemic. These countries followed the United States, China, as well as Russia. South Korea was also in the top ten countries with the highest arrivals in the Czech Republic. The increase in arrivals from China and South Korea was very rapid. The reason was the increasing interest of Asian tourists in Czech cities, cultural and historical monuments, and spas (Tracz and Ba-jgier-Kowalska, 2019; Tyslova et al. 2020). The growing number of direct flights to Korea and China had a positive impact on tourism. In addition to Prague, the town of Cesky Krumlov in the South Bohemian Region was also a popular destination.
Table 1
Development of inbound and domestic tourism in the Czech Republic (2012-2022)
2012 2014 2016 2018
Country (Region) Arrievals Country (Region) Arrievals Country (Region) Arrievals Country (Region) Arrievals
Czechia (residents) 7451773 Czechia (residents) 7491191 Czechia (residents) 9067413 Czechia (residents) 10635756
Germany 1521246 Germany 1553370 Germany 1881095 Germany 2031104
Russia 731835 Russia 391198 Slovakia 642145 Slovakia 730954
Slovakia 435595 Slovakia 492550 Poland 541332 Poland 620495
Poland 401997 Poland 448736 United States 515154 China 617935
United States 390635 United States 441457 Great Britain 473986 United States 554394
Italy 374651 Great Britain 397431 United States 407529 Russia 544216
Great Britain 368005 Italy 369268 Italy 370511 Great Britain 494939
France 296298 Other Asian countries 290615 China 355847 South Korea 415166
Other Asian countries 256728 France 272650 South Korea 325612 Italy 408422
Source: Own results based on the Czech Statistical Office (2022). Tourism - time series. [Dataset]. https:// www.czso.cz/csu/czso/cru_ts (accessed on 5 May 2022)
Table 2
Development of inbound and domestic tourism in the Czech Republic (2019-2022)
2019 2020 2021 2022 (the first quarter of 2022)
Country (Region) Arrievals Country (Region) Arrievals Country (Region) Arrievals Country (Region) Arrievals
Czechia (residents) 11107866 Czechia (residents) 8052274 Czechia (residents) 8813943 Czechia (residents) 1922280
Germany 2075460 Germany 814541 Germany 687479 Germany 234290
Slovakia 749631 Poland 290316 Slovakia 329554 Slovakia 98112
Poland 671857 Slovakia 272476 Poland 234180 Poland 78639
China 609727 Russia 132033 Netherlands 98948 Ukraine 46803
United States 584627 Great Britain 125565 France 98725 Great Britain 44484
Russia 564083 Italy 89050 Austria 95678 France 33587
Great Britain 495728 Austria 88970 Italy 93151 Italy 32521
Italy 409731 France 82339 United States 89629 Netherlands 32307
South Korea 387563 Netherlands 81655 Israel 74926 Austria 29215
Source: Own results based on the Czech Statistical Office (2022). Tourism - time series. [Dataset]. https:// www.czso.cz/csu/czso/cru_ts (accessed on 5 May 2022)
During the pandemic, the number of tourists from Asian countries (China, South Korea, Japan, etc.) in the Czech Republic decreased significantly due to limited travel opportunities. Tourists from the USA do not begin to return until the second half of 2021. Arrivals from European destinations are growing. The outbreak of the coronavirus infection meant a change in travel planning. Destinations accessible by car have become more popular. In addition to traditional inbound countries (Germany, Poland, and Slovakia), there was an increase in arrivals from France, Italy, the Netherlands, and Austria. The novelty is the rapid growth of the Israeli market.
Tourism is unevenly distributed in the Czech Republic. The dominant region in the period 2012-2020 was the Prague region. As already mentioned, the reason was mainly a large decline of foreign tourists. Other attractive regions in terms of tourism included the Bohemian Fair, South Moravian, and Hradec Kralove region. The regions with the lowest number of arrivals were the Vy-socina region, the Pardubice region, and the Usti nad Labem Region. The spread of the coronavirus and subsequent restrictions have changed the regional differentiation of tourism. The reduction in inbound tourism meant the highest downturn in the Prague Region and other urban areas (especially the city Brno in the South Moravian Region).
Table 3
Regional differences in tourism arrivals
Distribution oftourist arrivalsin regions of
the Czec h Republic
Year Coefficient of
variationin %
2012 126,7
2014 131,8
2016 130,2
2018 124,3
2019 122,1
2020 62,8
2021 64,5
2022 (the first 87,8
quarter of 2022)
Source: Own results based on the Czech Statistical Office (2022). Tourism - time series. [Dataset]. https:// www.czso.cz/csu/czso/cru_ts (accessed on 5 May 2022)
In contrast, in regions such as the Vysocina, Pardubice and South Bohemian, a lower overall decline was recorded due to the development of domestic tourism.
We evaluated the regional differentiation of tourism statistics using the coefficient of variation. Table 3 ilustrates the values of the coefficient of variation. The ramifications of the coronavirus-induced lockdowns on regional disparities are relatively clear. The crisis has caused a reduction in regional disparities and a greater spread of tourism across the territory of the Czech Republic. The values of the coefficient of variation are reduced by almost half in 2020 and 2021 compared to 2019. The recovery of tourism in the first quarter of 2022 is again associated with an increase in disparities. The values of the coefficient of variation gradually increase. The highest number of tourists compared to 2021 is evident in the Prague region. The dominance of Prague is not the same as before the pandemic, so the values of the coefficient of variation do not reach the values from 2019.
So far, the values from 2021 are closer. The variation coefficient indicator allows us to evaluate changes in the distribution of tourism in the Czech Republic very well. The values of the coefficient of variation copy the decreases and post-coronavirus increases.
Table 4
Distribution of tourist arrivals in regions of the Czech Republic (2012-2018)
2012 2014 2016 2018
Regions Arrievals Regions Arrievals Regions Arrievals Regions Arrievals
Prague region (PRG) 5726454 PRG 6096015 PRG 7127558 PRG 7892184
South Moravian Region (SMR) 1317690 SMR 1499974 SMR 1647533 SMR 2040627
South Bohemian Region (SBR) 1107452 SBR 1176046 SBR 1446905 SBR 1726991
Hradec Kralove Region (HKR) 968571 HKR 936736 HKR 1158127 HKR 1342757
Karlovy Vary Region (KVR) 853204 CBR 799530 KVR 948871 CBR 1122095
Central Bohemian Region (CBR) 809043 KVR 776671 CBR 939041 KVR 1118003
Liberec Region (LBR) 753932 MSR 703009 LBR 863520 LBR 997213
Moravian-Silesian Region (MSR) 698746 LBR 700144 MSR 816653 MSR 985795
Plzen Region (PLR) 595138 ZLR 603414 ZLR 686935 PLR 839900
Zlin Region (ZLR) 571719 PLR 568746 PLR 660011 ZLR 779124
Olomouc Region (OLR) 474868 OLR 487641 OLR 600106 OLR 700112
Usti nad Labem Region (ULR) 438715 VNR 447603 ULR 527461 ULR 632150
Vysocina Region (VNR) 416842 ULR 431882 VNR 522415 VNR 602487
Pardubice Region (PAR) 366443 PAR 359665 PAR 443717 PAR 467712
Legend: Pardubice Region=PAR, Vysocina Region=VNR, Usti nad Labem Region=ULR, Olomouc Region=OLR, Plzen Region=PLR, Moravian-Silesian Region=MSR, Liberec Regin=LBR, Central Bohemian Region=CBR, Karlovy Vary Region=KVR, Hradec Kralove Region=HKR, South Bohemian Region=SBR, South Moravian Region=SMR, Prague region=PRG.
Source: Czech Statistical Office (2022). Tourism - time series. [Dataset]. https://www.czso.cz/csu/czso/ cru_ts (accessed on 5 May 2022), own processing
The microeconomic effects of the COVID-19 are illustrated in more detail by an analysis of the hotel industry, which we conducted in the Prague region. The strong influence of the crisis confirms a significant drop in the analyzed economic indicators (see Table 6). The effects of the crisis on the hotel industry were recorded on all analyzed economic indicators.
Table 5
Distribution of tourist arrivals in regions of the Czech Republic (2019-2022)
2019 2020 2021 2022 (the first quarter of 2022)
Regions Arrievals Regions Arrievals Regions Arrievals Regions Arrievals
Prague region (PRG) 8044324 PRG 2182443 PRG 2354720 PRG 757682
South Moravian Region (SMR) 2137259 SMR 1170773 SMR 1331887 HKR 345598
South Bohemian Region (SBR) 1788911 SBR 1120104 SBR 1119451 LR 238217
Hradec Kralove Region (HKR) 1412307 HKR 995037 HKR 939280 SMR 205621
Karlovy Vary Region (KVR) 1190296 LBR 774686 CBR 781785 KVR 192654
Central Bohemian Region (CBR) 1172951 CBR 693980 LBR 722461 MSR 175797
Liberec Region (LBR) 1048865 KVR 677441 KVR 710460 SBR 153953
Moravian-Silesian Region (MSR) 1015746 MSR 612681 MSR 645902 OLR 135808
Plzen Region (PLR) 871893 PLR 533620 ZLR 555228 CBR 127607
Zlin Region (ZLR) 808451 ZLR 500512 PLR 554582 PLR 122314
Olomouc Region (OLR) 761615 OLR 472051 OLR 469007 ZLR 114835
Usti nad Labem Region (ULR) 659902 VNR 397509 VNR 450699 VNR 82630
Vysocina Region (VNR) 605326 UNR 383341 UNR 396878 UNR 79095
Pardubice Region (PAR) 480520 PAR 322270 PAR 351261 PAR 79061
Legend: Pardubice Region=PAR, Vysocina Region=VNR, Usti nad Labem Region=ULR, Olomouc Region=OLR, Plzen Region=PLR, Moravian-Silesian Region=MSR, Liberec Regin=LBR, Central Bohemian Region=CBR, Karlovy Vary Region=KVR, Hradec Kralove Region=HKR, South Bohemian Region=SBR, South Moravian Region=SMR, Prague region=PRG.
Source: own results based on the Czech Statistical Office (2022). Tourism - time series. [Dataset]. https:// www.czso.cz/csu/czso/cru_ts (accessed on 5 May 2022)
The average occupancy decreased from 80% in 2019 to 21% in 2020. The average daily rate was reduced from CZK 2,300 in 2019 to CZK 1,700 in 2020. The most important RevPar indicator fell by approximately CZK 1,800 before the crisis to 400 CZK.
Table 6
Economic indicators in the hotel industry in Prague Region
Year Occupancy % ADRCZK RevPAR CZK
2014 70,6% 1999 1411
2015 75,1% 2140 1606
2016 77,1% 2199 1696
2017 80,1% 2298 1841
2018 78,7 % 2328 1831
2019 78,9% 2358 1859
2020 20,7% 1702 352
2021 26,1% 1786 465
Source: own results based on STR Global (2022). Data Solutions. https://str.com/data-solutions (accessed on 3 May 2022)
Table 7
Economic indicators in hotel industry (European Cities)
Cities Occupancy %
2020 2021 January 2022 February 2022 March 2022
Prague Czech Republic 20,7 26,1 18,7 27,9 42,3
Vienna Austria 24,4 29,4 18,5 26,5 41,7
Budapest Hungary 21,8 31,5 33,9 41,3 54,4
Bratislava Slovakia 23,3 22,4 27,8 28,4 42,7
Berlin Germany 31,8 37,9 27,4 35,1 50,1
Paris France 30,4 43,4 35,4 49,1 68,8
Munich Germany 29,0 33,5 23,8 32,7 41,8
Warsaw Poland 27,4 36,7 36,5 45,6 82,5
Cities ADR (in EUR)
2020 2021 January 2022 February 2022 March 2022
Prague Czech Republic 64,38 69,66 73,03 67,88 74,53
Viena Austria 90,63 97,99 96,40 92,57 91,79
Budapest Hungary 80,92 93,40 88,16 79,13 86,50
Bratislava Slovakia 66,11 68,49 69,27 65,42 72,63
Berlin Germany 84,19 82,99 75,88 79,49 84,25
Paris France 162,41 213,00 208,98 203,67 237,04
Munich Germany 91,76 91,31 84,10 100,54 90,05
Warsaw Poland 59,94 57,73 57,69 58,38 70,88
Cities RevPAR (in EU R)
2020 2021 January 2022 February 2022 March 2022
Prague Czech Republic 13,34 18,15 13,64 18,97 31,55
Vienna Austria 22,16 28,78 17,80 24,55 38,24
Budapest Hungary 17,68 29,44 29,85 32,68 47,02
Bratislava Slovakia 15,41 15,36 19,25 18,56 30,99
Berlin Germany 26,76 31,46 20,80 27,92 42,22
Paris France 49,32 92,42 73,92 100,06 163,08
Munich Germany 29,57 30,56 20,02 32,86 37,67
Warsaw Poland 16,40 21,18 21,07 26,62 58,50
Source: STR Global (2022). Data Solutions. https://str.com/data-solutions (accessed on 3 May 2022), own processing
Table 7 shows an international comparison of the Prague region and other cities (Paris, Berlin, Vasava, Vienna, Budapest and Bratislava). The comparison does not look favorable. Compared to other cities, the Prague region shows significant economic diminution of applicants during the crisis and a slower recovery in 2022. However, the year 2022 belongs to the post-Pididian recovery. In particular, the data for March indicate a better tourist season than in 2021.
Conclusions
Based on statistical data and analyses, we can confirm the significant impacts of the COVID-19 pandemic on inbound but also on the domestic tourism in the Czech Republic. Our results demonstrate that the downturn in economic indicators of the hotel industry in Prague was higher than in the case of inbound tourism in the Czech Republic. In general terms, tourism in the Czech Republic shows similar trends to the European and global markets. The recovery of the tourism sector and the return to pre-coronavirus income and arrival values is likely to be a medium-term process for several years. Despite the fact that the initial decrease was not that significant, the overall effects of the coronavirus in the Czech Republic would probably be above average in European comparison. The recovery process is slower so far compared to Western and Southern European tourism destinations. The further development of post-pandemic recovery represents a promising area for further research.
As a result of the coronavirus lockdowns, the tourism structure worldwide has changed significantly. In the Czech Republic, as well as in Europe and in the world, domestic and international tourism developed differently. The effects of the pandemic were smaller for the domestic tourism. The cut in the number of foreign arrivals was associated with a change in the structure of foreign markets. During the pandemic, the number of tourists from Asian countries (China, South Korea, Japan, etc.) in the Czech Republic decreased significantly due to limited travel opportunities. Tourists from the USA did not begin to return until the second half of 2021. On the other hand, arrivals from the European destinations are growing. The COVID-19 virus meant a massive change in travel planning. Destinations accessible by car have become more popular and used. In addition to traditional inbound countries (Germany, Poland, and Slovakia), there was an increase in arrivals from France, Italy, the Netherlands, as well as Austria.
All in all, the COVID-19 pandemic and subsequent restrictions have changed the regional differentiation of tourism. The reduction in inbound tourism meant the highest slackening in the Prague Region and other urban areas (especially the city Brno in the South Moravian Region). In contrast, in the Vysocina, Pardubice and South Bohemian regions, a lower overall waning was recorded due to the development of domestic tourism. In recent years, tourism participants have increasingly visited natural attractions and rural regions. We do not consider the changes in the regional differentiation of tourism to be permanent. Unlike some authors (Vaishar and Stastna, 2020), we expect a gradual return of tourism to mass trends in the nearest future.
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