Tourism Trends in Prague in 2Q 2014 Summary: Total guests: 1,590,310 non-resident: 1,391,469 (87.5%) domestic: 198,841 (12.5%) Slight 0.9% decline in overnight trips to Prague Inbound visits edge up by 0.4% Visitor numbers from CZ down 10% Main negative factors associated with the decline in visitor numbers: Russian-Ukranian crisis Ongoing economic problems in France Source markets: Germany, Russia, USA Nearly 65% of all visitors arrive from Europe Top 10 countries provide 53% of all arrivals Greatest gains: Germany, China and Poland After a long hiatus, Spanish visitors increase Total nights: 3,878,923 non-resident: 3,520,678 (91%) domestic: 358,245 (9%) Average length of stay: 2.4 nights Non-residents: 2.5 nights; Residents: 1.8 nights Guests from Russia stayed in Prague the longest – an average of four nights The net occupancy rate (NOR) at hotels was 59.2% for bed-places and 72.1% for rooms Five-star hotels had the highest occupancy rates – 64.7% for bed-places and 76.5% rooms Visits During 2Q 2014 there were a total of 1,590,310 overnight trips to Prague. Of this number, 198,841 (12.5%) were domestic overnight trips and 1,391,469 (87.5%) inbound visits. In a year-on-year comparison of 2Q 2014 and 2Q 2013, guest numbers fell by 0.9% or 14,229 visitors. Whereas the number of resident guests dropped by 20,322 visitors (9.3%), non-resident overnight trips increased slightly by 6,093 (0.4%). This came in spite of the fact that tension between Russia and the European Union and United States has had a negative impact on tourism and the falling rouble dramatically increased the cost of travel to the Czech Republic. May was the strongest month in the second quarter, even though guest numbers in all three months were nearly the same. Number of guests in collective accommodation establishments in Prague – 2Q 2014: Month Number of guests Growth/Decline Growth/Decline (%) April 517,674 +18,007 +3.6 May 547,678 -47,481 -8.0 June 524,958 +15,245 +3.0 1,590,310 -14,229 -0.9 2Q 2014 Nights The total number of nights in accommodation establishments in Prague reached 3,878,923 in 2Q 2014, which is down 103,464 nights (-2,6%) year-on-year. The decline in the number of nights was reflected in both domestic and non-resident visitors to Prague. It was caused by the negative trend in May, when the total number of nights plummeted nearly ten percent. Russia accounted for half of the May decline. Non-resident visitors to Prague accounted for 90.8% of all nights in the city. The number of nights by non-residents totalled 3,520,678, while the total for residents was 358,245. Number of overnight stays in collective accommodation establishments in Prague – 2Q 2014: Month Number of overnight stays Growth/Decline Growth/Decline (%) April 1,286,982 +21,982 +1.7 May 1,341,620 -144,161 -9.7 June +18,715 1,250,321 2Q 2014 3,878,923 -103,464 The average length of stay fell slightly (-0.1 nights) in the overall and non-resident categories, and remained unchanged for residents. Total: 2.4 nights Non-residents: 2.5 nights Residents: 1.8 nights 1. Residents +1.5 -2.6 Number of residents in collective accommodation establishments in Prague – 2Q 2014: Month April Number of residents 67,301 Decline Decline (%) -5,355 -7.4 May 67,231 -9,857 -12.8 June 64,309 -5,110 -7.4 198,841 -20,322 -9.3 2Q 2014 Number of overnight stays in collective accommodation establishments in Prague – 2Q 2014: Month Number of overnight stays Decline Decline (%) April 116,592 -23,156 -16.6 May 122,975 -19,633 -13.8 June 118,678 358,245 -12,151 -9.3 -54,940 -13.3 2Q 2014 2. Non-residents Number of non-residents in collective accommodation establishments in Prague – 2Q 2014: Month April Number of non-residents 450,373 Growth/Decline Growth/Decline (%) +23,362 +5.5 May 480,447 -37,624 -7.3 June 460,649 +20,355 +4.6 1,391,469 +6,093 +0.4 2Q 2014 Source markets Broken down by nationality, most visitors in the second quarter of 2014 arrived from Germany, with Russia and distant second. The third most numerous group was from the United States. In this regard, nothing has changed compared to the previous two years. Russia retained its second-place position despite the relatively considerable decline in guest numbers in April and May, which is a consequence of the Russian-Ukrainian conflict. Although the Germans celebrated Easter in Prague, May was marked by a decline in the number of German visitors, with numbers recovering in June. Overall there was a quite significant, nearly ten-percent increase in guest numbers. Except in June, U.S. visitor numbers experienced a slight decline. Top 10 markets with the highest total visits – 2nd quarter 2014: Place 1 2 3 4 5 6 7 8 9 10 Country Germany Russia USA United Kingdom Italy France Poland Slovakia Other Asian Countries* Spain Number of guests 201,399 119,129 109,919 78,614 76,469 63,648 53,552 52,021 46,287 39,642 *Note: “Other Asian Countries” do not include China, India, Israel, Japan or South Korea, which are tracked separately by the Czech Statistical Office. The composition and ranking of the Top 10 source markets remains the same as last year. Only Poland and Slovakia have switched places, but the difference in visitor numbers is negligible. As in the last quarter, visitors from France continued to decrease. Other European cities are also experiencing a decline in French tourist numbers. There were also fewer Italians and Britons arriving in the city compared to the same period last year. In contrast, after a long decline, Prague and other cities are starting to see an increase in Spanish tourists. Of the other countries, rising interest among visitors from Ireland, Austria, China, Israel and South Korea is worthy of note. Outside the Top 10, the Czech Statistical Office recorded large declines in visitors from Ukraine, Japan and South America (especially Brazil). In all cases these were continuing negative trends that started in the first quarter. The following graph shows that in comparison to 2Q 2013, the percentage of European and Asian visitors out of all overnight trips has increased, while Russian and South American visitors have dwindled. In absolute terms, the number of European and Asian overnight trips has risen year-on-year, while Russian and South American visitors have fallen and North American, African and Australian visitors have stagnated. Absolute growth in inbound tourism to Prague Prague experienced a very slight, 0.4% (6,093) year-on-year increase in the number of nonresident visitors. Fastest growing markets by volume compared to 2Q 2013: Country 1. Germany 2. China 3. Other European Countries* 4. Poland 5. Austria 6. Republic of Korea 7. Israel Growth Growth (%) 17,012 7,957 5,387 9.2 26.9 21.9 4,564 3,941 9.3 13.0 15.4 3,783 3,649 17.4 *Note: “Other European Countries” includes European countries that are not individually monitored by the Czech Statistical Office. The greatest declines in guest numbers can be seen for Russia, Ukraine and France. The consequences of the Russian-Ukrainian crisis are the reason behind the numbers for Russia and Ukraine. The ongoing economic crisis in France, with the French saving money in the face of falling incomes, is reflected in the behaviour of French visitors. According to French polls by IPSOS and Coach Omnium, it is not only the middle class that has been limiting or entirely forsaking their holidays. The greatest losses in inbound guests compared to 2Q 2013 are from the following countries: Country 1. Russia 2. Ukraine 3. France 4. United Kingdom 5. Japan 6. Italy 7. Brazil Decline -23,179 -10,650 -6,469 Decline (%) -16.3 -37.6 -9.2 -4.2 -3,463 -3,184 -2,694 -2,494 -12.3 -3.4 -14.2 Top markets by total nights: Place Country Number of overnight stays 1 Russia 482,082 2 Germany 473,078 3 USA 272,074 4 Italy 212,559 5 United Kingdom 189,748 6 France 162,854 7 Spain 106,398 8 Poland 102,241 97,442 9 10 Other Asian Countries Slovakia 96,383 *Note: “Other Asian Countries” do not include China, India, Israel, Japan or South Korea, which are tracked separately by the Czech Statistical Office. Tourism in Prague compared to national trends The Czech Republic as a whole registered 4,004,961 overnight trips in 2Q 2014, up 70,184 year-on-year (+1.8%). This result was achieved due to the increased number of arrivals by non-residents; residents slightly cut down on their domestic travels. The trend for the country as a whole is somewhat more positive than for Prague (Prague: -0.9%). Overnight trips throughout the Czech Republic spent by residents was 1,800,342, down -0,1% (-2,416 person). Trips by non-residents totalled 2,204,619, up 3.4% (+72,600 trips). With 1,590,310 trips, Prague accounted for 39.7% of all overnight trips in the Czech Republic. At the regional level, nine of the Czech Republic's fourteen regions saw visitor numbers increase. Most visitors arrived in the Czech Republic from Germany, Russia and Slovakia. Total nights in accommodation establishments throughout the Czech Republic reached 10,497,082 in 2Q 2014, which is 36,704 (0.4%) more nights than in 2Q 2013. Based on data from the Czech Statistical Office published on 7 August 2014