FEATURE-No longer cheap, Prague joins Europe in prices

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PRAGUE, Aug 12 (Reuters) - When Britons Jean Mallock and Kathryn Newbould planned their trip to Prague, friends regaled them with tales of great beer and food way below prices at home.

On arrival, they were stunned by how much they spent at pubs and restaurants.

"We were really surprised," said Mallock, a 23-year-old project manager from Nottingham, as she sipped a drink in the historic Old Town. "Especially in the centre, prices are really the same as in Britain ... food and spirits particularly."

Higher prices are due to inflation and appreciation in the crown currency which has lifted what was once a low-cost jewel for tourists to nearer the price levels of Rome or Barcelona.

The crown has gained 41 percent against the dollar, 36 percent against the pound and 25 percent against the euro since the Czech Republic joined the European Union in 2004.

Those gains have been a boon to Czechs looking to buy foreign goods such as cars and electronics. But the exporters who are crucial to the country's economic growth are suffering, as are hotels and restaurants which depend on foreign visitors.

Inflation is rising and reached 6.9 percent in July, and the higher prices have affected robust growth in tourism.

Following an explosion in construction that has created more rooms than visitors can fill, some hotels have slashed prices to stay afloat, a process that could benefit tourists short term, but may spell doom for some operators.

"I think some hotels may go bankrupt," said Pavel Hlinka, President of the Association of Hotels and Restaurants in the Czech Republic.

Prague gets four million tourists a year, roughly the same as Vienna. But it has about 75,000 hotel beds, 50 percent more than in the Austrian capital.

CROWN ON THE MARCH

The crown has been one of the world's best performing currencies, thanks to economic growth of around 5 percent a year over the last decade and investors' belief that Czech salaries and prices will continue to catch up with those in richer neighbouring countries.

Over the last 12 months, it has outperformed regional peers such as the Polish zloty and Hungarian forint, which have also risen significantly. The rise prompted the Czech central bank to knock the crown back by cutting interest rates last week, which makes it less attractive to speculative investors.

The crown fell to a six-week low last week, but is still up almost 12 percent against the dollar and 9 percent versus the euro this year, hitting tourists in the wallet.

Dinner for two at mid-range restaurant Ambiente, including three courses and a bottle of wine, now costs about 2,100 Czech crowns, or $135. Cocktails cost around 120 crowns, or $8.

That's a significant jump from what many previous visitors may recall of the charming ex-communist city in around 2001, when the same dinner bill would have been only $50.

The Czechs' most famous product, beer, now costs around $2 a pint at a regular Czech pub. That's still cheap by Western standards but well above the roughly 25 U.S. cents it cost when the dollar, pound and euro were at their strongest.

Although designed for expatriates rather than tourists, the Mercer's Worldwide Cost of Living survey from March shows Prague jumped to 29th place from 49th in terms of prices, ahead of Barcelona, Brussels, Berlin and other major western cities.

State agency CzechTourism still expects visitor numbers to rise by up to 4 percent this year, an uptick from around 2.3 percent a year ago.

The difference is that more visitors now come from countries such as Russia, Ukraine and Kazakhstan, rather than for western Europe where Prague is no longer seen as cheap. "It is possible that there will be a (downward) fluctuation," said CzechTourism spokeswoman Marketa Chaloupkova.

SERVICE LAGS

Many local firms are now desperately calling for a fast adoption of the euro -- like in neighbouring Slovakia, which will join the euro zone on Jan. 1 -- and putting an end to the crown's appreciation against the common European currency.

The Czech government has not set a target for euro zone entry. It wants living standard of living, some 72 percent of the EU average, to rise more gradually.

Many analysts say euro zone entry could happen only in 2014 or later, giving the crown years more to firm.

That may not be good news for tourism firms. But according to Tomio Okamura, spokesman for the Czech Association of Tour Operators and Travel Agencies, a more important issue is raising the quality of services that has not caught up with prices.

"Because of the crown we have to become a luxury destination, but our level of services is not keeping up," Okamura said.

British tourist Mark Rose agrees. He did not think he was getting the right value for how much he pays in Prague, but said this wouldn't spoil his holiday. "I would recommend here but I would warn people that it's quite expensive," he said.

Well, I guess it was all a matter of time for this to happen...too bad.

On the other side, I'm happy because I went to Prague in 2003 and stayed 10 days with my girlfriend in a huge penthouse located at the very downtown paying as little as €30 per night.

prague has most expensive trips in turkey.

Makes sense, the Crown is one of the most strongest currencies in the world.

$135 for 2-pax dinner thats very costly . For Asian tourists, who are food-maniac , that really burns their pocket. In comparison- a huge buffet dinner in Thailand may cost just around $ 10 for 2 persons.

I think that tourists from developing countries in Asia who are visiting Eastern European countries like Czech Republic can still afford transportation and accommodation there- but since Asians are foodies and eating out always , food must be the No. 1 issue there.

Not as expensive as France, Germany or even neighboring Austria... just beware the pickpockets.

$135 for 2-pax dinner thats very costly . For Asian tourists, who are food-maniac , that really burns their pocket. In comparison- a huge buffet dinner in Thailand may cost just around $ 10 for 2 persons.


Year, but there is probably a big difference in average wages between Thailand and Prague. The big cost in that $135 is for a good bottle of wine. Of cause, you can always get nice house wine which is cheap, but I would imagine that they were talking about a €20 - €30 bottle of wine there.

Not as expensive as France, Germany or even neighboring Austria... just beware the pickpockets.

No, I won't agree with that. I would pay the same here in Frankfurt for a good quality medium restaurant, often less. And about the same in France as well outside of Paris. A couple of weeks ago I was in a Michelin star restaurant in Brittany and the 5 course meal with wine, aperitif etc came out to about €125 for two. This was also above average and I thought it was quite good value to be honest. The average meal for two would be around €100 or less when including a good bottle of red.

You can also go to a normal restaurant and get set menu's that have three courses for say €20-€25 each before drinks are added. A standard restaurant in Frankfurt would have a maincourse between €8-€18, so you can easily have a mains & desert plus drink for under €20 each.

End of an era:ohno:, i remember the tasty beers and rock bottom proces 10-12 years ago :cheers:

Year, but there is probably a big difference in average wages between Thailand and Prague. .

Well.. but from a tourist point of view.. with the same dollar .. you get more in one compared to another.

Well.. but from a tourist point of view.. with the same dollar .. you get more in one compared to another.

This is true, but then depending on where you live it may also cost a lot more to travel there. Flights or trains to Prague from where I live are a fraction of the cost to Thailand, so any savings made on food are pretty quickly lost. Also, that $10 you quoted in Thailand is most likely for a different class restaurant than the one mentioned in the article. As I said, I can eat in Frankfurt for €8 for a main course in a very nice restaurant, so I would imagine the one they are mentioning is in a different class.

^^ Yes, but it will be much more "painful" for Asians travelling into Czech as compared to Europeans travelling into Thailand- when we consider the cost.

$10 is not for a normal 2 or 3-course dinner, but its what you pay for Buffet ( unlimited food ) for 2 persons ( not one ) , in a Middle-range air-conditioned restaurant in Bangkok.

I thought Prague was rather cheap for Europe. 10 euros can get a very nice meal in the town centre, although further out it's perhaps half that or even 1/3.

^^ Yes, but it will be much more "painful" for Asians travelling into Czech as compared to Europeans travelling into Thailand- when we consider the cost.

$10 is not for a normal 2 or 3-course dinner, but its what you pay for Buffet ( unlimited food ) for 2 persons ( not one ) , in a Middle-range air-conditioned restaurant in Bangkok.

Ok, we have a major difference of definition here. A Buffet restaurant is not anywhere near in the same class as the restaurants that article was talking about. Buffet restaurants, air conditioned or not, are considered budget places. There is a massive difference between quality food cooked to order and waiter service to "a serve yourself" to mass pre-cooked food sitting under a sneeze barrier for a length of time.

Such buffet restaurants can cost from €10 a meal here as well. Ok, that is per person, but hey, we're a rich developed nation so obviously the cost will go up. But buffet's are not that popular here as most people prefer waiter service and a slow, long evening at a restaurant. Most of the buffet's, what few there are, are in Asian restaurants (actually, mostly Thai restaurants) and not the high quality ones. I don't mind them personally, great for lunch I guess, but in the evening I like to make an evening out of a meal when going out and a normal restaurant is more my cup of tea.

But year, you can't compare a buffet restaurant with a proper cooked to order one with waiter service.

^^ Yeah, I agree. Buffet = good for lunch, bad for dinner. :cool:

I went to Prague and well, it was not as cheap as I expected, but it wasn't really expensive. It was okay. Expensive are places like Paris, London, Helsinki or Copenhagen!

Good that I have been already in Prague in 2005. Back then the price for a half-litre of beer in a pub in the centre was about 1 €, in a pub in the suburbs about 70 cents. That was roughly just 1/4 of the price you would pay in a pub in Hamburg. Also food was really cheap: I ate a traditional bohemian meal (one course) in a czech restaurant in the centre and paid just about 3€ incl. drink. That was about 1/4 to 1/10 of a comparable meal in Hamburg.

^^ Yeah, I agree. Buffet = good for lunch, bad for dinner. :cool:

I went to Prague and well, it was not as cheap as I expected, but it wasn't really expensive. It was okay. Expensive are places like Paris, London, Helsinki or Copenhagen!

exactly :) more expensive but still not that expensive compare to austria and germany as neighbours. maybe it is good idea to walk down a little from main tourist routes and find really decent spot with "friendly" prices. btw i believe we have still the cheapest beer on planet (and i really like it this way) :cheers:

^^ Cheaper than beer in Thailand or somewhere like that?

The trend have turned downwards, 1USD is 16,6 CZK today.

Server releases list of "tourist traps" in Prague - press

Prague, July 2 (CTK) - A list of tourist traps in Prague, including famous restaurants and the major "artery" in the historical centre, has been released on the Prague-Stay.com English-language server, the daily Lidove noviny (LN) reports in its Prague supplement today.

The server writes that low-quality and overpriced tourist attractions and services, such as the Museum Mysteria Pragensis of ghosts and legends and the Wax Museum, spoil the reputation of UNESCO-listed Prague as their only apparent aim is to draw as much money from tourists' pockets as possible.

A couple of weeks ago the server made a list of "top nine" tourist traps in Prague centre. It is topped by Prague taxi drivers against whom every tourist guidebook warns since they often cheat on tourists, LN says.

Expert in tourism Tomio Okamura told the server that the notoriously dishonest taxi drivers at Old-Town Square, who charge almost 100 crowns per kilometre while the regular price is maximally 28 crowns, recently invented a new trick. They label their cars with AAA signs similar to the recommended responsible taxi company in Prague.

The server also warns against the U Fleku traditional beer hall with a brewery, making its own dark beer for centuries, as its quests receive only mediocre food and overcharged beer in a rather "artificial" atmosphere for their money, LN writes.

The server also challenges some clearly commercial museums that were mushrooming in the Prague centre to lure tourists and whose quality is dubious.

It mentions the Wax Museum where a doll featuring Prague-born Jewish writer Franz Kafka, who is smiling "God knows why," stands next to first Czechoslovak Communist president Klement Gottvald, and popular Czech pop singer Karel Gott is placed next to Soviet leader Joseph Stalin .

A couple of metres from the Old Town Hall with the astronomical clock, one of the most beautiful sights in Prague, there is another bizarre facility - the Sex Machines Museum with an unbelievably high entry fee of 250 crowns, LN writes.

The server also criticises the Royal Route, the way the coronation processions of the Czech kings used to follow in the past from the Old Town up to the cathedral at Prague Castle, which is now the most frequented popular tourist route. Nevertheless the medieval streets are full of shops with trashy and embarrassing souvenirs some of which have nothing to do with Prague, such as Russian dolls.

Server provider Prokop Svoboda told LN that they would gradually extend the list of "traps" on the basis of tips from tourists that their freelance aide, a young American woman living in Prague, would check.

Svoboda added that Britons and Americans are probably the most critical with regard to the high number of their visits to the server.

However, in spite of the above mentioned shortcomings, the server admits that Prague is still a romantic city with lovely old houses and narrow cobbled streets, LN writes.

($1=18.295 crowns)

There are no taxi's on the Old Town Sq today - they were kicked off, because they weren't there legally. The quality of taxis in Prague improved rapidly over past years, there were some controls last week with very positive result. But of course, some taxi companies, with their cars standing usually on the places which were not chosen as taxi stands by the magistrate, can be dangerous.. :-)

Oh no :ohno: please keep Prague cheapp!!! :lol:

^^
Actually, it wasn't cheap 6 years ago either. When I was in CZ with my school, Prague (at least the centre where all the tourists are) was on the same level as Germany. Outside of the capital, CZ was very cheap and still is.

I was there last month..very nice city and indeed it is quite expensive. The country side is quite amazing. If u have time, rent a car and drive to other small town. worth a visit;-).

I was in Prague six months ago. Yes, the place in not cheap.
But, come on, this is one of the most impressive cities in Europe! What do you expect? Two of each for a euro?

^^
Actually, it wasn't cheap 6 years ago either. When I was in CZ with my school, Prague (at least the centre where all the tourists are) was on the same level as Germany. Outside of the capital, CZ was very cheap and still is.


Well actually I found Germany very cheap :lol:...and Prague even cheaper and the last time I was there was the last year.....

Indeed found some german cities a bit expensive like Munchen and other southern cities

But maybe the reason I didnt find them too expensive was the fact that I went to Germany and Czeck Rep after been in Scandinavia where the prices are totally nuts.........

I was in Prague six months ago. Yes, the place in not cheap.
But, come on, this is one of the most impressive cities in Europe! What do you expect? Two of each for a euro?

^^ Agree...one of the most impressive cities in Europe...........

I've been to Prague two weeks ago. My observation in comparison to my previous stay 2005:

- a half-litre of beer in a pub: 18-35 crowns (1-2 Euro). Over 35 crowns in tourist rip-off places. It is almost double the price than 4 years ago, but still cheaper than the average price in major german cities (except maybe Berlin).
- Cocktail in a bar: about 100 crowns (about 3,80 Euro). Still much cheaper than in major german cities (except Berlin).
- a meal in a pub-like restaurant: about 5 Euros. Still cheaper than in comparable restaurants in major german cities
- 24h-transport-ticket: 100 crowns (about 3,80 Euro). Still much cheaper than in major german cities.

If you need a flat in Prague, it can get expensive. Foreigners are being ripped off there. I stayed at a croatian friend living in Prague and she pays 500 Euro for a 1-room flat with ca. 35 qm in a rather central, but not touristy district!

for a great city like prague it should be expensive.