XXI. MEZINÁRODNÍ KOLOKVIUM O REGIONÁLNÍCH VĚDÁCH. SBORNÍK
PŘÍSPĚVKŮ.
21ST
INTERNATIONAL COLLOQUIUM ON REGIONAL SCIENCES.
CONFERENCE PROCEEDINGS.
Place: Kurdějov (Czech Republic)
June 13-15, 2018
Publisher: Masarykova univerzita, Brno
Edited by:
Viktorie KLÍMOVÁ
Vladimír ŽÍTEK
(Masarykova univerzita / Masaryk University, Czech Republic)
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o regionálních vědách. Sborník příspěvků. Brno: Masarykova univerzita, 2018. s. 1–5.
ISBN 978-80-210-8969-3.
AUTHOR, A. Title of paper. In Klímová, V., Žítek, V. (eds.) 21st
International Colloquium
on Regional Sciences. Conference Proceedings. Brno: Masarykova univerzita, 2018. pp. 1–
5. ISBN 978-80-210-8969-3.
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ISBN 978-80-210-8969-3
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DOI: 10.5817/CZ.MUNI.P210-8970-2018-65
ECONOMIC TRANSITION AND TOURISM DEVELOPMENT
– MASS TOURISM IN PRAGUE
Ekonomická transformace a rozvoj cestovního ruchu – masový cestovní
ruch v Praze
ANDREA HOLEŠINSKÁ
MARTIN ŠAUER
Katedra regionální ekonomie a správy
Institut cestovního ruchu
Ekonomicko-správní fakulta
Masarykova univerzita
Depart. of Regional Economics and Administration
Institute of Tourism
Faculty of Economics and Administration
Masaryk University
 Lipová 41a, 602 00 Brno, Czech Republic
E-mail: holesinska@econ.muni.cz, sauer@econ.muni.cz
Annotation
Prague, a metropolitan city, with the privilage in its historical and cultural heritage (since 1992 on the UNESCO
heritage list) has the predominant position in inbound tourism in the Czech Republic. Thus tourism is an important
part of Prague’s economy and therefore tourism impacts are reflected in life of residents, and in urban planning
as well. The aim of the paper is to present how considerably the tourism development in Prague has transformed
since 1990s. Primarily, the political and economic transition in 1990s is introduced to hightlight the major
implications of the political-economic regime change in field of urban tourism. The research focuses on the
development of the nature and structure of tourism demand (tourist flows) and at the same time on the policy of
urban planning. The effects of “the urban tourism strategy” (changes in the functional-spatial structure of the
tourism supply) describe a survive covering the historical core of the city. Undoubtedly, Prague turned out as a
product of mass tourism and to cope with this situation policy-makers and responsible authorities in tourism have
to come up with a new strategy that makes Prague competitive of the future.
Key words
Prague, economic transition, touristification, urban tourism, mass tourism
Anotace
Praha jako metropolitní město s významným kulturně-historickým dědictvím (od roku 1992 je zapsána na seznamu
dědictví UNESCO) má dominantní postavení v příjezdovém cestovním ruchu v České republice. Cestovní ruch je
tak důležitou součástí ekonomiky Prahy, a tudíž i dopady cestovního ruchu se odrážejí na životech místních
obyvatel i na územním plánování města. Cílem článku je ukázat, jak se významně se změnil rozvoj cestovního
ruchu v Praze od devadesátých let minulého století. Článek nejprve prezentuje politickou a ekonomickou
transformaci v devadesátých letech a zdůrazňuje hlavní dopady politicko-ekonomických změn v kontextu
městského cestovního ruchu. Výzkum se orientuje na rozvoj struktury poptávky cestovního ruchu (tj. turistické
proudy) a současně i na politiku v oblasti územního plánování. Dopady „přijaté“ strategie rozvoje městského
cestovního ruchu (řešící změny ve funkční a prostorové struktuře nabídky cestovního ruchu) odhaluje terénní
šetření, jež se zaměřuje na historické centrum Prahy. Bez pochyby se Praha vyvíjí jako produkt masového
cestovního ruchu a je na politických představitelích a odpovědných institucích, aby se s touto skutečnosti
vypořádali a přijali novou strategii, která z Prahy do budoucna vytvoří konkurenceschopnou destinaci.
Klíčová slova
Praha, economická transformace, turistifikace, městský cestovní ruch, masový cestovní ruch
JEL classification: Z32, P31
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1. Introduction
Prague is a traditional destination for many tourists and is one of the most frequently visited European capitals.
According to the data from TourMis (2017), Prague is one of few European cities with more than 10 million
overnights per year. With its performance, Prague outperforms its nearest competitors, Budapest and Vienna. It
only falls significantly behind the world centres of business, culture and politics (e.g. Paris, London, Berlin etc.).
The importance of Prague at the international stage notably determines also its position in tourism in the Czech
Republic. It is characteristic with the powerful dominance both in tourist performance and in tourist offer. 65 %
of all foreign visitors in the Czech Republic come to Prague every year. The concentration of the spatial
distribution of visitors in Prague is also increasing with time (in the past 10 years by 16 percentage points).
Moreover, as regards the actual structure of visitors according to their geographic origin, there are almost
exclusively foreign visitors. Up to 90 % of all overnights in accommodation facilities are performed by foreign
visitors. No other locality in the Czech Republic has such a position in the international tourism like Prague (some
spa centres and UNESCO localities are getting near but only slightly).
Prague is a typical example of a metropolis in which transformation impacts can be seen. In the 1990s the Czech
Republic together with other post-communistic countries of the Central and Eastern Europe had undergone a
significant economic transition, which evidence is reflected in the tourism development in Prague. This
transformation is described in detail by Williams and Baláž (2000). The Czech Republic moved from central
planned economy to market economy through the re-internationalisation of markets. The process was based on
privatization (distribution of property rights) and liberalization (setting the market mechanism). This market
transition created the private sector, and so new accommodation and hospitality facilities were established and
private travel agencies started to work. The political situation also changed from totalitarianism to democracy.
Czech borders were opened and the passport and visa barriers were removed.
Regarding this the aim of the paper is to present how considerably Prague has transformed since 1990s. In other
words, how the economic transition influenced tourism development in Prague.
2. Theoretical background
Williams and Baláž (2000) deeply discuss the political and economic transition within the Central and Eastern
Europe in 1990s. Considering the economic transition the setting of market mechanism must be mentioned. In the
case of the Czech Republic the process of privatization was the crucial point. This step led towards the distribution
of property rights between foreign investors (developers) and Czech inhabitants. The positive aspect was that the
private sector was created, however the undesirable aspect appeared as well. The legislation had not been
sufficiently prepared yet and there were no (or very few) limits either for foreigners in terms of buying properties
or for Czech to set their business.
Thus, the economic transition influenced the development of tourism. The major implications are visible in the
field of urban tourism (Simpson, 1999; Sýkora, 1999; Rátz, Smith and Michalkó, 2008). Sýkora (1999) highlights
the devident changes in the spatial structure in Prague. The transformation of space is connected with two
processes: internationalisation and concentration. High concentration of visitors in one single locality logically
brings a risk of damage to the sources of attractiveness of the actual destination (Pásková, 2008). The destination
(as a tourism product) is being depleted, slowly but surely, and the saturation stage is in progress (Buhalis, 2000).
The process of turistification is obvious and the destination easily becomes a tourist ghetto. In this context, Prague
is a perfect example to demonstrate all these processes (Fialová and Kadlecová, 2010; Dumbrovská and Fialová,
2016; Dumbrovská, 2016).
From the political point of view, the transition involved the distribution of power and primarily changes in the
value system. The first step that dramatically influenced the development of tourism in Prague was the freedom
of movement (Williams and Baláž, 2002). The opening of the Czech borders brought changes in tourist flows.
After 1992 there was a mass increase of arrivals of foreign tourist in the Czech Republic. This rapid growth was
caused by so-called “curiosity effect and expectations (Baláž and Mitsutake, 1998) when mainly emigrants and
visitors from Western Europe were arriving in the Czech Republic. Later on the process of globalization and new
trends in tourism elicited further changes. The results of these changes are the object of the paper.
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3. Methodology
To present the implications of economic transition to the development of tourism in Prague the analysis of statistic
data and primary research were applied.
The interpretation of the process of internationalisation and concentration in Prague was based on the analysis of
statistic date form the Czech Statistic Office. The data about arrivals and overnights (inbound tourism), and bed
capacities in collective accommodation establishments were examined.
For the purpose of demonstrating the turistification process in Prague, the primary research was focused on
identification of utility functions offered by the historic centre of Prague. It is supposed to prove to what degree
the centre of Prague has been touristified (i.e. influenced by tourism). The research was based on the methodology
by Fialová and Kadlecová (2010). However, it did not focus only on recording of types of objects according to the
services offered but it tried to reflect their function and mainly their importance for tourism. Also the quality of
the offered goods (mainly souvenirs) was assessed.
On the basis of a preliminary research, it was chosen the most touristic part of Prague which copies the King’s
way (Prašná Gate, Celetná Street, Old Town Square, Karlova street, Křižovnické Square, Charles Bridge,
Mostecká street, Malostranské Square, Nerudova Street and Prague Castle). The research was carried out in the
summer season 2010. It included the total of 446 units (buildings/premises).
Fig. 1: Map of King’s way – the case study
Source: authors
4. Results
4.1 Prague and transition
The economic transition influenced the development of tourism in Prague. Firstly, there were dramatic changes in
the spatial structure (Sýkora, 1999). The transformation of space in Prague was connected with two processes
internationalisation and concentration. The former process considered foreign capital investments that allowed
foreign developers to buy properties in the historical centre of Prague and use them for commercial purposes. The
latter process led to the allocation of new accommodation facilities in the historical core of Prague (Malá Strana,
Old Town Square, Jewish Quarter and Wenceslas Square). Nowadays 26 % of all beds in Prague are situated in
the historical centre (Fig. 2). Moreover, the historical centre of Prague shows the dynamic growth of both bed
capacity and overnights by comparison with the rest of Prague’s districts.
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Fig. 2: The concentration of beds and overnights in Prague
Source: Czech Statistic Office (2009), authors processng
The following figure (Fig. 3) presents the detail concentration of hotel beds located in the centre of Prague. Hotels
situated right in the historical centre have low bed capacity because of the limits in historical buildings. On the
other hands, the high-quality (5 and 4-stars) hotels with large bed capacity are located in the neighbourhood.
Fig. 3: Concentration of hotel beds in the centre of Prague
Source: Czech Statistic Office, 2009
After 1992, with opening of the borders and with the economic and political stabilisation, there was a mass increase
of arrivals of foreign tourists. This dramatic increase was caused by so-called “curiosity effect and expectations”
(Baláž and Mitsutake, 1998) when mainly emigrants and visitors from Western Europe were arriving in the Czech
Republic. This trend continued until 2002. It is a turning point due to two reasons which show how tourism is
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sensitive to external influence. First of all, in 2002 Prague was hit by floods and it was reflected in a dramatic drop
of arrivals and therefore also overnights. Another factor which influenced the change of the demand trend is
connected with the terrorist attack in New York, or with its impacts on aviation which was transformed and low
cost flights appeared in the market. A new wave of visitors from Western Europe who considered Prague to be a
“cheap” destination arrived in Prague. The number of arrivals and also overnights was increasing but it could have
been described as weekend stays. This situation continued until 2007, when another change in tourist flows
happened due to the global economic situation which also had an impact on tourism demand (geographic structure
of visitors). Generally, the source countries from the Central and Eastern Europe strengthen at the expense of
Western European countries. In absolute figures, Western Europe does not show decrease of visitor numbers but
the growth dynamics is low (it is about 0.75 % a year). On the contrary, countries such as Russia, Poland and
Ukraine are taking a more and more significant position in the structure of source countries.
4.2 Prague touristification
The research focused on identification of the degree of impact of the massive (uncontrolled) development of
tourism in the capital city of Prague was based on an analysis of the offer in the touristy historic centre of Prague.
On the basis of a field research, a typology of the services and goods offered along the King’s way was prepared.
A general outline is given in Table 1. The biggest category includes shops selling goods which intentionally do
not include souvenir shops. This group comprises of e.g., goldsmith’s, toy shops, glass/china shops, antique shops,
second hand bookshops or bookshops. A type unified group with the biggest representation is catering facilities
and souvenir shops.
Tab. 1: Typology of researched items
Type of item Number
Administrative buildings 24
Banking facilities 13
Theatres 10
Museums/galleries 10
Cultural-historical sights 35
Shops providing goods (excluding souvenir shops) 91
Souvenir shops 62
Accommodation facilities 40
Catering facilities 89
Exchange offices 18
Tourist information centres 7
Other shops providing service 10
Public toilets 2
Public space 11
Residential buildings 17
Others 7
Total 446
Source: authors research
For the purposes of proving the change of function of using the historic centre “in favour” of tourism, see
commercialisation in tourism (Pásková, 2008; Sýkora, 1999; Mason, 2003), each unit was allocated one of the
functions (Table 2). The result shows a clear decline of the residential function at the expense of the business
(commercial) function. A higher representation of the cultural-historic function is obvious with regard to the big
concentration of important cultural and historic sites recorded in the UNESCO World Heritage Sites list.
Tab. 2: Functions of land use
Function Number Percentage
Residential 30 6.7
Official 32 7.2
Retail 329 73.8
Cultural-historical 55 12.3
Total 446 100.0
Source: authors research
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The following table (Table 3) shows the degree in which this commercialisation of the historic centre is caused by
tourism. Every registered unit was assessed according to its meaning, i.e. whether it is used primarily by residents
(1) or only visitors (3) or whether it is equally important for both groups (2).
Tab. 3: Significance of retail function units
Retail function Number Persentage
Services for residents (1) 26 7.9
Services for both (2) 39 11.9
Services for tourists (3) 264 80.2
Source: authors research
The table shows that the services and goods offered on the King’s way are mostly intended for visitors (3). As a
result of this change, the historic centre of Prague is becoming so-called tourist ghetto where negative attitudes of
the local (Czech) inhabitants towards foreign visitors are starting to be shown. Excessive commercialisation of
Prague in favour of visitors is causing an irrecoverable loss of authenticity which is reflected in the offer of goods
that are not Czech produce and often do not have anything in common with the Czech Republic at all. Prevailingly
they are kitsch. Slowly but surely, Prague is losing its Genius loci, and it is consider as a product of mass tourism.
Conclusion
From the international tourism point of view, Prague is the essential target destination for the Czech Republic.
Basically, Prague is well established in the international tourism market and most foreign visitors aim there.
However, high concentration of visitors in one single locality logically brings a risk of damage to the sources of
attractiveness of the actual destination (Pásková, 2008). As regards Prague, the results show that some negative
processes have already started to be performed. The research revealed that there are noticeable changes of the
functional use of the historical centre of Prague. Thus the process of turistification has developed and Prague is
considered as a tourist ghetto. Alarming is that Prague little by little has been losing its authenticity. To sum it up,
all this is the manifestation of mass tourism.
Prague as a tourism product is being depleted, slowly but surely. Even though the absolute number of visitors has
not suggested the risk of the negative development yet, a closer look at the structure of number of visitors give a
warning. The interest in Prague in the traditional source markets (Great Britain, Germany, France, Italy, Spain and
the USA) slowly declines and it is replaced with new markets from the Eastern Europe. Together with the low
degree of repeated visits, it is an indicator of maturity or obsolescence of the actual product. There are not many
reasons for foreign visitors why to visit Prague repeatedly.
Prague is at the edge of sustainability. Considering the life cycle of destination (Buhalis, 2000), Prague reached
the saturation and it is a task of the local government or destination management organization to implement the
necessary steps for applying the conceptual strategy that makes Prague competitive in the market, see Rátz, Smith
and Michalkó (2008).
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This article was supported by the project Specific University Research at Masaryk University in Brno, Faculty
of Economics and Administration, no. MUNI/A/0749/2012.