Competitiveness

This section feature research, opinion and progress reports on how the Czech Republic compares to other EU countries economically. It includes analysis of international rankings such as the WEF and World Bank.

Spotlight issue

27th March 2020 / Competitiveness / Trade and Investment


Outlook uncertain for hotel investment in CEE despite unprecedented boom in 2019

In the last five years (2015-2019) CEE has experienced EUR 4.2 billion worth of transactions – nearly half of the total hotel transaction volume (EUR 9.4 billion) achieved by the region in the last 20 years. Capital cities remained magnets for investment, experiencing 72% of transactions in CEE between 2015-2019. CEE hotel sector peaked in 2019, experiencing unprecedented investment levels of EUR 1.4 billion. Total of 55 hotels changed hands last year, comprising over 10,000 rooms.  The average deal size in 2019 was EUR 31 million and average price per room at about EUR 142,000.  The region has been experiencing growing diversity of investors in recent years, although in 2019, European investors secured 84% of the total transacted volume. Czech Republic remained region’s hotspot, securing EUR 620.4m of investment in 2019 and capturing 43% share of CEE6* market – however investment scenes in Bulgaria and Romania recorded a robust increase, with markets seeing 490% and 212% YOY growth respectively. The most popular hotels among investors in 2019 were upper-midscale and upscale hotels, accounting for 42% of transacted volume. In 2019, the largest transaction in the CEE region was the purchase of the InterContinental Prague for EUR 225m. Nearly EUR 2 billion of transactions where initially expected in 2020, underpinned by several major deals already in progress across the CEE-6 region. However, the completion of these deals is becoming more unlikely due to the growing COVID-19 pandemic. 
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26th March 2020 / Competitiveness / Tax & Finance


Liberal Aid Package No. 2 ENG version

Grant Thornton would like to inform you that the Government of the Czech Republic approved the bill of the Ministry of Finance this week to adopt further tax measures in connection with the extraordinary event caused by the spread of the coronavirus (so-called Liberal Aid Package No. 2). We briefly present the individual proposed measures in the following summary: 
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26th March 2020 / Competitiveness / Tax & Finance


The government has approved a second Tax Liberation Package

In view of the current situation, the Ministry of Finance has extended the Tax Liberation Package with further measures. It waives the obligation to pay advance payments for PIT and CIT due in June 2020. With regard to income tax, it also introduces the "loss carryback" measure for 2020, whereby it will be possible to apply the tax loss for the current year retrospectively in the tax returns for 2019 and 2018. 
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Members of the American Chamber of Commerce in the Czech Republic