Covid has had and likely will have a devastating short-term impact on the Czech tourism industry. The tourist sector depends on foreign guests for a large share of its income. This is particularly true of Prague. The domestic tourism market should revive this summer, although decreased family incomes– or fears of decreased incomes– may result in less spending and shorter stays through the winter ski season.
Ministry of Labor and Social Affairs: Educational Institute for Responsible Public Procurement to open in September
The Institute of Responsible Public Procurement brings a comprehensive educational system to public procurement specialists who want to acquire comprehensive knowledge in the field. From September, a series of seminars will be launched, after which participants will receive a certificate and at the same time will have the opportunity to sign up for other specialized courses. Contracting authorities can thus use the Institute to develop the competencies of their customers, internal customers from specialist departments and other strategic purchasing specialists.
The Czech Office for the Protection of Competition imposed fines for illegal cartel agreement linked to rail freight transport
On 22 June 2020 the Czech Office for the Protection of Competition (Office) published a press release (without publishing the full decision yet) regarding fines imposed for concluding and executing a prohibited cartel agreement regarding train projects Carpathia, Sylvania, and New Carpathia.
Prague Airport Survey: Three Quarters of Czechs Using Air Transport Wish to Travel Abroad Within Two Months at the Latest
If it was possible, 78% of Czechs who have travelled by air at least once in the last two years would like to travel to their favourite foreign destination within two months at the latest, based on the findings of a survey conducted for Prague Airport by the Median agency. At the beginning of June, the survey was conducted on a representative sample of 1,549 respondents over the age of eighteen who had travelled abroad by air at least once in the last 24 months. The survey also showed that 71% of respondents will use air transport to travel abroad as often as or even more than before the current crisis caused by the spread of COVID-19.
In June, consumer prices increased 0.6% mom and 3.3% yoy. Czech inflation thus accelerated significantly. This was due to higher prices of alcoholic beverages and tobacco, where the delayed effect of higher excise tax on cigarettes continued. However, core inflation also increased significantly, rising to 3.5% yoy from the previous 3.3%. According to the CNB, this value represents the inflationary risk of its current forecast. In our opinion, however, current high inflation is only a temporary matter and we expect it to decrease in the second half of this year.
Strategic Directions for Czech Economic Policy
- 1) Transition to High-Tech Manufacturing
- 2) The City Campus as Idea Factory
- 3) Government Programs That Drive Innovation
- 4) Government as a Competitive Advantage
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.