| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$119.75 |
14 |
|
Percentage of total item cost: |
10.20% |
12 |
|
Overall tax index: |
91 |
6 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Prague. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Prague compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Prague currently has an
overall Tax Barometer index of 91,
indicating a
9% decrease in
travel-related taxes since June 15, 1994.
This change can be attributed to a
significant decrease in the restaurant sector, which helped offset
increases in the car rental and air passenger sectors. Taxes on
hotel accommodations have remained steady over this period.
Prague is one of only eight destinations to have lowered its overall tax
index since 1994. For a five-day, four-night trip to
Prague, travelers
can expect to pay approximately $120.00 in tourism-related taxes, a
total that ranks as the 14th lowest among all
surveyed destinations, and the second lowest among
the 18 surveyed European destinations.
|
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$231.40 |
- |
|
Airport access fee: |
15.00% |
|
|
Value added tax (VAT): |
5.00% |
- |
|
Registration fee (per day): |
CZK 103.00 |
- |
|
Total charges for 4-day rental with taxes: |
$291.85 |
- |
|
Total tax $ for 4-day rental: |
$60.45 |
39 |
|
Percentage of total car rental cost: |
20.71% |
30 |
|
Car rental tax index: |
154 |
38 |
|
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
Car rental taxes have increased 54% in Prague since 1994, the
result of an increase to the airport access fee (from 12.0% in the
base index to 15.0% in 2002) and the introduction of a new registration fee. The
registration fee was introduced in 2000 at a rate of CZK 72.00 per day
and was increased to CZK 103.00 per day in 2001. Prague's index of 154
ranks as the 15th highest among the 52 surveyed destinations, and the
fifth highest among the 18 surveyed destinations in Europe.
Travelers can expect to pay about $60.00 in taxes for a four-day
mid-sized car rental, a total that ranks as the 14th highest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$607.99 |
- |
|
Value added tax (VAT): |
5.00% |
- |
|
Local accommodations tax (per night): |
CZK 15.00 |
- |
| Total
charges for 4-nights lodging with taxes: |
$640.45 |
- |
|
Total tax $ for four-nights: |
$32.46 |
11 |
|
Percentage of total hotel room cost: |
5.07% |
9 |
|
Hotel
tax index: |
100 |
8 |
Summary: Taxes on hotel rooms in
Prague remain at their 1994 base index levels. For a
four-night visit, travelers can expect to pay around $32.00 in taxes,
a total that ranks as the 11th lowest among all 52 surveyed
destinations, and the third lowest among the 18 surveyed European destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$230.39 |
- |
|
Value added tax (VAT): |
5.00% |
- |
|
Total charges for 12 meals with taxes: |
$241.91 |
- |
|
Total tax $ for 12 meals: |
$11.52 |
8 |
|
Percentage of total restaurant meals cost: |
4.76% |
5 |
|
Restaurant tax index: |
23 |
1 |
Summary: Restaurant meal taxes have decreased more in Prague
than in any other surveyed destination. The 77% drop in taxes
collected on 12 meals can be attributed to a decrease in the
restaurant VAT rate, which was lowered from 22.0% to 5.0% in 2000. Visitors
can expect to pay around $12.00 in taxes for 12 restaurant meals, a
total that ranks as the eighth lowest among all 52 surveyed
destinations and the lowest among the 18 surveyed destinations
in Europe. |
 |
Rank |
|
Embarkation tax: |
CZK 468.00 |
- |
|
Total tax $ for international arrival and departure: |
$15.32 |
23 |
|
Percentage of total trip cost: |
1.30% |
22 |
|
Air passenger tax index: |
170 |
27 |
Summary:
Taxes on international air passengers have increased 70% in Prague
since 1994, the result of three increases to the embarkation tax. The most recent increase occurred
in 1999, when it was raised from CZK 397.00 to its current level of
CZK 468.00. Prague's index of 170 ranks as the 26th highest among
all 52 surveyed destinations, and the ninth highest among the 18
European destinations. The $12.44 in applicable taxes also ranks
as the 32nd highest among all destinations, and the sixth highest among
the 18 surveyed destinations in Europe. |
 |
|
Barometer No. 5:
The embarkation tax
was increased from CZK 311.00 to CZK 346.00, affecting airline
passengers.
Barometer No. 7:
The embarkation tax was increased from CZK 346.00 to CZK 397.00.
Barometer No. 8:
The embarkation tax was increased from CZK 397.00 to CZK 468.00.
Barometer No. 9:
A CZK 72.00 per day registration fee was introduced, affecting car
rental rates. In addition, the VAT rate on
restaurant meals was lowered to 5.0%.
Barometer No. 10:
The airport access fee on car rentals was increased to 13.0%, and the
registration fee was increased to CZK 103.00 per day.
Barometer No.
11:
The airport access fee on car rentals was increased from 13.0% to
15.0%. |
|
