2013-09-16 08:54:35 - New Consumer Goods market report from Business Monitor International: "Czech Republic Tourism Report Q4 2013"
The Czech Republic Tourism industry is still affected by the ongoing economic uncertainty in Europe, its largest source market. However, we highlight that despite the Czech Republic's worse than expected economic results in Q113, the country is poised for a modest turnaround this year as leading indicators signal that the worst may be now over. This willboost domestic tourism and increase domestic tourism expenditure. Moreover, there is still a great deal of investment potential for large tourist industries, particularly as rising incomes across Russia and the wider CEE region benefit the Czech Republic's tourism sector over the medium term.
An overview of the Czech Republic's Top 10 inbound tourism markets highlights the fact that Europe is the Czech Republic's main source
of tourism. Nine out of the top 10 markets are European, with six from Western Europe (Germany, Italy, the UK, France, Spain and The Netherlands) and three from Central and Eastern Europe (Russia, Poland and Slovakia). This reflects the Czech Republic's central location within Europe, with good air links and other transport links to both east and west.
Full Report Details at
- www.fastmr.com/prod/673227_czech_republic_tourism_report_q4_2013 ..
However, due to the fact that a more pronounced slowdown in eurozone economic growth, and in particular in Germany, would have a negative effect on the Czech Republic's economic growth trajectory, we have reduced our forecast for German arrivals slightly over 2013.
Much of the CEE region is currently booming and various tourist industries, particularly the large global hotel chains, are looking towards the CEE region now as they see it as a potentially lucrative market. A large part of this growth will be seen in intra-CEE tourism; the Czech Republic's tourism arrivals reflect this. Higher disposable incomes from within the former states of the Soviet Union should also lead to increased outbound tourism demand from there to countries such as the Czech Republic over the medium term, As such, we have maintained our inbound country arrival forecasts for the CEE countries.
Although there is currently little new investment in the airports infrastructure in the country, there have been a number of large projects in the rail and road sectors, reflecting the country's central location and the fact that a major portion of its tourists arrive via land rather than by air. These include:
* The Czech Railway Infrastructure Administration (SZDC) is planning to start the construction of a highspeed rail link between Kladno and Prague Vaclav Havel Airport in 2013 or 2014.
* A number of upgrades and expansions to the Prague metro lines.
* The repair and expansion of various bridges into Prague.
Key Forecasts Include:
* BMI believes that the number of hotels and other accommodation establishments in the Czech Republic will continue to increase across our forecast period to 2017. The CEE region is currently perceived as offering extremely attractive investment opportunities for hotel groups and other tourist-related industries - largely due to rising domestic tourism as well as regional tourism, supported by an increase in higher disposable incomes.
* The local franchisee for US-based multinational chain Choice Hotels International, CPI Hotels, is to open the refurbished 126-room Clarion Congress Hotel Olomouc (formerly Hotel Sigma Olomouc) plus another new conference centre for its Clarion Congress Hotel Ostrava in 2013.
* Outbound air traffic has increased over recent years. However, owing to continued economic uncertainty, and the poor showing in Q113 for the overall economy, we have reduced our outbound departures forecast by 60,000 for 2013, to 6.7mn.
* International tourism receipt forecasts have been increased, to over US$10bn, reflecting the wider economic improvement seen in many of the country's main source markets, and an increase in the forecast 2013 arrivals from a number of countries, including the USA.
* The Czech Republic has dropped three places in BMI's Risk/Reward Ratings for the CEE tourism industry this quarter. Taking all of the risks and rewards together, the Czech Republic obtains an overall Rating of 55.03 this quarter, putting it in seventh position for the CEE region, between Estonia and Cyprus.
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