Losing the advantage

Hotel operators were excited when the CzechTourism promotional agency got a E1m budget to support the CR abroad. Now, though, hotel operators are talking about the third natural disaster to hit them in a row. First Sept. 11, then the floods, and now VAT. It's strange, they say, that the VAT hike from 5% to 19% on lodging and meals is coming just as the government is launching "Visit the CR" ads on CNN and other European TV channels. There seems to be a lack of conceptual thinking. Many people are wondering what the CR's competitive advantage will be when the Špidla government gets finished. The CR will still of course have its natural beauty, its crown jewel (Prague), and its proximity to the major markets of Europe, but even these things can be priced out of the market. There's growing doubt about whether anyone on top is aware of this risk. stations television