The pinch that stole Christmas

The annual Prague Christmas markets are as bright and bustling as ever this year, with the usual marionettes and mulled wine in abundance. But the glitter of the holiday season belies the health of a struggling glass industry and many Christmas ornament makers who say this year might be their last.

The annual markets, which opened Nov. 28 throughout the city, including Old Town Square and Wenceslas Square, are synonymous with holiday Prague. The organizers of the markets, Bison & Rose, are more optimistic about the markets' popularity than ever, despite the ongoing recession, which has cut tourism 20 percent and tightened purse strings throughout Europe.

"The recession has not had any effect on the Christmas markets this year - more to the contrary," said Hana Tietze, a consultant at Bison & Rose. "One effect of the recession could be that some [Czech] producers have closed their businesses. But the markets are again varied like every year."

The markets are only a small part of the larger supporting industries, and their continued success has little bearing on their overall finances. Those producers who have closed their businesses are most likely glassmakers. The Czech glass industry has been one of the largest victims of the recession, a fact made obvious by the near collapse of the largest Czech glassmaker, Bohemia Crystalex, which closed two of its four plants and let go 1,250 employees in the fall of 2008. In a trickle-down effect, independent makers of Czech glass Christmas ornaments - one of the most ubiquitous signs of the season - are now producing two-thirds less than in previous years, bringing many to the brink of ruin, according to Rudolf Jacík, owner of Czech-Christmasornaments.

"We are fighting on the border between survival or closure of the company as a result of the recession," he said.

Jacík's production facility has operated out of Jablonec nad Nisou, one of the centers of the Czech glass industry, for more than a decade.

The recession may have exacerbated the glass industry's struggles, but Jacík says the roots of the problem go farther back.

"The Czech market is overloaded with plastic products imported from China, and price is now more often the most important thing to merchants," he said.

Glass is not the only medium of ornament that has taken a hit recently because of the cheaper imports, according to the Czech Statistical Office (ČSÚ). In 2008, ornaments worth 190,408 Kč were manufactured in the Czech Republic, a decrease of 11.8 percent from the year before, said Jan Ferenc, a ČSÚ spokesman.

The fate of Crystalex has been seen as a bellwether for the Czech glass industry and, indeed, the entire Czech economy. When the company was purchased last spring by CBC Invest for 362.7 million Kč, many considered it a positive sign the recession was loosening its grip on Czech production. But smaller glass companies have little reason for optimism, Jacík said.

"We are trying to function, but the development is not as it is portrayed in the media," he said. "We do not see any upward trends. Everything is at the expense of income."

Czech-Christmasornaments has thus far been able to survive only with "great self-denial," including layoffs and production cuts, Jacík said, and his company is not alone. Obviously, the Christmas season is the most successful time of year for ornament producers, but even good sales over the holidays might not be enough to boost small producers from financial straits, said Radko Baborák, owner of BDK Glass, in Smiřice, who added that his company is struggling against the "significant" effect the recession has had on business.

The fact that BDK is selling ornaments at several Christmas markets in the Czech Republic has done little to boost businesses, he added.

Most Christmas markets have been bustling each evening since they opened, which should be a good sign for ornament producers selling their goods. The markets are traditional, said Tietze, and "we want to sell traditional Czech Christmas products," she added. But even the best Christmas sales won't be enough to help struggling ornament producers, who depend on the Czech market for up to 80 percent of their profit, said Jacík.

Bustling crowds don't always mean good sales, as market-goers aren't always there to buy ornaments and gifts, especially if they are Czech, according to Daniela Šreková, a resident of Prague who was walking through the market on Wenceslas square on a recent afternoon.

"I only go to the Christmas markets if I am nearby," she said. "It's nice to have hot wine and enjoy the atmosphere, but I prefer more personal gifts."

Stephan Delbos can be reached at

sdelbos@praguepost.com

Stephan Delbos can be reached at
sdelbos@praguepost.com