Business Briefs
Lowest employment figures in six years in hotel industry
Just 27,000 people were employed in the hotel segment last year, the lowest number in the past six years, though the number of hotel guests has grown in the past three years, according to a study conducted by MagConsulting. There are now 2.09 employees per 1,000 guests in Czech hotels, and at least 2.2 are needed to maintain high-quality service, according to the consulting agency. Staff at hotels started to fall in 2009 as a result of the financial crisis.
Just 27,000 people were employed in the hotel segment last year, the lowest number in the past six years, though the number of hotel guests has grown in the past three years, according to a study conducted by MagConsulting. There are now 2.09 employees per 1,000 guests in Czech hotels, and at least 2.2 are needed to maintain high-quality service, according to the consulting agency. Staff at hotels started to fall in 2009 as a result of the financial crisis.
Spike in personal bankruptcies
Personal bankruptcies rose 77 percent year on year in January to 1,292 declared cases, according to the Czech Credit Bureau. The number of companies going bankrupt over the same period rose 27 percent to 226. In 2011, a total of 2,413 companies went bankrupt with small businesses accounting for the majority of claims.
Personal bankruptcies rose 77 percent year on year in January to 1,292 declared cases, according to the Czech Credit Bureau. The number of companies going bankrupt over the same period rose 27 percent to 226. In 2011, a total of 2,413 companies went bankrupt with small businesses accounting for the majority of claims.
Drop in number of unemployed
The number of unemployed who successfully completed retraining programs sank roughly 30 percent last year - from 2010's 61,449 to 43,203, according to data published by the Labor and Social Affairs Ministry. Changes in the retraining program took effect this year. Now the unemployed can choose their own retraining course and request payment for the course from the labor department, which will decide based on the applicant's health condition and chances on the labor market.
The number of unemployed who successfully completed retraining programs sank roughly 30 percent last year - from 2010's 61,449 to 43,203, according to data published by the Labor and Social Affairs Ministry. Changes in the retraining program took effect this year. Now the unemployed can choose their own retraining course and request payment for the course from the labor department, which will decide based on the applicant's health condition and chances on the labor market.
ČEZ asks for simplification of conditions for investment in energy market
Conditions for investment in new projects on the European energy market must be simplified so as to enable creation of an integrated market with electricity and natural gas, Alan Svoboda, head of the trading division of ČEZ, said at the Prague European Energy Forum Feb. 1. The EU wants to establish a single European energy market by 2014, but investors and representatives of the energy industry in attendance at the forum complained that frequent changes in legislation and inconsistencies in laws from country to country have created an uncertain environment that cools investment enthusiasm.
Conditions for investment in new projects on the European energy market must be simplified so as to enable creation of an integrated market with electricity and natural gas, Alan Svoboda, head of the trading division of ČEZ, said at the Prague European Energy Forum Feb. 1. The EU wants to establish a single European energy market by 2014, but investors and representatives of the energy industry in attendance at the forum complained that frequent changes in legislation and inconsistencies in laws from country to country have created an uncertain environment that cools investment enthusiasm.
Czech Republic has good debt-to-GDP ratio
In the third quarter of last year, the Czech Republic was among the best countries in the EU in terms of debt-to-GDP ratio, the daily Právo reported Feb. 7. The country ranked in the top seven with a debt rate of 39.8 percent of GDP. The best was Estonia with 6.1 percent, while the worst were Greece with 159.1 percent and Italy with 119.6 percent.
In the third quarter of last year, the Czech Republic was among the best countries in the EU in terms of debt-to-GDP ratio, the daily Právo reported Feb. 7. The country ranked in the top seven with a debt rate of 39.8 percent of GDP. The best was Estonia with 6.1 percent, while the worst were Greece with 159.1 percent and Italy with 119.6 percent.
Drop in inflow of foreign direct investment
Inflow of foreign direct investment (FDI) fell 54.9 percent year on year to 64.5 billion Kč ($3.4 billion/2.6 billion euros) in the first three quarters of 2011, with the biggest drop seen in share capital investment, the Industry and Trade Ministry said Feb. 6. In 2010, FDI inflow more than doubled to almost 130 billion Kč, after a drop in 2009 caused by the economic crisis. Germany and Austria were the largest investors, bringing in 38.6 billion and 12 billion Kč, respectively.
Inflow of foreign direct investment (FDI) fell 54.9 percent year on year to 64.5 billion Kč ($3.4 billion/2.6 billion euros) in the first three quarters of 2011, with the biggest drop seen in share capital investment, the Industry and Trade Ministry said Feb. 6. In 2010, FDI inflow more than doubled to almost 130 billion Kč, after a drop in 2009 caused by the economic crisis. Germany and Austria were the largest investors, bringing in 38.6 billion and 12 billion Kč, respectively.
Tender for ČSA to issued in near future
A source at the Finance Ministry said a tender for the sale of Czech Airlines (ČSA) will be issued near the end of the first quarter this year, and Russian companies are interested, weekly Týden reported Feb. 7. Meanwhile, low-cost airline SmartWings will begin servicing some of the destinations recently dropped by ČSA, like Athens, or may add routes to Budapest now that the Hungarian national carrier Malév is defunct.
A source at the Finance Ministry said a tender for the sale of Czech Airlines (ČSA) will be issued near the end of the first quarter this year, and Russian companies are interested, weekly Týden reported Feb. 7. Meanwhile, low-cost airline SmartWings will begin servicing some of the destinations recently dropped by ČSA, like Athens, or may add routes to Budapest now that the Hungarian national carrier Malév is defunct.
-19 °C, Prague, Czech Republic
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