CS IT

PRAGUE FIGHTS TOURISM-DRIVEN PRICES

11. 3. 2025

The Prague 1 district has introduced an innovative initiative to counteract rising store prices, a phenomenon increasingly prevalent due to the heavy influx of tourists in the area. The growth of tourism has led to a significant increase in the cost of goods and services, creating difficulties for local residents who face higher daily expenses compared to other parts of the city. To address this issue and provide concrete support to the population, the district authorities have decided to implement specific measures to benefit local citizens.

In particular, residents of Prague 1 will be able to take advantage of a 15% discount on groceries at eight Žabka chain stores located in the district’s main residential and tourist areas. This initiative was designed to alleviate the financial burden on those living permanently in the historic center of the Czech capital, where prices in stores catering to tourists are often significantly higher than in other areas of the city.

The main goal of this measure is to improve the quality of life for residents by making essential goods more affordable and countering the trend of citizens traveling to other districts to shop at lower prices. Local authorities hope that this initiative will not only provide immediate relief but also serve as a step toward greater economic fairness, narrowing the gap between the needs of local residents and the economic pressures generated by mass tourism.

 

Why Is This Agreement Necessary?

According to a study conducted by the Prague 1 district, many residents prefer to shop outside the area to avoid the increased costs, a trend that this initiative aims to reverse. “Supporting our residents is an absolute priority. With this discount, we aim to make their daily lives a little easier,” said Karel Grabein Procházka, a district councilor, in an official statement.

The agreement was formalized between Karel Grabein Procházka, the Prague 1 district councilor, and Radim Lunda, the CEO of Žabka. Procházka stated that the primary objective is to provide concrete assistance to local citizens by facilitating access to essential goods at fairer prices.

 

Digital Access

To benefit from the discount, residents must register via the “Moje Žabka” app. During registration, they will be required to provide identification to verify their residence within the Prague 1 district. At the time of purchase, customers must present the app at checkout to receive the 15% discount.

The eight selected stores cover the district’s main residential and tourist areas, ensuring easy access to the discount for most residents.

 

Reactions and Criticisms

While many residents have welcomed the initiative, some local representatives consider it only a first step. Martin Motl, chairman of the Prague 1 Council’s Committee on Trade and Services, pointed out that Žabka is perceived as a chain with high prices and a limited range of essential products.

“Although we appreciate the effort, more must be done to tackle the problem of high costs. We suggest launching a public tender to attract new operators who can offer a wider range of goods at competitive prices,” Motl said.

 

Future Impact

Local authorities hope that this measure will lead to lasting changes in the local market. Karolína Šnejdarová, spokeswoman for Prague 1, indicated that an information campaign is being planned to raise awareness among residents about the initiative.

This new measure could serve as a model for other urban areas facing similar challenges, balancing the needs of residents with the economic pressure generated by tourism. With the rising cost of living, initiatives like this represent a tangible step toward ensuring greater price equity, reducing the gap between residents and visitors in the heart of Prague.

 

Conclusion

In conclusion, the Prague 1 district’s initiative represents a concrete first step toward mitigating the economic impact of tourism on local residents. While some argue that additional measures are necessary to address the issue of rising prices more comprehensively, the 15% discount at Žabka stores provides immediate and tangible relief. If this strategy proves successful, it could become a model for other cities facing similar challenges, striving to balance the needs of local citizens with the pressures exerted by mass tourism.

 

Sources: https://www.expats.cz

Máchova 838/18, 120 00, Prague, Czech Republic

Stay up to date on all Dreamville news

Subscribe to the newsletter