Praha/Karlovy Vary - Czech Finance Ministry decided to give Karlovy Vary´s hotel Thermal millions of crowns to build its own thermal water source in the lobby.
The Thermal Hotel is known for holding an annual Karlovy Vary International Film Festival. Karlovy Vary is also well-known for its thermal water springs, Moser glass and Becherovka liquer.
Tourists from all around the world flock to this city of spas and relaxation. Among the most famous was Peter the Great, Russian tzar, Johann Wolfgang Goethe, German poet and philosopher and Ludwig van Beethoven. To see the latter two strolling down the city´s streets was nothing uncommon.
"The Ministry decided to give Thermal - F company CZK 20 million, which is to be used for building a huge congress hall and its own thermal water source as well as services related to that," stated Ivan Fuksa, Deputy Finance Minister. Thus the company´s basic capital grew this July.
Congresses and conferences are a highly profitable business, as congress tourists spend much more than regular tourists.
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Complicated privatization
The Czech government has been trying to privatize the Thermal Hotel since mid-1990s but a number of lawsuits have slowed down the whole process.
All the court hearings have been adjourned. "The last one was adjourned in August 2008," says Finance Ministry in its statement.
The X and R company has been trying to sue the Czech state claiming it is be their firm that is entitled to become the property owner. The dispute has been pending since mid-1990s.
The X and R firm took the second place in a tender announced by the Fund of National Property. The company Jasmín that won the tender failed to pay the purchase price of CZK 500 million.
Czech government would like to keep the International Film Festival ongoing in the hotel even after the hotel is privatized. "The new owner has to accept this condition," added Fuksa.
