A recent survey conducted by Generali Investments at the end of November unveils a prevailing sentiment of modest celebrations during this year’s holiday season in the Czech Republic. The study, encompassing 1050 respondents, indicates that 60 percent of Czechs plan to economize on Christmas presents, particularly those intended for relatives and friends.

Survey results reveal that two-thirds of respondents aim to scale back on various aspects of Christmas festivities. Notably, their focus is on saving during New Year’s Eve celebrations and minimizing expenditures on alcohol purchases throughout the holiday season. Additionally, a significant 70 percent of Czechs have decided against a winter vacation, citing financial constraints as the primary reason.

Concerns about the forthcoming consolidation package persist among the Czech population, even amid the holiday season. Eighty-three percent of respondents express apprehension about the package’s impact on their finances, reflecting a two percent increase compared to the end of the summer. Marek Beneš, CFO of Generali Investments, attributes this heightened concern to the impact of high inflation on household budgets, affecting 82 percent of Czechs, coupled with fears surrounding the government package.

This year’s Christmas celebrations are expected to be more frugal, with a larger proportion of Czechs planning to cut expenses compared to the previous year. A third of respondents intend to celebrate New Year’s Eve economically, while 35 percent plan to curtail spending on alcohol during the holidays. Additionally, 36 percent of people express their intent to reduce expenditures on refreshments at Christmas markets, marking a six percentage point increase from the previous year.

The inclination toward savings extends beyond the holiday season, impacting winter vacations as well. Seventy percent of Czechs, representing 315,000 more people than the previous year, have chosen not to embark on winter vacations. The survey indicates that four percent of respondents plan to opt for more affordable accommodation options in mountain areas.

Beneš notes, “Czechs have not stopped saving, according to our survey, even after a year, and the long-term rise in prices forced them to reassess financial expenses for everyday activities.” The survey underscores the prevalent impact of high energy prices on Czech households, prompting them to prioritize savings in this area.

Article by Prague Forum