South Bohemia: The Pearl of the Czech Republic
12.03.2009, Sharing a border with both Austria and Germany, the Czech Republic’s South Bohemia region was attractive to settlers in past eras due to its favourable location. This advanced industrial region grew out of the originally melancholy region of Klostermanovská Šumava, a land of forests and fish ponds. South Bohemia’s natural beauty and rich history continue to ensure the development of the local travel industry, which comprises one of the pillars of business in the region.
A region of world-famous beer and unique monuments
South Bohemia is divided into seven districts – České Budějovice, Tábor, Písek, Strakonice, Jindřichův Hradec, Český Krumlov and Prachatice, whereas the city of České Budějovice is the region’s cultural and administrative centre.
České Budějovice lies at the confluence of the Vltava and Malše Rivers, thanks to which it was an important trade centre on the Salt Road in times past. When speaking of České Budějovice it is important to mention its fame among beer connoisseurs, as the city is home to a pair of leading breweries, the world-renowned Budvar and the well-known Budějovický měšťanský pivovar (previously Samson), which is the oldest brewery in České Budějovice. The region’s brewing tradition extends beyond České Budějovice, however, as celebrated breweries can also be found in Český Krumlov (Egenberg), Protivín (Platan) and the picturesque Třeboň (Regent), where the brewery trade dates back to 1379.
České Budějovice is a very picturesque city with the Czech Republic’s largest and arguably most beautiful quadratic town square, whose dominant feature is the Samson fountain. The city’s historical centre has a range of interesting monuments and a large number of pleasant pubs (the famous Masné Krámy being particularly noteworthy), clubs and galleries. České Budějovice is also known for the oldest horse-powered railway line in Europe, the basis of the modern railway network built in 1825-1832. The line ran 120 kilometres from České Budějovice to Linz. The remains of this early technical marvel are housed in the city’s railway museum.
Another jewel of South Bohemia is Český Krumlov, which has been on the UNESCO World Heritage List since 1992. This unique town is widely admired particularly for its winding lanes, romantic nooks with inimitable Czech pubs and a remarkably well-preserved complex of baroque buildings with an imposing castle above the meandering Vltava. Excellent exhibits of world-renowned artists, concerts, music festivals and theatrical performances are held here often. The city is also home to the world’s oldest baroque theatre. With its unique atmosphere, Český Krumlov is a small yet cosmopolitan city surrounded by a luscious, unspoiled countryside.
Třeboň, a city of fish ponds, summer festivals and bicyclists is yet another remarkable municipality in South Bohemia. The city offers extensive spa services and beautiful surroundings with trails traversing the enchanting spaces between fish ponds and the area’s natural wonders.
The region’s economy: a triumphal mix of industry and agriculture
South Bohemia has long enjoyed an unemployment rate (3.51% as of June 2008) that is significantly lower than the national average (5.01% as of June 2008). Among other distinguishing features, the region has the Czech Republic’s lowest population density and accounts for 5.5% of the country’s gross domestic product. The most significant investors in the region are mainly firms from Germany, Austria and the Netherlands. South Bohemia’s economy is to a great extent based on using locally sourced raw materials, which has underpinned the development of the local timber, paper, glass, ceramics and construction-materials industries. The textile industry, represented by firms such as Otavan and Jitex, and the pencil manufacturer Koh-i-Noor also play a significant role. The food industry, which involves meat-packing as well as the processing of local agricultural products (for example in the brewery and dairy industries (the local firm Madeta is the Czech Republic’s biggest milk processor), has built a strong position in the region. Currently, the most important sectors in terms of added value are manufacturing (predominately production of vehicles and equipment as well as food and beverage production), vehicle repair and personal-needs products (particularly for households) and activities in the area of real estate and leasing. Industrial production is concentrated mainly in the České Budějovice agglomeration and in the Tábor, Písek and Strakonice districts. Agriculture is focused on vegetable production, primarily cultivation of cereal crops, oil-bearing plants and potatoes, whereas livestock production is mainly geared toward cattle and pigs. Aquaculture has a long tradition in South Bohemia, which produces half of the Czech Republic’s fish in ponds covering a total of 25,000 hectares.
A hub of prestigious educational and scientific institutes
South Bohemia is relatively isolated geographically, which conceals its significant advantages for investors in comparison with other regions in the Czech Republic and Europe as a whole. Thanks to the difficult natural conditions in which the region was settled, a large proportion of the population became used to changing occupations and work habits several times throughout their lives as the need arose, when regular employment was not available in surrounding regions. From the time of Empress Maria Theresa in the 18th century great emphasis was placed on education and skills with particular focus on the Czech lands, which formed the industrial heart of the Austro-Hungarian Empire. This trend continues today, and for investors it is not a problem to find a sufficient number of highly skilled employees for any sector, whether in agriculture and food production or the manufacturing industry. In the case of specific requirements for workers, investors can expect effective cooperation from local labour offices, CzechInvest agency and the South Bohemian Regional Office, whose employees are able to provide professional assistance while helping incoming firms ease into their new environment.
South Bohemia boasts a range of high-quality educational and science-research institutions. Among the most significant of these is the University of South Bohemia in České Budějovice with seven faculties (Natural Sciences, Economics, Philosophy, Pedagogy, Theology, Health and Social Studies, and Agriculture) and the Institute of Physical Biology in Nové Hrady and the Institute of Fish Farming and Hydrobiology in Vodňany. The region is also home to the Biology Centre of the Academy of Sciences of the Czech Republic (ASCR), whose individual institutes are engaged in scientific research in the areas of general and applied entomology, hydrobiology, parasitology, molecular and cellular biology, genetics, physiology, soil biology and other fields. Other successfully operating facilities in the region include the Microbiology Institute of the ASCR in Třeboň, the Botany Institute of the ASCR, also in Třeboň, and the Faculty of Management of the University of Economics Prague in Jindřichův Hradec. Other institutes of an educational or science-research character, particularly in technical fields, are currently being established in South Bohemia. We can take as examples the establishment of the University of Technology and Economics in České Budějovice, cooperation between the Sezimovo Ústí Professional Training Centre and the Czech Technical University in Prague, and cooperation between the Secondary Industrial School of Automotive Technology and the University of West Bohemia in Plzen.
Favourable conditions for investors
An investor that wants to establish operations in the region can expect full support from the regional authorities as well as from individual municipalities, which are willing to accommodate investors to the maximum possible extent. Support begins with services for potential or incoming investors. Based on a brief definition of requirements, a search will begin for the most suitable location for the given investment with consideration given to all criteria, such as transport accessibility, sufficient labour supply, management facilities, local infrastructure, possibility of further development in future, etc. Of course, the region offers a broad range of developed properties that investors may use immediately. An interesting alternative for investors is the possible use of brownfields, which comprise a significant part of the South Bohemia region’s business properties. A large proportion of these disused properties are found in relatively interesting locations with great development potential. This primarily concerns buildings formerly used for agricultural, military or residential purposes.
Like the rest of the Czech Republic, South Bohemia has one of the densest railway networks in Europe, which in combination with its network of Class I and II highways enables fast, high-quality transportation throughout the region. In future, this network will be supplemented with the planned D3 and R3 highways and construction of a fourth rail corridor. A number of border crossings provide easy connection with Austria and Germany. South Bohemia also features an international airport and several regional airfields. České Budějovice Airport offers significant potential with its expansive developed areas and ambition to become an important transport hub in the greater region.
South Bohemia currently supplies surrounding regions with energy generated by the Lipno hydroelectric plant and Temelín nuclear power plant. With such energy infrastructure in place, it is not a problem to satisfy the needs of highly demanding operations for the price of minimal modifications in the existing distribution network. The region is generally considered to have a high standard of living, which is due in part to its relatively pristine environment, its attractiveness as a tourist destination and extensive residential construction.
Among the other favourable aspects of the region that have attracted numerous investors, we can mention the industrial zone in Písek, where a range of significant international companies, such as Faurecia, AISIN (automotive) and Schneider Electric (electrical engineering) have set up operations. The automotive sector is well represented in České Budějovice, where Robert Bosch built its headquarters with participation from CzechInvest. Beyond the automotive industry, we must mention Viscofan, a producer of food packaging based in České Budějovice.
South Bohemia is clearly a place that should be on the itinerary of any visitor to the Czech Republic, as it offers a full range of natural and cultural attractions for tourists and a wealth of opportunities for investors. Simply put, it is not hard to fall in love with this pearl of the Czech Republic.
Robert Bártů,
CzechInvest