Arriving at Prague’s main railway station as the sun set over the city, we remembered the travel advice we’d received before our trip — look for an official taxi with a yellow roof light; check for a registration number on the taxi’s front doors; and make sure the taxi meter is turned on.

We made our selection carefully, eyeing the long line of taxis in front of the rail station. Confident in our choice, we headed off to our hotel located in Staré Mesto, Old Town. Our taxi driver pointed out landmarks along the way, explaining we’d find English widely spoken throughout the city.

“Is normal.”

He also warned us of the many money-changing scams in Old Town Square.

“Is normal.”

We arrived at our hotel, paid our fare and went to check in. A look of concern crossed the bellman’s face. We’d paid how much? It had taken how long to arrive from the rail station? We soon found out that we’d received an expensive lesson about Prague taxis — ripoffs are more than common, they’re customary.

It is, well, normal.

After four decades of Communist rule, Prague is fast adjusting to a capitalist economy, sometimes in fits and starts. Admitted into the European Union in 2004, the city quickly is making up for lost time, drawing both business and leisure travelers who come for its mix of history and hipness. A favorite with budget travelers in the ’90s, the city still offers lower prices than those found in many other European destinations. Prague also boasts the ease of travel found in Western Europe combined with the edginess of Eastern Europe — all in one easy-to-like package.

Those lower prices — along with its mysterious allure as a destination formerly behind the Iron Curtain — have helped tourism grow. Last year, the Czech Republic welcomed 6.4 million visitors. Projections for 2006 call for a 4 percent growth in the number of foreign visitors. Sixty percent of those travelers visit Prague. The city, with its population of 1.2 million, was first a curiosity for travelers following the governmental change. Today the city lures visitors with its mix of architectural styles, a medley of international cuisines, and a smorgasbord of cultures.

Although Prague doesn’t have a strict business district thanks to companies located throughout the city and in the suburbs, much of the business — as well as leisure — action takes place in the center of town called Praha 1. This district encompasses Mala Strana (Lesser Town), Staré Mesto (Old Town), Hradcany Hill, Josefov (the Jewish quarter), Nove Mesto (New Town), and Wenceslas Square. This walkable district, which spans both sides of the Vltava River, is home to the lion’s share of the city’s attractions as well as many top hotels.

As tourism grows in importance, the region’s economy continues to rely on industries such as power engineering and fuels, metallurgy, engineering, glass, wood and armaments while service and high-tech industries are expanding, especially in Prague. Recently Sun Microsystems opened a new development center in the city. Zdenek Pilz, general manager of Sun Microsystems’ Czech branch, explained, “Prague was chosen especially thanks to its abundance of software-development specialists, excellent infrastructure, stable economic and political environment, and — of no less importance — the helpful attitude of the government as represented by the agency CzechInvest.”

CzechInvest, established in 1992 by the Ministry of Industry and Trade, serves as the investment and business development agency for the government. Manufacturing and high technology centers are some of the most courted businesses, lured with numerous incentives. Manufacturing-plant initiatives include corporate tax relief, job creation grants, and training grants while technology center and business support services receive subsidies for up to 50 percent of the eligible costs covering investment in tangible and intangible fixed assets purchased within the first five years or t wo-year salaries of employees employed within the first three years plus 35 percent subsidies for training employees.

Investment by foreign companies also has been spurred by a January amendment to the nation’s Income Tax Act. The new changes include the addition of tax-deductible expenses related to both the transport of employees to the workplace and temporary housing; a common system for taxation of parent companies and subsidiaries; a tax exemption of dividend income; and a tax exemption for research and development. The changes have helped solidify the Czech Republic’s position as the leader in Central Europe in terms of foreign direct investment inflow per capita with more than 99,000 Czech firms, many in and around Prague, now supported by foreign capital.

DIVERSIONS

One of Europe’s best-preserved cities, Prague invites exploration by foot. As much as specific sights, the city is an attraction in itself with its winding streets, ancient buildings and picturesque bridges along the Vltava River. A magnet for travelers, the Charles Bridge connects Old Town with Mala Straana, Little Quarter, home of Prague Castle. The bridge is an attraction in itself, lined with statues as well as street vendors. The road leads to Prague Castle, the seat of Czech government for more than a millennium. Today many buildings are open to the public; one of the most unique sites is the Golden Lane where small buildings once housed goldsmiths (and, in No. 22, even Franz Kafka).

After a few hours at the castle, most travelers head back to Old Town and its historic square, lined with outdoor cafes and home to the Astronomical Clock. Crowds fill the square on the hour to watch the 15th century clock, with its many celestial symbols and 12 apostles, ring in the hour. Also in the square, the Mucha Museum (Kaunicky palác, Panská 7, 420 224 216 415, www.mucha.cz) is dedicated to the work of Alfons Mucha, considered the founder of the Art Nouveau movement. From Old Town, travelers also can stroll to the historic Jewish Quarter, one dating back to the 10th century, or to New Town, best known for its Wenceslas Square. This popular square is home to many restaurants and bars. The square, which through the years has been a major public gathering spot and can hold as many as 400,000 people, is watched over by a statue of good King Wenceslas in front of the National Museum.

Nightlife in Prague is a mixed bag, ranging from inexpensive Vivaldi and Mozart concerts in the halls of Old Town to operatic performances at the Estates Theatre (Ovocny thr 1, www.estatestheatre.cz), where Mozart’s The Marriage of Figaro and Don Giovanni once were staged. For something far more casual, check out one of the black light theaters featuring a wordless show, somewhat of a Prague institution performed under black lights.

The shops along the Old Town streets also provide an evening diversion for many visitors, selling everything from Czech nesting dolls and garnet jewelry to glassware and colorful puppets. Absinthe, a legal spirit in Prague, is another popular purchase.

Who’s Who

Checking in with Willy Ribbe, cluster general manager for Prague Marriott Hotel, Renaissance Prague Hotel and Marriott Executive Apartments

Global Traveler: Please tell us about your background in the hospitality industry and how you came to be at the Prague Marriott.
Willy Ribbe: I have been in the hospitality industry for more than 30 years working for a variety of properties, ranging from hotels with smaller operations to the ones with a capacity up to 1,500 rooms. I worked in the United States for many years in various food and beverage positions, and then I moved to Europe in 2000 where I was appointed as resident manager of the Bucharest Marriott Grand Hotel. My most recent assignment was in the Budapest Marriott Hotel and Millennium Court Executive Apartments where I served as general manager. In April 2003, I became cluster general manager for Prague Marriott Hotel, Renaissance Prague Hotel and Marriott Executive Apartments.

GT: How has Prague changed during your tenure at the Prague Marriott?
WR: The whole country has experienced an amazing economic growth in the past years. The Czech currency is becoming increasingly stronger, and many more investors are bringing their business to this country.The Czech Republic has also become a part of the European Union two years ago and the standard of living is moving closer to the western part of Europe.

GT: In talking with your guests, what most surprises travelers about Prague?
WR: The beauty of this town is enormous. Everybody has heard about it, but people get really so surprised, mesmerized without exaggeration, by the beauty of the historic sites.They are so close to each other, that you cannot take your eyes off the surroundings for hours; there is always something fascinating to look at, if you just take a stroll through the Old Town.

GT: Based on your experience, how do you predict Prague will change in the coming 10 years in terms of appeal for business travelers?
WR: By the year 2010, the Czech Republic will transfer its currency to euros, so it will be compatible with the rest of Europe. Prague also plans to extend the international airport significantly in the near future, so this higher capacity will create smooth conditions for tourism and international travel. Other international hotel companies will open their properties in Prague, so it will provide a wider selection for travelers. I personally wish Prague to stay as beautiful and charming as it is, so that leisure and business travelers can enjoy its incomparable beauty for many years to come.

Just the Facts

Time Zone: GMT +1
Phone Code: 420
Currency: Czech Koruna (Crown)
Entry/Exit Requirements: U.S. citizens need a passport that is valid for three months beyond the intended stay. Visas are not required for U.S. citizens for up to 90-day visits.
Official Language: Czech
Key Industries: Machinery and chemical production, food production, electronics, tourism, engineering.

INFO TO GO

Praha Ruzyne Airport (PRG, www.csl.cz/en/) is located about 12 miles from the city although travelers should budget half an hour to 50 minutes for the trip due to traffic. Express minibus shuttles as well as taxis and bus service connect the airport to the city center. The cost for a taxi from the airport to the city center is about $15 U.S.

Prague also has an extensive public transit system, the Metro. The network consists of three lines running from the Dejvicka station, Zlicin station, and Muzeum. The Metro operates from 5 a.m. to midnight, running every two or three minutes during peak rush hours and four to 10 minutes at other times.