According to the Czech tourism Agency, the number of tourists visiting the Czech Republic increased by 6% y/y in 2005 to a record 6.4m, 60% of whom visited Prague. The number of tourists is expected to increase by another 4% y/y in 2006 on the back of higher tourist levels from Asia and Eastern European countries. The growth in the tourist levels should be positive for Orco’s hotels in the Czech Republic, which should also benefit from a new strategy aimed at targeting corporate customers. We reiterate our Buy recommendation on Orco although we do not expect the news to have any significant impact on today’s trading.