Prostitution: Legal

Brothel Ownership: Illegal

Pimping: Illegal

The red lights are going out across Europe as prostitution falls victim to the credit crunch... In the Czech Republic, where prostitution operates in a legal grey zone but is largely tolerated, the sex industry is big business, generating $A760 million, much of it from British visitors, according to Mag Consulting, a tourism research company in Prague that studies the sex industry.

Jaromir Beranek, the director of Mag, said that when Germany and Britain, the two countries that send the most tourists to Prague, began to stagnate, sex tourism was affected too. Brothels have started laying off working girls while the shutters go up on the larger bordellos.

Near the border with Germany, many towns long blighted by a daily influx of sex tourists are pleased at the decline in business. A few years ago, the small Czech town of Dubi was so overrun by prostitution an orphanage was opened to provide refuge for dozens of unwanted babies of prostitutes and their German clients.

Sex could be bought for as little as £3.50 ($7.90). Now 40 brothels in town have shrunk to just four — the others have turned into golf shops or goulash restaurants."

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