As Náchod had virtually no ethnic German population, it did not suffer from the massive deportations of 1945–46. It became a somewhat peripheral town during the Communist era (1948–89) as cross-border contacts in the Soviet-dominated bloc were not encouraged. The situation changed in the 1990s and especially when both Czech Republic and Poland became part of the Schengen area in 2007. The 1990s saw a rapid decay of local cotton industry, while some new manufacturing businesses were established. The opening of the border gave a new boost to the traditional tourist industry in the attractive hilly country, as outdoor activities now extend across to the Polish Góry Stolowe National Park.