This summer, instead of a busy street full of foreign tourists, Latvia’s tourism sector is experiencing a disaster. The situation in the restaurant industry is described as catastrophic, and an appeal is made to restore this sector of Latvia’s economy.
“While it should be the season when Riga’s streets, restaurants, cafes, and hotels in the Old Town would fill with foreign tourists, this summer, things took a turn for the worse,” said Jānis Enziš, president of the Latvian Restaurant Association (LRA). According to him, restaurant industry representatives have compiled statistics showing that this summer there are fewer visitors than last year.
One reason for this may be that Latvia was in the news this summer, and not in a good way. Ukrainian drones mistakenly landed in Latvia, causing concern and fear among local residents and, consequently, reducing the number of foreign tourists. But the impact of these events on Latvia has been much more significant than on the number of visitors.
The disaster in the restaurant industry is a disaster for everyone. First, because every canceled or postponed trip means lost revenue for Latvia’s restaurant, hotel, and travel companies. Moreover, this has negative consequences for taxes and jobs in the tourism sector. “Tourism is export,” said Enziš. “That means how much money is earned when people come to Riga and other cities to shop, relax, or taste local cuisine. We cannot afford to lose this.”
Bleak Recovery Compared to Neighbors
It is not looking bright for Latvia’s tourism industry in the future. Experts say the country needs to regain confidence and prepare for a slow turnaround. Restaurants and cafes saw fewer foreign guests and spent more money on keeping their staff. Latvia is preparing to do everything to ensure that tourists can return to Riga and that business picks up again.
According to Eurostat’s statistics on accommodation in guesthouses and hotels, Latvia is far behind its North Atlantic neighbors and has the fewest tourists in the EU.
Compared to pre-pandemic 2019 levels:
- Latvia: 28.5% lower
- Estonia: 9.8% lower
- Lithuania: +0.6% growth
The disparity is striking, especially since incidents involving stray drones have affected the broader region. Why is Latvia lagging while its Baltic neighbors fare better?
Key Challenges
Industry stakeholders point to several structural issues:
- Tourism Marketing: Latvia allocates significantly smaller budgets for promotion than Estonia and Lithuania, with questions remaining about the effectiveness and targeting of existing funds.
- Lack of Major Events: Neighbors have successfully organized large, high-quality international events that draw crowds, while Latvia offers fewer attractions of that scale.
- Transport Connectivity: Connections remain a hurdle. There is no regular passenger ferry service to Riga, and flight options can be less competitive. It is often cheaper for travelers from EU capitals to reach Vilnius or Tallinn—sometimes with a layover in Riga—than to fly directly to the Latvian capital.
A Call for Action
Last year, businesses had to endure the consequences of the COVID-19 pandemic, an energy crisis, and high prices. People and local businesses have struggled to stay afloat amid skyrocketing costs and rising prices. Restaurant owners have invested and fought to keep their businesses running, hoping that the situation would stabilize this year. A white flag is not being raised in the fight against the drone effects or the lingering aftershocks of the pandemic. However, this summer’s disaster has shaken optimism.
Does Latvia have a strategy for countering this summer’s disaster and attracting more tourists? Are there plans in place to ensure the safety and comfort of guests? How much does Latvia lose in terms of economic performance and job opportunities because of such incidents as the drone landing in Riga or because residents and tourists choose Tallinn or Vilnius over Riga? This is what Latvia’s restaurant owners are asking themselves. The LRA President is confident that “there is no need to talk about how bad the situation is today; it is time to think about what to do. With so much at stake, it is time to start making decisions and fixing the problems that have arisen now – before the start of the next tourist season, in the fall and winter.”
