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Jenzis noted that this time is especially difficult for hotels due to the high burden of fixed costs. The amount of real estate and land tax in Riga is the largest of the Baltic capitals – about three times higher than in Vilnius and almost 10 times higher than in Tallinn. He revealed that the Latvian Hotel and Restaurant Association has met with Riga City Council Chairman Mārtiņš Staķis (APP), discussing this issue, and hopes for a positive outcome of the negotiations – a possible reduction, abolition or suspension of taxes.
The head of RTAB expressed hope that, despite the severe crisis, the tourism industry will be able to maintain a good, competitive infrastructure in the autumn and winter, so that work can resume in the spring and summer. According to Jenžis, the Ministry of Economics has planned 100 million euros for the creation of new infrastructure and facilities to attract tourists in the future. “I think it would be important to focus these funds on maintaining the existing infrastructure,” Jenzis said.
As noted by the RTAB representative, in 2023 it will be possible to talk about the renewal of volumes around 2018/2019. annual level. This will happen gradually, but next year it is forecasted that the number of tourists will increase, and it will increase in 2022 as well.
Jenzis said that work on next year’s reservations for various events is already underway. Work is also underway on major events planned in Riga in 2022, 2023, and 2024. According to Jenž, these will be large events with a large presence and high revenues for both the municipality and the state, as well as companies involved in the field of tourism.
“These are many areas – if hotels are closed, bed linen is not washed, if breakfast is not served, the local baker does not have a job, taxi drivers, etc. The contribution of the tourism sector to Latvia ‘s gross domestic product (GDP) OECD) is 4.5%, in fact much higher and does not cover a wide range of tourism – related industries, “said Jenzis.
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