OECD Tourism Trends and Policies 2024

Latvia

Tourism in the economy and outlook 

Tourism is a driver of the Latvian economy, but recent crises, including the proximity of Russia's war of aggression against Ukraine, the rise in consumer prices, and strong seasonality, have resulted in a slow post-pandemic recovery.

2022 was a year of growth and renewal for the Latvian tourism industry. Employment in tourism-related sectors represented 7.2% of the total workforce, equivalent to 63 400 jobs in 2022, down 16.1% from 75 600 jobs in 2019. Travel exports represented 14.5% of total service exports (EUR 1.1 billion) in 2022, still below the pre-pandemic share of 16.2%. However, an absolute increase in nominal terms was recorded, surpassing pre-pandemic levels, and for the first time, travel exports exceeded EUR 1 billion.

In 2023, Latvia recorded 2.4 million tourists in commercial accommodation, a 12.1% increase on 2022, but still 14.4% below 2019 levels, when 2.85 million tourists stayed in official establishments. Inbound tourism has taken longer to recover: 1.4 million inbound tourists stayed in commercial accommodation establishments in 2023. This represents a 22% increase on 2022, but is still 29% below 2019. Total nights spent by inbound tourists has also grown 22% compared to 2022, totalling 2.6 million nights at commercial accommodation establishments in 2023, for an average of 1.9 nights per tourist. The top international markets in 2023 were Germany, the Baltic States (Lithuania and Estonia), Nordic countries (Sweden, Finland and Norway). In the same year, the number of visitors from neighbouring countries surpassed pre-pandemic levels – Lithuania had a 23% increase compared to 2019, and Estonia, a 6.1% increase.

In contrast, domestic tourism has fully recovered in Latvia. In 2023, the country recorded 2.9 million domestic overnight trips, which is 16.2% above pre-pandemic levels, and significantly higher than the pandemic low of 1.4 million trips in 2020.

Tourism governance 

The Ministry of Economics is responsible for developing national tourism policy and organising and co-ordinating its implementation. The Ministry supervises the Investment and Development Agency of Latvia, which is responsible for implementing tourism policy and promoting Latvia domestically and abroad.

To promote the development of the tourism sector, the Ministry of Economics and the Investment and Development Agency of Latvia co-operate with several organisations through the Latvian Tourism Consultative Council. The Council is composed of members from the public and private sector, including representatives from several ministries and non-governmental organisations related to tourism.

Tourism development strategies and plans are also undertaken at regional and local levels, by planning regions or regional tourism associations, as well as local municipalities. Tourism development clusters also have specific development plans.

The Investment and Development Agency of Latvia was also responsible for implementing the promotion of international competitiveness programme (until 2023), co-financed by the European Regional Development Fund, which supports tourism entrepreneurs in various marketing activities. In 2023, the total budget for tourism marketing was EUR 3.86 million from the European Regional Development Fund and EUR 750 000 from the state budget, including administrative costs. In 2024, EUR 3.72 million have been allocated specifically for marketing activities, including administrative costs from the state budget. In addition, various support programmes are available for the representatives of the industry, such as the support for the development of new tourism products, which runs until end 2029 with a total funding of EUR 6.4 million.

Latvia: Organisational chart of tourism bodies

Source: OECD, adapted from the Ministry of Economics, 2024.

Tourism policies and programmes

Multiple national plans drive tourism policy development in Latvia. This includes the National Development Plan 2021-27 (NDP2027), the National Industrial Policy Guidelines 2021-27, the Latvian Tourism and Event Industry Export Promotion Strategy 2023-27 and the Latvian Tourism Marketing Strategy 2021-27.

The National Development Plan 2021-27 sets tourism development as a priority for Latvia's economy. The National Industrial Policy Guidelines for 2021-27 aim to strengthen the export capacity of the Latvian tourism sector, emphasising the need to create new internationally competitive tourism products to increase competitiveness and quality.

The Latvian Tourism and Event Industry Export Promotion Strategy 2023-27 aims to increase Latvia's tourism exports to EUR 1.5 billion in 2027. Latvia also uses funding from the EU to enhance the export capacity of the tourism sector and increase the country’s competitiveness abroad. Currently, the Ministry has developed two action plans for the export promotion strategy of the tourism and event industry:

• Ensuring the international recognition of Latvian tourism (see box below).

• Business and event tourism export promotion.

Several policies have been identified to help implement plans and meet targets. These include developing products and destinations through the creation of innovative tourism offerings, focusing on increasing the added value of offerings, creating co-operation opportunities for tourism providers and strengthening skills of entrepreneurs in the sector.

Effective marketing activities are also being created to promote Latvia as a tourism destination, showcasing the uniqueness of Latvian tourism offerings. The Latvian Tourism Marketing Strategy 2021-27 stipulates that promotion efforts should focus on business, health, cultural and nature tourism products. Tourism marketing actions include participating in tourism roadshows abroad, developing advertising campaigns for international target markets, organising visits for journalists and social media content creators, as well as tourism operators and business event organisers, and conducting tourism market research.

To better understand tourist behaviour and expenditure, Latvia has transitioned from border surveys to foreign payment card data collected by the Bank of Latvia. This shift provides more precise analyses, allowing the discovery and investment in new niches and the expansion of tourism offerings to a broader market.

Furthermore, the business environment is being improved through amendments to the regulatory framework. In 2024, Latvia plans to amend the Law on Tourism, the system of provision and monitoring of complex tourism services, the regulation of short-term rental accommodation, and other objectives to improve the business environment, including the implementation of measures to reduce the administrative burden on enterprises.

Actions to improve Latvia’s image as a tourism destination in times of geopolitical unrest

One of the biggest challenges for the tourism sector in Latvia is to improve the country's image as a safe tourist destination, especially due to the country’s proximity to a conflict zone. Prior to Russia’s war of aggression against Ukraine, approximately 30% of tourists visiting Latvia came from Russia, Belarus, and Ukraine. To achieve pre-pandemic levels in terms of tourist arrivals, Latvia will need to target new source markets, such as Germany, Finland, Sweden, Norway, and the United Kingdom.

To attract these markets, Latvia aims to improve tourist information, promote Latvia as a safe destination and enhance competitiveness and attractiveness. This includes prioritising the development and digitalisation of the sector to offer high quality services at a competitive price. In 2023, the Latvian Tourism and Events Export Promotion Strategy for 2023-27 was developed in collaboration with the Latvian Tourism Advisory Council.

The Strategy is complemented by the Latvian Tourism Marketing Strategy for 2021-27, which co-ordinates foreign tourism marketing activities. The Strategy was developed within the Marketing and Product Development Subgroup of the Latvian Tourism Advisory Council with extensive consultation with relevant stakeholders or their representatives.

Latvia also looks at targeting food tourism. In 2023, Michelin launched its first guide of Latvia, including over 20 restaurant recommendations.

Statistical Profile

Latvia: Domestic, inbound and outbound tourism

	2018	2019	2020	2021	2022
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips	10 948	10 416	6 153	8 282	9 296
Overnight visitors (tourists)	2 584	2 501	1 367	2 392	2 828
Same-day visitors (excursionists)	8 365	7 915	4 786	5 890	6 468
Nights in all types of accommodation	5 514	5 792	4 083	6 604	7 198
Hotels and similar establishments	478	538	477	759	752
Other collective establishments	508	676	542	856	823
Private accommodation	4 528	4 577	3 065	4 989	5 622
Inbound tourism
Total international arrivals	7 775	8 342	3 204	1 937	..
Overnight visitors (tourists)	1 946	1 935	636	478	..
Same-day visitors (excursionists)	5 829	6 408	2 568	1 459	..
Top markets
Lithuania	275	309	205	66	..
Germany	260	245	44	48	..
Russian Federation	244	298	85	76	..
Estonia	176	210	90	45	..
Sweden	91	40	13	13	..
Nights in all types of accommodation	7 864	8 266	2 872	2 847	..
Hotels and similar establishments	3 049	3 549	757	390	..
Other collective establishments	395	320	424	596	..
Private accommodation	4 419	4 397	1 691	1 861	..
Outbound tourism
Total international departures	2 176	2 384	689	629	1 729
Overnight visitors (tourists)	1 368	1 480	432	512	1 303
Same-day visitors (excursionists)	807	904	258	117	426
Top destinations
Estonia	206	161	90	83	236
Lithuania	157	166	54	31	154
Russia	117	102	..	..	..
Sweden	100	100	..	30	31
Germany	80	98	48	27	37
TOURISM RECEIPTS AND EXPENDITURE, MILLION EUR
Inbound tourism
Total international receipts	1 381	1 412	825	848	1 683
International travel receipts	896	907	698	634	1 050
International passenger transport receipts	485	505	127	214	633
Outbound tourism
Total international expenditure	857	871	554	712	1 148
International travel expenditure	660	669	486	625	960
International passenger transport expenditure	197	202	68	87	188

.. Not available

Source: OECD Tourism Statistics (Database).

Statlink

Latvia: Enterprises and employment in tourism

	Number of establishments	Number of persons employed
	2022	2018	2019	2020	2021	2022
Total	..	..	..	..	..	..
Tourism industries	16 427	77 100	75 600	68 300	61 200	63 400
Accommodation services for visitors	1 584	5 600	6 600	6 300	4 600	4 800
Hotels and similar establishments	494	4 500	5 400	5 000	3 000	3 700
Food and beverage serving industry	4 639	26 700	25 500	23 300	21 200	21 900
Passenger transport	1 801	16 800	13 600	11 300	12 000	11 900
Air passenger transport	19	2 200 e	..	..	..	..
Railways passenger transport	41	2 700	2 100	..	..	..
Road passenger transport	1 709	10 900	9 500	8 000	8 200	7 800
Water passenger transport	32	..	..	..	..	..
Passenger transport supporting services	..	..	..	..	..	..
Transport equipment rental	895	..	..	..	..	..
Travel agencies and other reservation services industry	808	2 500	2 000	2 100	..	..
Cultural industry	2 449	11 500	12 600	13 000	11 600	12 500
Sports and recreation industry	4 251	13 700	15 000	11 600	9 900	9 400
Retail trade of country-specific tourism characteristic goods	..	..	..	..	..	..
Other country-specific tourism industries	..	..	..	..	..	..
Other industries	..	..	..	..	..	..

.. Not available; e Estimated value

Source: OECD Tourism Statistics (Database).

Statlink