Latvia’s Tourism Restart: Changes in the Sector and New Objectives

In light of the pandemic and global challenges, Latvia’s tourism industry has undergone significant change. According to the Central Statistical Bureau of Latvia, in 2024 hotels in Latvia hosted 1.6 million foreign guests, a 14% increase over the previous year, and the average number of nights spent in hotels increased by 10%. The increase in the number of tourists from the strategic target countries defined by the Latvian tourism industry (Lithuania, Estonia, Scandinavia, Germany, the UK, as well as the USA, Canada, Japan, and the UAE) is particularly significant. Experts stress that the industry is transforming, and the profile of the average tourist has also changed.

Most foreign travellers still choose Riga as their destination in Latvia (71.5% of all foreign tourists), followed by Jūrmala (8.4%), Mārupe (3.3%) and Liepāja (3%). Among the main countries of origin of tourists are Latvia’s neighbouring countries: Lithuania (18%), Estonia (11%) and Germany (10%). However, the most significant increase in tourist last year was recorded from Canada (+118% year-on-year), and the number of visitors from Spain (+109%) and Japan (+51%) also grew significantly. Experts attribute these trends to improved air traffic connections, as well as successful marketing activities and special events that have attracted visitors from these regions.

Latvia’s tourism strategy currently identifies the USA, Canada, Japan, the UAE, and South Korea as the priorities among distant markets. The results for 2024 demonstrate positive trends in these markets: alongside Canada and Japan, the number of tourists from the UAE and Australia has increased by 34% and 28% respectively, and from the USA by 5.7%. The only exception is South Korea, from where the number of tourists fell by 35.6% last year.

Looking at the situation in the sector, based on the average number of nights spent in accommodation, foreign travellers have spent an average of 1.8 nights here, while domestic tourists have stayed an average of 1.7 nights. With more tourists visiting us last year, the total number of overnight stays by both foreign and domestic tourists increased by 10% and 3.2% respectively compared to the previous year. Particularly tourists from Canada (+106%), Spain (+74%) and the United Arab Emirates (+50%) stayed for more nights. It is also significant that tourists from these regions not only visit Latvia more often, but also stay longer, which contributes to the economic contribution of tourism.

Role of domestic tourism

Domestic travel continues to grow, which is very good news for the industry. Inese Šīrava, Deputy Director of the Export and Innovation Services Department of the Investment and Development Agency of Latvia (LIAA), emphasises that while foreign tourists traditionally focus on Riga, Greater Riga and other popular destinations in Latvia such as Sigulda, Cēsis, Jūrmala and Liepāja, regional tourism outside these centres is driven by travellers from Latvia and, to a lesser extent, from neighbouring countries. In 2024, 1.1 million Latvian residents were hosted in tourist accommodations, which is 6.4% more than the year before and also 22.7% more than in 2019, which is often cited as the peak year for tourism prior to the pandemic. These data show an increasing interest and confidence in local offerings, which are strategically important and can offset fluctuations in tourism from abroad.

According to Ms Šīrava, the main advantages for Latvia in the eyes of both domestic and especially foreign tourists, remain its unspoilt nature, the Baltic Sea coastline, and active recreational opportunities such as the Baltic Coastal Hiking Route and the Baltic Forest Trail. For tourists from far-away countries, Latvia is often a new and undiscovered destination, offering peace and proximity to nature, unlike the overcrowded popular tourist destinations of Europe. Although competition in the tourism sector is huge and Latvia’s resources for international advertising are limited, various strategic approaches are being used.

“Latvia focuses on priority markets and niche products, trying to reach its target audience with fewer but more focused resources,” Ms Šīrava explains. Participation in tourism fairs and international cooperation have also played an important role: for example, through cooperation with Lithuania and Estonia the Baltic region is being promoted as a single destination in distant markets. Latvia has also set up a joint pavilion with neighbouring Lithuania at this year’s EXPO in Japan.

Emerging competitive advantage: a temperate climate

Latvia’s temperate climate may become an increasingly important and strategic factor for attracting tourists as climate change and hot summers in Southern Europe encourage travellers to seek cooler and greener destinations, experts explain. LIAA agrees: “High temperatures in popular destinations such as Italy and Spain are encouraging both domestic and international tourists to choose alternative destinations. This trend is also confirmed by the latest tourism data – interest in Latvia has increased significantly in the last year by tourists from Spain, France, and Italy. Visitors to Latvia also appreciate a break from mass tourism, which has become problematic elsewhere and hampers quality relaxation,” Ms Šīrava explains.

The sector’s strategic objectives for Latvia also include the development of business tourism, which is building back momentum after the pandemic. Latvia is positioning itself as a venue for high-level events and conferences, as evidenced by its successful participation in such international events as the Europe Events Club Associations Forum 2025, a gathering of tourism industry professionals held in Riga earlier this year. In the coming years, it is planned to focus on the development of new tourism products, especially through tourism networks that promote innovation and sustainable solutions in the sector, the LIAA representative says. 

Reorientation of markets due to the geopolitical situation

According to Jānis Jenzis, Head of the Latvian Restaurants’ Association, Director of Opera Hotel Riga and lecturer, the current geopolitical situation and the war in Ukraine are unfortunately still a negative factor for Latvia’s tourism industry: “Tourism in our region was very negatively affected by the war, which coincided with the recovery from the pandemic – bookings and business tourism events were cancelled. The situation was difficult and we are still dealing with various challenges. It is understandable, of course: if people are not sure about the security aspect, they choose not to go because holidays should be worry-free,” he says.

Additional challenges in recent years include the decline in competitiveness of the catering industry due to high costs and the lack of Russian and Belarusian tourists, who were frequent visitors to Latvia before the start of the war in Ukraine. 

Attracting Michelin as an excellent strategic step

At the same time, the sector is also showing positive trends, with gastronomic tourism in particular booming. “Collaboration with the Michelin Restaurant Guide has, in my opinion, been one of the best investments in the tourism industry in the last decade,” Mr Jenzis notes. Feedback from members of the association suggests that restaurants are already seeing economic returns from the increase in bookings, and this trend should definitely be developed further.

Moreover, the tourism potential of Riga and Latvia lies not only in cuisine, but also in culture, fashion and the creative industries. In particular, he believes that organising international events, a creative approach and good publicity are key: for example, the unexpectedly full hotels in December 2024 were linked to the high ranking of the Riga Christmas Market in an international publication. “This proves that creative events and good publicity can attract significantly more tourists. Riga would need 8-10 international events a year to stabilise tourist flows. It is important that such events are organised in a focused way also in the low season to reduce the impact of seasonality on the tourism industry,” Mr Jenzis emphasises.

Although the geopolitical situation is dampening the expansion of business tourism, Latvia has the advantage of creative and flexible travel agencies that are able to offer quality solutions. “Conferences and congresses are planned at least a year or two in advance and talk of war escalation does not help. In this respect, our own communication can be an important factor: for Latvia to be positioned as a safe and attractive destination, active and strategic communication in the international arena is necessary,” he says. He also mentions closer cooperation between the industry and public authorities in the coverage of various events and activities as another important tool to be used in the future development of the Latvian tourism industry, even with limited resources, because it is the creative events that can potentially attract the largest number of tourists and enable it to compete with other destinations. 

Accommodation pricing still affordable

According to Inga Korneliusa, Regional Sales Director for the Baltics at Radisson Hotel Group, the competitiveness and future potential of Latvian tourism will be closely linked to the ability to effectively position itself on the international market. Hotel prices are also a competitive advantage for Latvia at the moment. “Hotel prices in Latvia are still competitive – they are only now returning to 2019 levels, as market conditions do not allow prices to rise as fast as in other sectors. This aspect gives Latvia an advantage, as rising prices in other countries make travellers look for better value for money, which Riga and Latvia can offer,” Ms Korneliusa says. 

Tourism development is based on good connectivity, which has become a key factor in attracting tourist flows. Riga has a strong advantage in this respect, says the hotel chain spokesperson, with a large network of direct flights operated by the local airline and the return of other airlines to the route maps following the pandemic, making it easier to access the city. “Our airport is modern, the connections are convenient and the proximity to the city is an undeniable asset. The city itself is compact and easy to walk around. Visitors get to enjoy top quality hospitality and dining, and all of it at competitive prices,” she says. 

Business and experience-focused tourism as prospective areas

The seasonal distribution of tourist flows also demonstrates clear trends: in summer, hotels welcome both business and leisure travellers, while in the low season, corporate travellers, conferences and events dominate. Therefore, in her opinion, special attention should be paid to promoting Riga as a conference and business tourism destination. “We need more visibility on the international market to attract more conference, congress and event organisers. Riga deserves to be among Europe’s leading event destinations,” she stresses.

Experiential tourism is also becoming increasingly popular – travellers want not only to see, but also to actively participate and gain unique experiences. “Tourists are increasingly looking for interactive, innovative and exciting activities – from cooking masterclasses to rides in marked cars and role-playing games that allow them to immerse themselves in the roles of members popular bands or participants of historical events and get actively involved. Latvia has a lot to offer in this respect – we have excellent agencies that have gained recognition for their creativity and innovation also outside Latvia,” she says.

“We are still encountering outdated ideas about Latvia. It is time to change this image and clearly demonstrate the multitude of experiences that our country as to offer. Riga must continue to position itself as a hidden gem in Europe – with excellent dining, world-class events and unprecedented experiences,” Ms Korneliusa concludes. 

While there is no shortage of challenges, one thing is clear – Latvia is full of potential and, with smart marketing investments and improved international visibility, it could become one of Europe’s tourism hotspots.