Analytics, Latvia, Tourism

2008 was a year of increasing competition and stabilization of the numbers of tourists coming to Latvia, therefore improving the quality, services and efficiency of tourist accommodations became increasingly important.

Nozare.lv points out that this trend was common not only in Latvia but the entire European Union. Quality is also a major factor in the European Parliament's renewed tourism policy.

There have also been measures to protect tourists from fraud in Latvia, Nozare.lv writes.

Travel agencies were working on improving efficiency in 2008, and it is safe to say that the work will continue in 2009, as raising efficiency is very important at a time the economic activity is decreasing, stressed CelojumuBode.lv board member Kaspars Gegeris.

Many travel agencies have improved their websites, being aware of the increasing importance of the Internet for their sales. Already now, a large part of airline ticket, travel, hotel and other bookings are made on the Internet.

This year the government, regardless travel agencies' protests, decided to increase the value-added tax rate for tourist accommodations from 5% to 21%. This poses serious threat to the tourism sector, even bankruptcies are possible. Staff cuts will probably be made at many travel agencies, which may lead to lower quality and fewer travelers coming to Latvia.

Representatives of the Latvian hotel business are planning to appeal the government decision to the Constitutional court.

Expert Janis Jenzis emphasizes that the government has made several mistakes that will affect the tourism sector in the long term. First, the VAT on the tourism sector was increased and, second, the Latvian Tourism Agency's offices in Stockholm, Helsinki and Moscow were closed.

The number of visitors at rural tourism destinations decreased 20% this year, compared to 2007, and the number of foreign travelers decreased the most, said the Latvian Rural Tourism Association Lauku celotajs President Asnate Ziemele.

Ziemele explains that this is because of increasing prices, the current economic downturn, poor rural infrastructure and too much bureaucracy that the managers of accommodations in rural areas have to deal with.