State support for the reopening of a ferry line between Riga and Stockholm would make sense, but it is necessary to assess how exactly it would be provided, the LETA News Agency was told by a series of bank economists who were asked to comment on the Latvian Transport Ministry’s plan to provide potential support for the resumption of ferry services.
SEB Banka economist Dainis Gaspuitis says that from the perspective of the geography of tourism, it is clear that Latvia receives the most visitors from neighbouring countries. Exchanges with other countries around the Baltic Sea would, therefore, be desirable for the industry and the economy and should therefore be supported.
“The Riga-Stockholm line is one of the most promising routes that could be launched,” Gaspuitis says. “The problem is that businesspeople do not see sufficient commercial potential for the reopening of this route, and so they are choosing other options instead.”
The economist went on to note that a situation in which Latvia would benefit while entrepreneurs are disinterested means that the provision of state and/or municipal aid would be rational without any need to engage in business operations.
“If the matter is addressed sensibly, Latvia would end up with a positive balance,” Gaspuitis says. “It is, therefore, important not to drag one’s feet to long when it comes to this matter.”
Economist Peteris Strautins at the Luminor Bank also told LETA that the idea makes sense, but he added that the amount of support, potential passenger numbers and other such issues would also be important.
“There is no doubt that the plan, if implemented wisely, can help the economy,” says Strautins. He adds that this would have to do with cross-subsidies, which are a widely applied tool in purely commercial areas of business which do not involve any state aid.
LETA was told by the Latvian Transport Ministry that ferry services between Riga and Stockholm could resume in 2026 and no earlier than that.
Source: BNS
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