Ministry of Economics support delivers first results in strengthening the resilience of regional tourism

Illustrative picture - Baltic sea. Source: Pixabay.com

The tourism sector in Latvia’s eastern border region has managed to recover from the wave of booking cancellations recorded in May and June (according to data from the Latvian Tourism Association), thanks to targeted public-sector measures. In August 2026, growth of 12.2% was already recorded compared with August 2025.

On 6 November 2026, the Cabinet of Ministers reviewed an information report prepared by the Ministry of Economics (MoE), summarising the latest developments in tourism in Latvia’s eastern border region following the aerial security threats and unmanned aerial vehicle activity experienced along Latvia’s eastern border in early May this year.

According to information compiled by the Latgale Tourism Association in early July, based on data provided by regional tourism businesses, geopolitical risks and security incidents in May resulted in at least 5,907 booking cancellations at accommodation establishments and tourist attractions in Latvia’s eastern border region during the first half of 2026. Furthermore, 58.5% of businesses in the region began deliberately omitting their geographical location from marketing materials to distance themselves from associations with security risks in consumers’ minds. In the second half of May, new bookings declined by 40–60%, while more than 80% of surveyed businesses anticipated negative developments at the time.

To address the crisis in Latvia’s eastern border region, additional funding was allocated in July to the Investment and Development Agency of Latvia (LIAA) to strengthen the region’s image as a safe and attractive tourist destination:

  • Support for Home Café Days was tripled, resulting in the participation of 568 home cafés across Latvia, attracting a total of 84,041 visitors.

  • Funding for digital campaigns was increased tenfold, highlighting nature, gastronomy and cultural tourism opportunities. In cooperation with content creators from Lithuania and Estonia, the campaigns reached a combined audience of 1,175,600.

  • Additional familiarisation visits were organised for international tourism professionals to experience the region’s tourism offerings firsthand. Media visits from key target markets — Lithuania, Estonia and Poland — were also arranged, both specifically to the border region and in combination with other Latvian regions. Tourism businesses from the border region will be guaranteed participation in major international tourism exhibitions, including MATKA 2027, FITUR 2027, ITB 2027 and ANTOR events in Scandinavia, among others, integrating the region’s tourism offerings into major international travel routes.

The Ministry of Economics also encouraged public authorities to organise more events directly in Latvia’s eastern border region. In total, 233 public-sector events, including training sessions, conferences and meetings, were identified and organised, attracting 93,800 participants, including visitors and representatives of the eastern border region. Examples include an off-site meeting of the Cabinet of Ministers and the Ministry of Economics’ construction industry conference in Krāslava.

Following the decline in tourism demand earlier in the year, signs of stabilisation and recovery in tourist flows emerged in Latvia’s eastern border region during the summer season. Although the number of guests served in June and July 2026 remained 6.34% and 5.65% below the corresponding months of 2025, respectively, August recorded growth of 10.22%. This was primarily driven by a 12.3% increase in domestic tourism demand, while positive trends were also observed among international visitors.

These developments indicate that domestic tourism activity, together with measures implemented by the public sector, LIAA and tourism businesses, helped partially restore tourism activity in the region during the summer season.

Data from the State Revenue Service also confirmed the positive trend and the impact of the measures. In July 2026, compared with July 2025, the value of transactions in the region’s food service sector increased by 12.2%, from EUR 3.49 million to EUR 3.91 million. The accommodation sector recorded growth of 8.5%, from EUR 691,080 to EUR 749,590, while the travel agency and tour operator segment saw an increase of 30.3%, from EUR 194,790 to EUR 253,850.

These results demonstrate the positive impact of the measures initiated by the Ministry of Economics at the beginning of the summer.

At the same time, Latvia’s tourism sector has not yet returned to its pre-pandemic and pre-war potential. Compared with the corresponding period in 2019, the total number of guests accommodated in Latvia’s tourist establishments during the first eight months of 2026 was 0.3% lower. The number of international guests remained 14.7% below the 2019 level, while the number of domestic guests increased by 30.8%.

It is therefore essential to maintain the current tourism policy and continue the export promotion measures implemented by LIAA.

Given that the deterioration in tourism conditions in Latvia’s eastern border region in spring 2026 was directly linked to geopolitical factors, particularly aerial security threats and unmanned aerial vehicle activity, it is important to ensure EU-level support measures aimed at strengthening the socioeconomic resilience of regions along the EU’s external borders.

Latvia’s experience in implementing support measures during the summer of 2026 could serve as a basis for introducing effective initiatives to strengthen the resilience of the EU’s external border regions.

As previously reported, on 23 July, Latvia’s Minister of Economics, Viktors Valainis, with the support of ministers and a state secretary from six Member States — Bulgaria, Estonia, Lithuania, Poland, Romania and Slovakia — sent a joint letter to European Commissioner Apostolos Tzitzikostas and European Commission Executive Vice-President for Cohesion and Reforms Raffaele Fitto. The letter highlighted the need to address the challenges facing the tourism sectors of the European Union’s eastern regions in the forthcoming EU Sustainable Tourism Strategy.

On 4 November, the European Commission published the EU Sustainable Tourism Strategy, a long-term policy document emphasising support for tourism businesses, particularly small and medium-sized enterprises, as well as destination management organisations. The strategy focuses on ensuring access to the skills, digital tools and data needed to promote innovation and sustainable growth.

Solutions will also be explored to reduce unnecessary administrative barriers. Key initiatives will include the EU Tourism Academy, the EU Tourism Observatory, the Common European Tourism Data Space, the EU simplification initiative for the tourism sector, and continued efforts to create a seamless and convenient European travel area.

In addition, the EU Sustainable Tourism Strategy explicitly acknowledges the challenges faced by the European Union’s eastern border regions due to the geopolitical situation and the resulting economic pressures on the tourism sector.

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