The Latvian catering industry meets the season with cautious optimism — while entrepreneurs hope for a revival in the summer, the main risks remain high prices, low purchasing power of the population, and insufficient numbers of tourists.
This was stated by the head of the Latvian Restaurant Association, Janis Enzis, on the program "900 seconds" on TV3.
Industry representatives acknowledge that the past period has been full of challenges, but with the arrival of spring, hopes for a better season arise.
"It has been a very difficult time, the period of trials is behind us, but everyone was smiling — this means that the approach of the season and the sun have given hope and optimism," Enzis said.
However, economic factors continue to significantly influence the situation. As the industry representative emphasized, restaurant attendance is directly related to the thickness of residents' wallets.
"Latvia has the lowest purchasing power among the population, and visiting restaurants is directly related to this," he explained.
Additional pressure is created by inflation and rising costs. Enzis noted that many businesses have not fully passed the price increases onto customers.
"Catering enterprises have compensated for the rise in inflation by reducing profits or even incurring losses," he admitted.
A significant problem in Latvia remains the lack of tourists, which directly affects the industry. Moreover, the situation is worsened by the reduction of government funding for tourism marketing.
"If Latvia reduces the tourism marketing budget from three million to two, it will not contribute to an increase in the number of tourists — this is quite obvious," Enzis said.
Compared to neighboring countries, Latvia lags behind in this area. "Lithuania and Estonia have budgets that are three times larger. If you advertise yourself three times more, you will have three times the return," he added.
The expert emphasized that tourism is closely linked to the catering industry and makes a significant contribution to the economy. "A tourist comes and pays here — this is an exporting industry. Money comes into the country," he explained.
Despite the challenges, there are positive examples in Latvia. Enzis highlighted high-class restaurants that are capable of attracting international attention.
"We have two restaurants with a Michelin star, and there are several outstanding chefs who are on the path to even greater achievements," he noted.
At the same time, a number of restaurants are already forced to close, influenced by both costs and seasonal factors.
To improve the situation, according to Enzis, political decisions are necessary, especially in the tax sphere. "I would immediately tackle taxes — on fuel and VAT. This would be the quickest solution to help the industry and residents," he emphasized.
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