The Ministry of Economics plans to allocate about €1.5 million to support the tourism sector in Latgale. The decision comes against the backdrop of a sharp decline in the number of tourists following incidents involving drones and warnings of air threats in the eastern part of the country.
To support the tourism sector in Latgale, the Ministry of Economics intends to redistribute about €1.5 million from existing resources. This was announced in an interview with Latvian Radio by the Minister of Economics, Viktors Valainis.
The funds are planned to be directed towards various initiatives to promote the region, including participation in international tourism exhibitions and specialized conferences. It is expected that this will help attract event organizers and rekindle tourists' interest in the region.
According to the minister, the amount could have been larger; however, under the current circumstances, the ministry managed to find a way to redistribute exactly this volume of funding.
The support is related to the problems that the tourism sector in Latgale has faced in recent months. Business representatives state that after a series of incidents involving drones and warnings from the emergency alert system, many foreign tourists began to cancel their trips to the region.
According to the Latgale Tourism Association, the number of canceled bookings by foreign tourists and tour operators has already reached 60%. At the same time, interest from residents of Latvia has also decreased. Many are refusing trips to border areas due to safety concerns.
This is particularly sensitive for hotels, guesthouses, campsites, restaurants, and tourist attractions, as the cancellations occurred during the preparation period for the summer season. Compared to the same period last year, the number of bookings has decreased by about 40%.
The industry warns that if the current trend continues, some businesses may face serious financial difficulties, including the suspension of operations and staff reductions.
At the same time, the government is preparing other support measures for the region. Valainis reported that at the government’s off-site meeting in Latgale on June 27, a mechanism for compensating losses related to drone arrivals from abroad is planned to be discussed.
It is expected that both individuals and entrepreneurs will be eligible for compensation if they incur damages.
In addition, authorities continue to work on the Law on the Development of the Eastern Border Area. The document provides for special support measures for entrepreneurship, attracting investments, developing infrastructure, and preserving the population in regions located along the borders with Russia and Belarus.
This is not only about tourism. The new law is intended to create a long-term support system for the eastern border area, including funding for municipalities, road development, social services, education, and investment protection mechanisms.
Thus, the government is trying to simultaneously address two tasks: to help the tourism sector overcome the current crisis and to create more sustainable conditions for the long-term development of Latgale.
Leave a comment