Come in, bring it in: Riga is going around the world in search of tourists and investments 0 12

Unfortunately, we are still only approaching the pre-COVID and pre-war times: the number of tourists last year was 82% of the 2019 figure.

Budget Utilization

During the reporting period, the Agency's funding consisted of a basic budget subsidy and income from the municipal fee for accommodating vacationers and tourists amounting to 4,082,938 euros, as well as planned income from paid services (certification of guides) amounting to 29,687 euros. The Agency's balance for 2025 was 758,271 euros, which was included in the budget for 2026.

Since January 2022, this institution has been headed by a certain Fredis Bikovs, a graduate of the Higher Banking School and the Swiss Business School, who previously worked in several banks and international financial companies and held the position of chairman of the Business Services Industry Association. He became the head of the agency as a result of an open competition. A total of about thirty employees work under his leadership, ten of whom hold the status of public officials.

According to the report, last year our city secured an investment flow of 1,072 million euros, which could potentially create 5,060 new jobs in sectors such as global business services/centers, information technology, manufacturing, real estate, and startups.

The Agency also conducted marketing campaigns (international publications, industry reports, videos, LinkedIn, SEO, newsletters, etc.) to increase the visibility of Riga and attract investors.

Success was achieved in attracting investors from various sectors, which will allow for the creation of more than 450 new jobs in Riga, including in companies such as Epson (Japan, a global leader in printing, visualization, and manufacturing technologies), Efferon (Germany, develops and manufactures disposable medical devices for intensive care), Bronyx (Ukraine, produces plates for bulletproof vests), and others.

All Flags of the World as Guests

In 2025, the number of guests accommodated in hotels and tourist accommodation facilities in Riga reached 1,525,076 people, which is 6.9% more than in 2024. 54% of all guests from Latvia stayed in Riga.

The number of Latvian citizens residing in tourist accommodation facilities in Riga reached 21.3% of the total and increased by 11.5% compared to 2024.

The number of tourists from neighboring countries in 2025 decreased compared to 2024, but visitors from Lithuania still accounted for 10.2%, while guests from Estonia accounted for 9.9%. The number of guests from the United Kingdom significantly increased to 8.4%. Tourists from Germany still make up a significant portion of foreign guests (9.1%), and there is also a relatively large increase in the number of guests from Italy, which rose by 16.7% compared to the previous year.

Thanks to the introduced tourist tax, Riga earned 1.9 million euros in 2025 compared to 1.7 million euros in 2024.

Digital marketing remained the primary method last year – information about Riga was disseminated on American social media as part of the Europe Untold project. According to statistics, in New York, an audience of 4.7 million people was reached! In any case, funds from the municipal budget for Meta, TikTok, and YouTube were not spent – financing was provided by the European Tourism Commission. According to the Agency, this resulted in a 7.3% increase in American tourism in Riga, including a 9.4% increase in hotel overnight stays.

Unsafe and Less Profitable

Of course, not everything went as it could have been under favorable geopolitical conditions. The report states:

"The war in Ukraine continued to negatively impact the investment and tourism climate in Latvia, including Riga. As a result, some investors paused their positive decisions or also... chose another European Union state."

"In turn, in the tourism industry... a significant factor remained the cancellations of group bookings for business trips due to insufficient availability and high prices for airBaltic flights. In addition, the negative impact was caused by the suspension or reduction of Ryanair flights on certain routes, as well as the limited number of seats on flights to Riga, especially from major European airports, which did not allow for a rapid increase in tourist flow."

Wizzair also parted ways with Riga: "The main reasons for the complete departure from Riga were cited as a lack of aircraft, including issues with delivery times from manufacturers and engine malfunctions, as well as strong competition from airBaltic and Ryanair in Riga and lower profitability in Riga compared to other European airports."

British Airways, unfortunately, also suspended direct flights from Heathrow Airport in March 2026, which had positively influenced tourist arrivals since 2024.

Urban Sandbox for Business

In the past year, the municipality approved, announced, and implemented several support programs:

• Accelerators and incubators for startups: 12 applications received, 5 participants approved, total funding amounted to 170,000 euros;

• Entrepreneurship ecosystem support program: 29 applications submitted, 17 projects supported, total funding amounted to 200,000 euros;

• Diaspora relocation support program: 11 applications received, 6 of which were approved, total funding amounted to 36,900 euros;

• Startup company support program – contracts are being implemented. The total annual budget amounted to 150,000 euros.

• Riga Film Fund - supports foreign film projects planned to be shot in Riga and Latvia. In 2025, the budget amounted to 800,000 euros, supporting 5 projects, the total amount of co-financing was fully paid out. In 2025, supported film projects contributed more than 4.3 million euros to the economy.

Where Do We Lead?

Against the backdrop of external challenges and declining trends, it is gratifying to note that Riga is rated quite highly in some areas.

Thus, the capital of Latvia ranked 1st in the ranking by taxfoundation.org, which evaluates corporate income tax practices; we were also awarded 2nd place for tax competitiveness. Surveys by fdiintelligence.com placed Riga 3rd in the nomination "Human Capital and Lifestyle."

And in the investment freedom ranking by heritage.org, the city scored 85 out of 100 points. There is room for growth!