The Riga City Council and the Riga Investment and Tourism Agency (RITA) have agreed with tourism industry organisations and business representatives to increase the tourism tax in Riga. The new rate will be €2 per person per night, starting from 1 January 2027.
At the same time, an agreement has been reached on the priorities for the use of the additional revenue from the tourism tax — strengthening Riga’s international competitiveness, expanding tourism marketing activities, and developing business tourism. Plans include strengthening the “Meet Riga” brand by establishing and developing the Riga Convention Bureau to attract international conferences and business events more actively. This will enable Riga to compete with neighbouring capital cities for high-value-added events, while generating significant benefits for the hospitality, catering, transport, and other service sectors.
Inbound tourism flows remain significantly affected by the region's geopolitical situation and ongoing economic challenges. Riga is also competing with neighbouring capitals. These cities have invested more in tourism development since the COVID-19 pandemic.
Riga currently has one of the lowest tourism taxes in Europe, at €1 per person per night (0.89 EUR + VAT). For comparison, Vilnius, Kaunas, and Palanga already charge €2 per night. Several other European cities have even higher rates. Other municipalities in Latvia are also gradually introducing tourism taxes. For example, Kuldīga has introduced a €1.50 tax this year.
Fredis Bikovs, Director of the Riga Investment and Tourism Agency, emphasises: “All revenue generated from the tourism tax is reinvested in developing the tourism sector. The extra funding will allow for a long-term, predictable tourism marketing policy. This will help attract international visitors and strengthen Riga’s competitiveness in the Baltic and Northern European regions. The tax does not place an additional burden on tourism businesses because it is paid by visitors. The benefits then return to the industry and the city’s economy as a whole.”
Andris Kalniņš, President of the Latvian Hotel and Restaurant Association, comments: “We support the increase of the tourism tax. We are confident the extra funding will go directly to attracting tourists, marketing Riga, and strengthening the city’s international competitiveness. Riga currently competes with other Baltic and Northern European capitals, where much larger investments are made in tourism development and international marketing. If we want to see more tourists, more international conferences, and greater economic activity in the city, we must substantially increase the budget for attracting visitors.”
Jānis Priede, Board Member of the Latvian Convention Bureau, adds: “We see the tourism tax increase as a chance to strengthen Riga’s place in the international and Baltic competition for business tourism and events. Strengthening the Riga Convention Bureau is especially important. It will help us attract more international conferences, congresses, and other high-value-added events. In the long term, this will benefit the hospitality sector and the city’s overall economy.”
Although inbound tourism agencies and tour operators view the tax increase with caution, Ēriks Lingebērziņš, Chairman of the Board of the Association of Latvian Travel Agents and Tour Operators (ALTA), highlights the need for increased long-term investment in supporting agencies and tour operators. This support could come from the additional tourism tax revenue. He notes: “The Association of Latvian Travel Agents and Tour Operators (ALTA) supports the increase of the tourism tax. Strengthening Riga’s international visibility and developing business tourism are essential for the city’s competitiveness and for the growth of the tourism and hospitality sector. Riga can establish itself as a recognised international business and events destination in the Baltic region. This would ensure a steadier flow of tourism year-round. ALTA welcomes the initiative to support these activities through the Riga Convention Bureau. Achieving these goals also requires active industry involvement. ALTA members already participate in developing new products and providing high-quality services. It is important not only to strengthen existing support for business tourism. We must also create new, cooperation-based solutions.”
In addition to tourism tax revenue, municipal funding for tourism in Riga already increased by €2 million in 2026. The higher tourism tax is seen as a long-term tool to ensure stable, predictable funding for the sector's development.