October 2, 2023 8:23 pm

EU hotel industry chief calculates impact of anti-Russia sanctions on business — RT Business

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Latvia’s tourism industry has taken a significant hit, losing a third of its tourists, following the country’s decision to downgrade ties with Russia due to the Ukraine conflict. Andris Kalnins, the president of the Association of Hotels and Restaurants of Latvia, expressed doubts that the loss would ever be fully recovered.

For many years, Latvia has been a popular destination for Russian travelers, thanks to its close proximity to Russia and historical ties as a former part of the Soviet Union. However, in September 2022, the Latvian government implemented a ban on tourism from Russia, with Foreign Minister Edgar Rinkevics bluntly stating on Twitter, “You’re not welcome here – you need to end the war against Ukraine and be gone from that beautiful country!”

This ban mainly affects Russian visitors, with exemptions for EU residence permit holders and certain other categories. The impact on Latvia’s tourism industry has been devastating, as Russians previously accounted for a third of all visitors to the country.

Andris Kalnins noted the impossibility of fully replacing the loss of the Slavic market that Latvia has experienced. He stated, “We used to have about 30% of tourists coming from Russia.” This loss is a significant blow to the country’s economy, particularly to the hotels and restaurants that heavily relied on Russian tourists.

In response to the Wagner Group mutiny in Russia, Latvia further tightened its border controls and ceased issuing visas to Russian citizens altogether. This escalation in measures reflects the growing tension and strained relations between the two countries.

Acknowledging the importance of the Russian market, industry players within Latvia’s tourism sector have expressed their concerns about the ban’s economic impact. Vladislav Koryagin, the CEO of the Baltic Travel Group, acknowledged the loss, stating, “Of course, we miss it.” He further added, “From an economic perspective, this decision may not have helped local businesses.”

The loss of Russian tourists has created a void within Latvia’s tourism industry, and it may take years to fully recover, if recovery is ever possible. With the uncertainty surrounding the conflict between Ukraine and Russia, it remains unclear when or if relations between Latvia and Russia will normalize.

Latvia’s tourism industry now faces the challenge of finding alternative markets and attracting new visitors to make up for the loss. It will require strategic planning and innovative marketing initiatives to regain and rebuild the country’s position as a tourist destination. In the meantime, Latvian hoteliers and restaurateurs are left grappling with the financial impact of the ban and navigating a future that remains uncertain.

In conclusion, the ban on most Russian visitors has taken a devastating toll on Latvia’s tourism industry. With a third of its tourists gone, the country faces an uphill battle to recover from this loss. The impact is not only financial but also cultural, as Latvia loses the opportunity to showcase its beauty and attractions to Russian travelers. The future remains uncertain, and the tourism industry must adapt and explore new avenues to rebound from this setback.

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Original Source: EU hotel industry chief calculates impact of anti-Russia sanctions on business — RT Business

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