The tourism sector in Latvia’s eastern border region has managed to recover from the high wave of reservation cancellations in May and June (LTA data), thanks to targeted action by the public sector. As of August 2026, a 12.2% increase has already been recorded (compared to August 2025).
On November 6 of this year, the Cabinet of Ministers reviewed an informational report prepared by the Ministry of Economics (EM), which summarized current information on the state of tourism development in Latvia’s eastern border region following the air threats and drone activities experienced in early May of this year along Latvia’s eastern border.
According to information compiled by the Latgale Tourism Association in early July of this year, based on data provided by businesses in the region’s tourism sector, in the first half of 2026, geopolitical risks and the security incidents that occurred in May in Latvia’s eastern border region led to at least 5,907 cancellations of reservations at lodging facilities and tourist attractions, while 58.5% of businesses in Latvia’s eastern border region began deliberately omitting their location in their marketing efforts to distance themselves from associations with security risks in consumers’ minds. In the second half of May, a 40–60% decline in new reservations was observed, and more than 80% of the surveyed businesses predicted negative trends at that time.
At the same time, to address the current crisis situation in Latvia’s eastern border region, additional funding was provided in July of this year by the Latvian Investment and Development Agency (LIAA) to strengthen the border region’s image as a safe and attractive destination:
Support for “Home Café Days” was tripled, resulting in a total of 568 home cafés participating across Latvia and 84,041 visitors;
Support for digital campaigns was increased tenfold, highlighting nature, gastronomy, and cultural tourism offerings; in collaboration with content creators from Lithuania and Estonia, a total audience of 1,175,600 was reached;
In addition, visits by incoming tourism professionals were organized to introduce the region’s tourism offerings in person. On-site visits by media representatives from the most relevant target markets – Lithuania, Estonia, and Poland – were organized, both directly in the border region and in combination with visits to other regions. Border region tourism businesses will be guaranteed participation in the most significant international tourism trade shows (MATKA 2027, FITUR 2027, ITB 2027, ANTOR events in Scandinavia, etc.), integrating the region’s offerings into major international tourism itineraries.
The Ministry of Economics also called on public authorities to organize more events specifically in Latvia’s eastern border region. In total, 233 public sector events (training sessions, conferences, meetings, etc.) were identified and organized, with a total of 93,800 participants (guests and representatives from the eastern border region). Examples include the Cabinet of Ministers’ off-site meeting, the Ministry of Economics’ Construction Sector Conference in Krāslava, and other events.
Following a decline in tourism demand at the beginning of the year, signs of stabilization and recovery in tourist flows were observed in Latvia’s eastern border region during the summer season. Although the number of visitors in June and July 2026 was still 6.34% and 5.65% lower, respectively, than in the corresponding months of 2025, an increase of 10.22% was recorded in August. This was primarily driven by a 12.3% rise in domestic tourism demand, while positive trends were also observed in the foreign visitor segment. This indicates that, thanks to domestic tourism activity and measures implemented by the public sector, the LIAA, and industry stakeholders, tourism activity in the region was partially restored during the summer season.
“The results of the summer season confirm that targeted government support has helped revive tourism activity in Latvia’s eastern border region. This positive trend does not yet mean that the region’s businesses have overcome the challenges posed by the geopolitical situation. Traveler confidence and stable demand develop over the long term, so continued government support is essential for the region’s competitiveness. The LIAA will continue to promote tourism offerings in the eastern border region in nearby foreign markets, helping to maintain interest in the region as an attractive travel destination. “The most important thing right now is to consolidate the progress we’ve made and prevent the temporary recovery in tourism activity from being followed by another drop in demand,” emphasizes Ieva Jāgere, Director of the Latvian Investment and Development Agency.
Similarly, data from the State Revenue Service reflected the impact of these measures and a positive trend: in July 2026, compared to July 2025, the value of transactions in the region’s food service sector increased by 12.2% (from 3,485.92 to 3,911.21 thousand EUR), while the accommodation sector saw an 8.5% rise (from 691.08 to 749.59 thousand EUR), while the travel agencies and tour operators segment recorded a 30.3% increase (from 194.79 to 253.85 thousand EUR).
The results mentioned above indicate the effectiveness of the measures initiated by the Ministry of Economics at the beginning of the summer.
At the same time, Latvia’s tourism sector has not yet reached its pre-pandemic and pre-war potential. Compared to the corresponding period in 2019 – the total number of guests accommodated in Latvian tourist accommodations during the first eight months of 2026 was 0.3% lower; specifically, the number of foreign guests was down by 14.7%, while the number of domestic guests increased by 30.8%.
Consequently, it is essential to continue the current tourism policy and for the LIAA to implement export promotion measures.
Given that in the spring of 2026, the tourism development situation in Latvia’s eastern border region deteriorated specifically due to geopolitical factors (air threats and drone activity along Latvia’s eastern border), it is essential to ensure EU-level support measures for the socioeconomic resilience of the EU’s external border. The experience gained from the measures implemented by Latvia in the summer of 2026 can serve as a basis for introducing effective measures to ensure the resilience of the EU’s external border.
As previously reported, on July 23 of this year, Latvian Minister of Economy Viktors Valainis, with the support of ministers and state secretaries from six member states – Bulgaria, Estonia, Lithuania, Poland, Romania, and Slovakia – sent a joint letter to European Commission Commissioner A. Dzidzikosts and the (EC) Vice-President for Cohesion and Reforms, R. Fito, regarding the need to address the challenges facing the tourism sector in the eastern regions of the European Union in the upcoming European Union strategy for sustainable tourism.
On November 4 of this year, the European Commission published the EU Strategy for Sustainable Tourism, a long-term policy document in which it emphasizes support for tourism businesses, particularly small and medium-sized ones, as well as destination management organizations, by ensuring access to the necessary skills, digital tools, and data to foster their innovation and sustainable growth. Solutions will also be sought to reduce unnecessary administrative barriers. Key initiatives will include the EU Tourism Academy, the EU Tourism Observatory, the Common European Tourism Data Space, the EU simplification initiative for the tourism sector, and ongoing work toward the creation of a unified and user-friendly European Travel Area. In addition, the EU Sustainable Tourism Strategy highlights the challenges facing the European Union’s eastern border regions due to the geopolitical situation and the resulting economic pressure on the sector.