RIGA, July 9 (LETA) - Starting next year, the tourist tax in Riga will double, according to amendments adopted by the Riga City Council to the binding regulations on the municipal tax for accommodating vacationers and tourists in Riga.

The current fee of EUR 1 will be raised to EUR 2 per person per night. The base rate of the fee will be EUR 1.78, which, together with value-added tax, amounts to EUR 2.

The total fee may not exceed EUR 17.80 for the entire continuous period of stay at a tourist accommodation facility.

The binding regulations will take effect on January 1, 2027.

According to the local government, foreign tourism flows continue to be significantly affected by the geopolitical situation in the region and economic challenges. At the same time, Riga is competing with the capitals of neighboring countries, which have invested significantly more resources in tourism development since the Covid-19 pandemic.

Riga has one of the lowest tourist taxes in Europe - EUR 1 per person per night (EUR 0.89 plus value added tax).

In Vilnius, Kaunas, and Palanga, the tourist tax is currently EUR 2 per person per night, while in several other European cities it is even higher. Other municipalities in Latvia are also gradually introducing a tourist tax. For example, Kuldiga is introducing a EUR 1.5 tourist tax from this year.

Fredis Bikovs, Director of the Riga Investment and Tourism Agency, emphasizes that all the money raised from the tourist tax is invested in the development of the tourism industry. The additional funding will allow for a long-term and predictable tourism marketing policy, attracting foreign visitors and strengthening Riga's competitiveness in the Baltic and Northern European region.

At the same time, the levy is not an additional burden for tourism businesses, as it is paid by the city's visitors, while the benefits are returned to the industry and the city's economy, says Bikovs.

In addition to the income from the tourism levy, Riga City Council funding for tourism activities has been increased by EUR 2 million in 2026. The increase in the tourist tax is seen as a long-term instrument to ensure stable and predictable funding for the development of the sector.

As reported, Riga City Council introduced the tourist tax in 2023. The same year, the tax was reduced to EUR 0.89, which, together with value added tax, amounted to EUR 1.