RIGA, May 18 (LETA) - Riga City Council plans to double the Latvian capital's tourist tax from January 1, 2026, raising it to EUR 2 per person per night from the current EUR 1, LETA was told at the city council's press office.

The agreement was reached after representatives of the Riga Investment and Tourism Agency (RITA) and Riga City Council met with tourism industry organizations and business representatives.

At the same time, participants of the meeting defined priorities on which the city will be spending additional revenue from the tourism tax: strengthening Riga's international competitiveness, tourism marketing activities, and the development of business tourism.

The local government also plans to strengthen the Meet Riga brand by establishing and developing the Riga Congress Bureau to attract international conferences and business events more actively. This will allow Riga to compete with neighboring capitals for high value-added events, while at the same time making a significant contribution to the hospitality, catering, transport, and other service sectors.

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 currently 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.