Since the start of the year, Riga has implemented a deferred tourism tax that lodging providers must collect and remit. This move came as part of pandemic recovery efforts and aligns Riga with several other European destinations. The change has been reported by DEA News with information sourced from the Delfi.lv portal.
Beginning January 1, 2023, visitors in Riga, much like travelers in many cities across Europe and around the world, are subject to a tourist tax. The tax is designed to support the local tourism ecosystem by reinvesting in the visitor experience and related infrastructure.
Current reporting indicates that the tax is set at 1 euro for each night of a guest’s stay, with a maximum cap of 10 euros per guest per visit. Minors are exempt from paying the levy. The revenues collected are earmarked for projects that enhance tourism development and infrastructure, and to help elevate Riga’s international profile as a destination, ensuring that the city remains competitive and welcoming for travelers. This statement is drawn from official messaging and corroborated by Delfi.lv reporting. Source: Delfi.lv
Riga is not alone in adopting this approach. Similar charges exist in other well known cities such as Berlin, Amsterdam, Rome, Venice, Vienna, Brussels, and Lisbon. Authorities in Riga had considered the tax earlier in 2021 but postponed the implementation due to a downturn in tourist arrivals caused by the pandemic. The objective now is to channel funds back into projects that enhance the visitor experience, expand tourism capacity, and bolster Riga’s appeal on the international stage.
Industry observers note that if a tourism tax is introduced or heightened in neighboring markets, it can influence pricing structures across the sector. In response to potential tax changes, the Turkish Hoteliers Federation warned that higher costs could lead to increased tour prices and a broader impact on hotel profitability. The federation suggested that any pass through of these costs to consumers could affect demand, though the exact outcome would depend on broader market dynamics and consumer behavior. Such conversations illustrate the delicate balance cities seek between funding tourism infrastructure and preserving affordability for travelers.