While Riga's hotels have gotten some extra room from visitors stuck in Latvia by the ash cloud, it has been a net loss as conferences have been canceled.

RIGA — Latvia’s aviation and tourism industry are incurring significant losses as a result of Europe’s airspace shutdown, with total damages likely to exceed 2 million lats (€2.8 million).

The Latvian Hotel and Restaurant Association told Baltic Reports that if in the first days after airspace was shutdown Riga hotels saw a boom, with travelers and transit passengers staying unscheduled nights, then now the situation is the opposite.

“People were willing to book a [private_supervisor]room for an extra day or two, but by Saturday and Sunday when it became clear that the situation wouldn’t improve, they started planning any way to get home,” said Santa Graikste, an association manager.

She said that many conferences have been canceled and as a result total losses for Latvian hotels as of Monday, according to preliminary calculations, would amount to several hundred thousand euros. Riga has 118 hotels, according to Latvia’s central statistics agency, which together have some 12,700 beds. Generally there is a glut of hotel space right now, and the government recently lowered the value-added tax for hotels (to be effective on May 1) from 21 to 10 percent in the hope of boosting the hospitality industry.

Meanwhile, Transport Minister Kaspars Gerhards said that Latvia’s aviation industry had lost 1 million lats as of Monday. He said Riga International Airport, the carrier airBaltic, and other aviation-related companies are currently losing money by the hour.

Martiņš Langrats, spokesman for Riga’s airport, said that the airport has lost 190,000 lats (€268,000) as a result of the Icelandic volcano. Gerhards expressed hope that some of the losses could be recouped partially by acquiring European Union funds. [/private_supervisor] [private_subscription 1 month]room for an extra day or two, but by Saturday and Sunday when it became clear that the situation wouldn’t improve, they started planning any way to get home,” said Santa Graikste, an association manager.

She said that many conferences have been canceled and as a result total losses for Latvian hotels as of Monday, according to preliminary calculations, would amount to several hundred thousand euros. Riga has 118 hotels, according to Latvia’s central statistics agency, which together have some 12,700 beds. Generally there is a glut of hotel space right now, and the government recently lowered the value-added tax for hotels (to be effective on May 1) from 21 to 10 percent in the hope of boosting the hospitality industry.

Meanwhile, Transport Minister Kaspars Gerhards said that Latvia’s aviation industry had lost 1 million lats as of Monday. He said Riga International Airport, the carrier airBaltic, and other aviation-related companies are currently losing money by the hour.

Martiņš Langrats, spokesman for Riga’s airport, said that the airport has lost 190,000 lats (€268,000) as a result of the Icelandic volcano. Gerhards expressed hope that some of the losses could be recouped partially by acquiring European Union funds. [/private_subscription 1 month] [private_subscription 4 months]room for an extra day or two, but by Saturday and Sunday when it became clear that the situation wouldn’t improve, they started planning any way to get home,” said Santa Graikste, an association manager.

She said that many conferences have been canceled and as a result total losses for Latvian hotels as of Monday, according to preliminary calculations, would amount to several hundred thousand euros. Riga has 118 hotels, according to Latvia’s central statistics agency, which together have some 12,700 beds. Generally there is a glut of hotel space right now, and the government recently lowered the value-added tax for hotels (to be effective on May 1) from 21 to 10 percent in the hope of boosting the hospitality industry.

Meanwhile, Transport Minister Kaspars Gerhards said that Latvia’s aviation industry had lost 1 million lats as of Monday. He said Riga International Airport, the carrier airBaltic, and other aviation-related companies are currently losing money by the hour.

Martiņš Langrats, spokesman for Riga’s airport, said that the airport has lost 190,000 lats (€268,000) as a result of the Icelandic volcano. Gerhards expressed hope that some of the losses could be recouped partially by acquiring European Union funds. [/private_subscription 4 months] [private_subscription 1 year]room for an extra day or two, but by Saturday and Sunday when it became clear that the situation wouldn’t improve, they started planning any way to get home,” said Santa Graikste, an association manager.

She said that many conferences have been canceled and as a result total losses for Latvian hotels as of Monday, according to preliminary calculations, would amount to several hundred thousand euros. Riga has 118 hotels, according to Latvia’s central statistics agency, which together have some 12,700 beds. Generally there is a glut of hotel space right now, and the government recently lowered the value-added tax for hotels (to be effective on May 1) from 21 to 10 percent in the hope of boosting the hospitality industry.

Meanwhile, Transport Minister Kaspars Gerhards said that Latvia’s aviation industry had lost 1 million lats as of Monday. He said Riga International Airport, the carrier airBaltic, and other aviation-related companies are currently losing money by the hour.

Martiņš Langrats, spokesman for Riga’s airport, said that the airport has lost 190,000 lats (€268,000) as a result of the Icelandic volcano. Gerhards expressed hope that some of the losses could be recouped partially by acquiring European Union funds. [/private_subscription 1 year]

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