Riga hotels short of medium-priced beds

RIGA - The Latvian government could be facing major losses through the tourist industry this summer. Three new hotels are being built in Old Riga, but the question is, are they needed with the Latvian tourism industry in a slump, or are they being built too late?

According to tourist organizations, there are not enough hotels to accommodate the average, run-of-the-mill tourist who wants to spend their tourist dollars in Latvia.

Latvia is hosting the EBRD annual meeting this May and tourism agencies are screaming for rooms from Latvian hotels. The incoming department manager of Latvia Tours, Brigita Veinberga, said there is a shortage of hotels in Riga to accommodate overseas tourists.

"Over the summer period there are not enough rooms with a standard of three stars," said Veinberga. "We have had to knock back at least 15 groups who have wanted to visit Riga this summer."

The summer tourist trade is worsened by Hotel Latvia's being closed for a year starting at the end of May for renovation. Another three star hotel will not be available for overseas tourists until 2001.

The question tourist agencies are asking is why are there more four and five star hotels being built when there is demand for more financially affordable accommodation.

Andris Rozitis, director of the travel agency Globus, also said rooms are desperately needed in Riga for the average traveler.

"Rooms are desperately needed over summer in Latvia. We survive in Latvia over the summer months and can not find enough affordable accommodation for overseas tourists," said Rozitis. "This is not just the fault of hotels but the Latvian Tourism Agency, because they do not promote Latvia outside the tourism season."

Rozitis said that the Latvian Tourism Agency has no idea about tourism.

The Latvian Tourism Agency said tourism should pick up this year and the financial results will not be a fluke.

"We have done enough to promote Latvia as a tourist destination," said Aivars Kalnins, director of Latvian Tourism Agency. "We are fulfilling the government's expectations and tourism agencies and hotels should not complain about the job we are doing."

Kalnins said the hotels need to fill their rooms first and then ask for help from the agency to promote tourism.

But hotels such as Hotel Riga and Hotel Konventa Seta are not relying on the LTA to sell their available room space. They have geared their off season trade to business men and do not only rely on the summer tourism trade. This they have achieved through their own advertising and marketing.

Juris Subacs, general director of Hotel Riga, said that a positive attitude is needed to sell service and one should not rely on the summer tourist trade.

"Competition is good with the three hotels being opened in Riga," said Subacs. "It's peanuts being dropped in the bucket. Latvia needs competition in the hotel industry. Hotels need to advertise themselves," Subacs said.

Ober-Haus group is building a five star hotel in the center of Riga and the general manager, Bernhard Loew, said the exclusive niche of a quiet luxury hotel is needed in Riga.

Loew also said that the Latvian Tourist industry has not done enough to encourage tourism in Latvia.

"No, they have not done enough but it's always easy to say nothing is being done. What really bites is that the prices are really expensive," said Loew.