Latgale tourism service providers point to critical situation in sector due to drone incidents and frequent cell broadcast alerts

RIGA - The Latgale Tourism Association (LTA) has addressed an open letter to the highest state officials, ministries and the parliament, pointing out the critical situation in the sector related to drone incidents and frequent cell broadcast alerts.

LTA noted that it is appealing on behalf of the tourism and hospitality industry of Latgale region, local governments "in connection with a critical and rapidly escalating situation which is now directly threatening the economic stability, business environment and future development of Latgale region".

Tourism service providers pointed out that the events of recent weeks in the eastern border region of Latvia - repeated drone incidents, regular air warnings, cell phone alerts, the activation of NATO fighter jets and crisis communication dominating the public space - have had severe consequences for the tourism industry in Latgale.

"These consequences are already catastrophic, as foreign tourists and tour operators are massively cancelling their bookings, with the number of cancellations already reaching 60 percent," said LTA.

Corporate events and school trips are also being cancelled. LTA claimed that some municipalities have banned their pupils from visiting Latgale.

The organization has also found out that Latvians are choosing not to visit Latgale because of security fears, resulting in a dramatic drop in bookings for hotels, guesthouses, campsites, restaurants and tourist attractions just before the summer season. Bookings are down by 40 percent compared to the same period last year.

According to the LTA, these factors create the preconditions for the bankruptcy or closure of tourism and hospitality companies in the Latgale region and the dismissal of employees.

"The Latgale tourism industry is currently experiencing its worst crisis since the pandemic. The data for May 2026 shows a drastic and alarming decrease in the number of tourists compared to the same period last year. The 2026 summer season in Latgale has been destroyed," the organization said.

At the same time, the LTA pointed out that the standstill of hotels, guesthouses and tourist facilities in Latgale is not just a local problem in one region. "It is a chain reaction that directly affects local producers, farms, catering, transport providers and employment in the region as a whole," the organization said.

LTA members are convinced that maintaining economic stability in the Latgale border region is a matter of national security, as "an empty and economically weakened border is a national risk". Therefore, retaining local entrepreneurs in the region is in Latvia's strategic interest.

"As this is a crisis created by force majeure and the country's external security context, its consequences cannot be dealt with by entrepreneurs on their own. Therefore, we urge the responsible ministries to urgently introduce specific state support instruments to ensure the preservation of Latgale's tourism and hospitality businesses in the region," urged LTA.

In their view, the situation could be improved by abolishing labor taxes by the end of 2026. It is also necessary to stimulate demand and ask the government to decide that annual seminars, strategic planning sessions and camps of state institutions, ministries, state capital companies and other regional authorities should be held in Latgale as a priority or even a mandatory quota, with the state subsidizing local businesses through the purchase of services.

Local entrepreneurs are also asking for targeted subsidies for working capital, similar to the compensation mechanism set up during Covid-19 or the energy crisis for those Latgale region companies whose turnover has fallen due to the security situation.

There is also a need for an internal and external market campaign coordinated by the Latvian Investment and Development Agency (LIAA), funded by LIAA and the state, which dispels myths and confirms that Latgale is a safe and welcoming destination.

"Latgale must not become an economic victim of psychological warfare and geopolitical tensions. We call on the Latvian government and the country's top officials to act in time to prevent the bankruptcy of companies, job losses and the collapse of economic activity in the Latvian border region," LTA said.

The LTA statement claims that Sigulda municipal council has imposed a ban on school groups from the county visiting Latgale. As Elina Garbovska, Head of the Communications Department of the Sigulda municipal council, explained to the LETA, Latgale is an important part of Latvia’s cultural and historical heritage, and the council has not imposed any general restrictions on trips to this region. However, out of concern for children’s safety, the municipality has urged educational institutions to individually assess the planned trips, taking into account the current situation, safety considerations, and recommendations from relevant authorities.

Decisions regarding the organization of field trips are made by the educational institutions themselves in cooperation with parents of the pupils, Garbovska emphasized.

As reported, in recent months, residents of Latgale and Vidzeme have received cell broadcast alerts, most likely related to drones involved in the Russia-Ukraine war landing or entering Latvian airspace. Such drones have also exploded on Latvian territory on several occasions, including on May 7 at an empty oil base in Rezekne.

So far, no people have been injured in such incidents, but the latest case in Rezekne led first to the fall of the defense minister and then of the entire government led by Evikas Silina (New Unity). Negotiations are currently underway to form a new government. Until it is confirmed, the cabinet led by Silina continues its work.