RIGA, Sept 22 (LETA) - Riga City Council has decided to postpone introduction of tourism tax in the Latvian capital for another year, which means that the tax on accommodation services will be charged starting January 1, 2023.

The city council's press service informed LETA that under the current wording of the regulations the tourism tax should be introduced on January 1, 2022, According to the plan, all tourist facilities will have to pay a tax at the amount of EUR 1 per person per night, but not more than EUR 10 if the person is staying longer in the Latvian capital. The tax would not be applied on children below the age of 12.

The decision to postpone the tax has been taken in order to make Riga a financially more attractive tourist destination and to not increase the costs of tourist accommodation establishments. 

The local government indicated that travel restrictions that have been impose in Latvia and elsewhere in the world have been seriously affecting the tourism sector and its revenue. 

In this situation, it is necessary to support the tourism industry's recovery from the Covid-19 crisis, the city council said. 

In the first half of 2021, hotel bed occupancy rate in Riga was 14.47 percent, which is one of the lowest figures on record and reached only 60 percent of the hotel bed occupancy rate recorded in the first half of 2020 and 28 percent of the figure for the first half of 2019.