Analytics, Latvia, Real Estate, Tourism

"It would not be reasonable to build new hotels at this time, because hotel occupancy rates have been decreasing," Zudovs said LETA.

"It shows very well that the number of tourists is decreasing, the hotel market is satiated, the competition is increasing. If state institutions do not support the development of the sector and do not allot extra funds for marketing activities, which should increase the number of travelers to Latvia, the situation in both the hotel business and the tourism sector overall may become critical," Zudovs warned.

For instance, Estonia, in a similar situation, allotted significant funds for the development of the tourism sector, Zudovs said.

Zudovs also said that prices could be corrected in the hotel business because "prices for services have increased, but not the quality of services".