Tourism Industry will Gradually Recover

What was the main purpose of the survey?

- The aim of the survey was to gather information about the representatives of the tourism industry - hotels, restaurants, agencies, other tourism service providers in Latvia, in order to identify the types of support from the government that were at that moment needed the most from the point of view of entrepreneurs. We also explored the needs of the companies operating with their headquarters in Latvia and branches abroad, as well as gathered information on how many companies had used the existing support measures.

Our conclusion is that there has never been such a dramatic situation in the tourism and hospitality sector in Latvia. The pandemic is a special case because it affects the whole world. On the other hand, if we look back at the economic crisis in 2008, we could observe that Latvian tourism companies and companies in general mobilized looking for alternative and new solutions to adapt to the economic conditions and social tensions of that time, to continue working and provide marketable services while giving up on everything that is unnecessary. The majority evaluated what could be done differently, what to give up, how to offer unprecedented services or services in a different package. The situation is similar during the pandemic: we see that tourism and leisure companies offer a variety of new solutions that would not otherwise have emerged. This season the biggest difficulties are and will be experienced by companies that have so far worked only in exports. At the same time, these companies have purposefully and for a long time worked to bring tourists from abroad. The success of export companies in coping with this zero season depends largely on their savings policy, since the work must continue to be able to continue the operation the next season.

But as a result of this situation, companies that are not able to compete also cease to exist - is this not a partly positive feature?

- We can consider this from two perspectives. On the one hand, yes, the strongest survives, but, on the other hand, there are many small businesses in tourism that do not have such large savings. The companies who had good income in previous years and who had not made investments have an advantage. Currently, a number of tourism companies do not have customers, but an information and support service must be provided, so human resources are needed in the companies. Fixed costs have not been cancelled either. We can claim that the strongest will survive, but it is unfortunate for small businesses that, due to financial circumstances, are no longer able to continue operating. For many small businesses, tourism is an additional occupation and an additional income, in these circumstances it is like support if the basic income comes from paid employment in another company or in agricultural rural tourism companies.

When do you think the tourism industry could experience a complete recovery?

- People will travel. Tourism has always existed. In the past, these were economic considerations, namely, to sell what was produced on one's own farm, to exchange goods, now people travel both for business and leisure. I will not say anything new, but first the local travel in Latvia and between the Baltic States will come to life. At the end of June (June 27-28), the Tourism Innovation Hackathon took place in Valmiera with the aim of attracting the Estonian market, and for those involved in the tourism sector it was an opportunity to find viable solutions. International tourism will be revived by business tourism - conferences, seminars, projects and similar events. It will take time, but the movement will return.

The news of the negative consequences of the pandemic in the tourism industry may influence young people's choice to study tourism. In your opinion, is it worth studying tourism at the moment?

- Definitely yes. This is a unique time to study tourism, because in times of crisis innovations, new products and services, ways to manage companies are emerging. If a young person is currently starting their studies, then after graduation in 3.5 years’ time, international tourism will work at full capacity and the labour force will be in demand. In addition, the tourism management programme is not just about hospitality services, the programme is very broad and also includes areas such as business management, product development, tourism destination management with an emphasis on new product development. The study programme includes marketing, cooperation aspects as well as sustainability. We look at how lifestyle affects the demand and supply of tourism, not to mention the organization of events that is part of tourism. Boating, hiking in nature trails and so on - it's all part of Vidzeme University of Applied Sciences tourism studies!

Why study at Vidzeme University of Applied Sciences?

- In this university, the tourism study programme is designed so that students go outdoors, organize experience hikes, visit tourism companies, test tourism products, it is not just a theory. Also in remote studies, observing security measures, students individually continued to go outdoors and explore objects, conduct research using remote technological opportunities.

What is the typical profile of a student who wants to study tourism? What are the signs that indicate - yes, tourism is for me?

-These are people who like to be on the move. They are attracted by a dynamic work environment. These young people are able to make quick decisions and assess the situation. Students generally fall into two categories. One part are distinct nature lovers and travellers in their hearts, the other part focus on tourism as a big business and understand that there is a lot of money in this industry on a global scale. "White-collar workers" also have a place in tourism, as there is a need to plan both budget and cash flow, and this is sometimes more difficult for nature lovers to understand. But when studying in one course, these students complement each other perfectly. The situation is similar concerning age differences in a course where one student has just finished the secondary school and the other has already developed their business. There is a wonderful synergy between the generations - the younger students get experiential stories from the older students, but the older students learn new IT tools and the ideas that have not yet been "cropped".

So the cloud has a silver lining?

- Definitely.

* The study has been developed following a call by professional associations in the tourism and hospitality industry.