Business and event tourism is one of the segments where the Latvian economy, international reputation and ability to position itself on the global stage are most closely intertwined.B Jānis Priede, Sales Director of Radisson Blu Latvija Conference & Spa Hotel, talks about how Latvia is perceived by international decision-makers, what challenges hinder growth and what role large conference hotels play in this process.
Increasing Latvia’s visibility
Business tourism in Latvia has strong foundations and significant growth potential, however, its full development requires a targeted and consistent marketing approach to positioning the destination in the international market. Priede points out that the potential of the industry in Latvia is enormous, but after the Covid-19 period, the industry has experienced stagnation and even a decline in some areas. One of the main reasons behind the slow recovery is insufficient visibility. “A portion of the international audience still does not have a clear understanding of what Latvia is and what it offers, so in practice it is often necessary to sell the destination before the product. These conversations often begin with an explanation of what Latvia is, what Riga is, how to get here, what the infrastructure is like and why it is worthwhile to hold an event here at all. There are still many potential clients, especially in Northern Europe, who have never been to Latvia,” says Priede. He adds that the private sector is already investing significant funds in going to foreign markets and talking about our country as a destination. However, without targeted investments from the state, there is a risk of focusing on individual success stories instead of creating stable demand every year.
International forums as a long-term investment
In this context, participation in global MICE (Meeting, Incentive, Conference, Exhibition) forums, such as IBTM World in Barcelona, where the world’s strongest industry players meet, is of particular importance. “We are one of the largest conference hotels in the Baltics, and if the state organises a national stand at one of the most important MICE forums in the world, in our opinion, industry leaders should also be there,” he comments.
Priede emphasises that the exhibition is both a tool for making new contacts and an opportunity to meet already known partners and understand how the industry market is changing – from demand dynamics to the nuances of procurement requirements. Priede says that there are a lot of participants at the exhibition, so success is determined by preparation – work with databases and creating meeting calendars.
At the same time, the results are usually not immediate. “Often, a contact turns into a real project within two or three years. In Barcelona, we met with people who are already looking at Riga as a venue for events in 2027 or 2028,” Priede explains. He emphasises that special attention is paid to the international association segment, as these are organisations that regularly hold large events in a different location every year: “This is a segment with very good potential for both Riga and our hotel.”
The security factor and the influence of geopolitics
In international negotiations, when it comes to organising events in Latvia, security and the geopolitical situation still seems to be a significant factor. The war waged by Russia in Ukraine directly affects how foreign companies and organisations perceive security throughout the region, and this often affects practical business decisions. Priede mentions cases when large international events have been suspended or cancelled even at a very late stage – just before contract signing. Often the interest has been serious, and even face-to-face visits have taken place, but the final decision rests with the company’s top management, where risk management logic and caution prevail. At the same time, Priede emphasises that this is a reality that the industry must reckon with: “We must continue to work, explain, invite and consistently show that Riga and Latvia are safe, professional and suitable destinations for international events, while also looking for customer and event segments in which decision-making is not so sensitive to the geopolitical situation in the region.”
What MICE means for the hotel and city
The performance indicators of the Radisson Blu Latvija Conference & Spa Hotel clearly show what the MICE segment means for both the hotel and the city as a whole. As Priede points out, last year the hotel’s total revenue reached approximately 25 million euros, more than seven million or around 30% of which came from the business and events segment. This includes both local and international events, though international delegations generate the widest economic benefit. This proportion is not accidental – it demonstrates a targeted focus on the conference and events segment. It is precisely such a consistent approach and stable demand that allows the MICE segment to serve not only as a significant source of revenue for the hotel, but also as one of the most important tools in strengthening the economic activity of the city and destination.
“A business tourist is a solvent client who makes a contribution to accommodation, premises, technical support, catering, transport and the city’s economy as a whole,” emphasises Priede.
Demand management and price dynamics
During large international events and major developments, the demand for hotel services in Riga increases, but this does not always automatically mean a sharp demand surge. Priede explains that many of these periods are already historically high occupancy dates, so the decisive benefit for hotels is often not occupancy, but an increase in average prices. The pricing policy is based on dynamic demand management, which is not an exceptional solution, but an industry standard. “The hotel industry has been working with dynamic prices for more than 20 years – just like in the aviation industry. The closer to the event and the higher the demand, the higher the price,” explains Priede, explaining that this is normal market logic.
Quality, capacity and the ability to provide large events
At the same time, in the MICE segment, the price factor never exists separately from quality. Priede explains that in a professional event environment, organisers evaluate the offer as a whole. “Price is always a factor, but our clients also choose us because of our professional teams, high-quality technical support and catering,” he points out. Another significant advantage is the “all in one place” principle – the ability to provide a large number of rooms and host the event in one complex, which significantly reduces logistical risks during large events.
This capacity is particularly evident when it comes to high-level projects, such as hosting the NATO Military Committee, which shows that MICE is not just about accommodation, but a full range of services – from security and technical infrastructure to precise process execution. Also during major sporting events, Priede notes, it is not only the occupancy rate that is decisive – during the basketball tournament period occupancy increased moderately, but it was the increase in the average price that became the main economic benefit, confirming how important it is for hotels to have the ability to convert quality and capacity into a sustainable result.
Investments, sustainability and development
Speaking of the hotel’s development, Priede emphasises that investments and sustainability are not separate topics, but rather closely interconnected elements in a unified development concept. One of the immediate plans is the renovation of the Spa centre, which is intended as an investment in both the guest experience and competitiveness of the overall offer. He emphasises that such improvements become a significant added value for guests who stay in Riga for a longer period or arrive before the event. Similarly, the hotel owners plan to begin the renovation of the conference centre at the end of this year, which logically complements its development and strengthens the hotel’s ability to host events of various sizes, providing more modern infrastructure and a more competitive offer in the business tourism segment.
At the same time, sustainability in the hotel is perceived not as a formal requirement, but as an integral part of development. “This approach is implemented both in certifications and daily processes – the hotel has a ‘Green Key’ certificate, initiatives have been implemented to save resources, reduce water consumption and reduce food waste, as well as to provide regular employee training on the principles of responsible business,” says Priede. He adds that sustainability is an increasingly specific requirement in procurement and customer decision-making. Practical solutions, such as a more flexible approach to the “chef’s choice” menu or the transition to reusable materials, are becoming an everyday standard, not an exceptional request.
About Radisson Blu Latvija Conference & Spa Hotel
Since 2010, SIA Hotel Latvija has been operating under the brand Radisson Blu Latvija Conference & Spa Hotel, which is part of the Radisson Hotel Group with 1,360 hotels in 95 countries worldwide. The owner of the hotel building Linstow Baltic is a leading real estate company in the Baltics, which develops and manages properties in various segments. Radisson Blu Latvija Conference & Spa Hotel is one of the largest and most experienced conference hotels in the Baltics, with capacity, infrastructure and a professional team that allows it to successfully compete on a European scale. The hotel regularly hosts high-level international events and plays a significant role in the development of Riga as a major business tourism destination.
