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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC
PROFILE
OF RIGA
2016
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
RIGA
THE ECONOMIC
Riga was founded in 1201. Despite various historical events, Riga
has always been one of the most recognisable places of trade,
culture and tourism in Europe. Already in the 13th century, when
Riga joined the Hanseatic League, commerce evolved in the city,
making Riga one of the main intermediates between the West and
the East. Until the First World War Riga was one of the main Russian
Empire’s port cities, as well as, important railway transport junction.
Despite war damages, Riga was able to hold strong and in 1920 the
city’s development was resumed as the capital city of the Republic
of Latvia.
OF RIGA
Currently Riga has 30 sister cities in five continents; and it is a great
support for the development of different areas. In addition, Riga, as
a city and as one of the country’s recognisable objects, regularly
participates in different kind of international projects and activities;
for example, in the Union of the Baltic Cities (UBC), in the network
of Europe’s largest cities EUROCITIES and others, whose aim is to
promote transnational development for sustainable, competitive and
territorially united region of the Baltic Sea.
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COORDINATES:
56°56′51″N 24°6′23″E
STATUS OF THE CITY:
Since 1201
AREA:
304,05 km2
POPULATION:
641 007 (January 2015)
POPULATION DENSITY:
2 109 per km2
NATIONAL CURRENCY:
Euro (EUR)
TIME ZONE:
GMT+2
MUNICIPAL PORTAL OF RIGA:
www.riga.lv, www.investriga.lv
Portal letonika.lv section Riga
PROFILE
2016
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
RIGA – THE CITY WITH AMBITIOUS
TARGETS
RIGA – UNIQUE CITY OF
OPPORTUNITIES FOR EVERYONE
The strongholds of Riga City development are citizens, economy and urban environment that determine the nature of our city, work and life style that is unique not only for
Latvia, but also in the scale of Baltic and Nordic countries.
The development of Riga is the dynamic process that requires the constant attention and
the ability to adapt to complex needs of citizens, entrepreneurs, as well as guest of the city.
The inhabitants of Riga are active, educated, with developed work culture, with knowledge of foreign languages and cultural characteristics of other countries, as well as active
consumers of culture. Riga is the education centre of Latvia, there are 77 000 students,
among those the number of foreigners is growing year by year; in this year it amounts to
7% of the total number of students.
Compared with other European cities, Riga has very wide parks and large water areas
taking up 44% territory of almost 304 square kilometres; that together with the broad
cultural offer provide unique recreation opportunities for residents and guests. Acknowledging this uniqueness, the municipality also pays special attention to green areas of the
city and to the reconstruction of parks, for example, in 2015 the reconstruction of several
parks nearby Riga centre has been completed arranging more than 20 ha large territory.
While the culture and the cultural heritage of the city is characterised by the recognition
of the city as art nouveau metropolitan, by the performances of the international theatre
festival „Golden Mask”, music events of the „Kremerata Baltica” and „Baltica”, as well as
various Latvian and foreign artists.
Thanks to skills of residents of Riga to use opportunities – those arising from urban
environment, the ones arising from their own knowledge, as well as from the qualitative
transport connections with foreign countries, by now the city has successfully developed
and will develop further. Riga has the largest port in the Baltic countries, as well as the
Riga International Airport is the largest airport in the Baltics, moreover in the study report
2014 of the Air Transport Research Society it is estimated as the most competitive in
terms of cost per passenger.
Residents of Riga work productively; it is shown by the fact that residents of Riga, who
make up 34% of the total Latvian population, produce 50% of all gross domestic product
of Latvia. The high efficiency also is indicated by the results of the research carried out
by the FDI Magazine confirming that Riga is the most effective city in Europe in terms of
business expenses. This characteristics of Riga is also appreciated by foreign investors
who are investing in Riga. Almost 80% of foreign investments in the stock capital of enterprises are concentrated particularly in our city.
I invite you to explore the city of Riga, its inhabitants and environment, and to participate in facilitation of its economic growth.
Nils Ušakovs
Chairman of the Riga City Council
It is a year since the Sustainable Development Strategy of Riga 2030 and the Riga Development Programme 2014 – 2020 were approved. These documents provide strategic
changes in the city development planning; the planning paradigm has been changed from
very liberal and fragmented planning to such where socially responsible development of
the sustainable, compact city is highlighted. There are clearly defined priority development
areas in Riga – the centre of the city, whose role is not questionable, the Science and Innovation Centre in Tornakalns, where the Faculty of Natural Science of the University of Latvia
has already been built, Skanste centre, where wide constructions for a residential and business development Ezerparks is planned, and where already is the new administrative centre
of the State Revenue Service, as well as the leisure and recreation centre in Mezaparks.
Having regard to the statements defined in the strategy and involving broadly entrepreneurs
and citizens, work on the elaboration of the new spatial plan has been carried out; and it is
expected to be finalised in 2017.
The municipality ensures not only the accessibility of infrastructure improvements by
continuing work on the development of the North crossing, but also participates in the
development processes of priority areas and develops public outdoor space. It is planned
to launch developing and improving surroundings of the Riga Central market, revitalisation
of Mukusalas promenade, as well as developing the new public transport infrastructure in
Skanste surrounding area aimed at establishing the new business district, and thereby also
the strengthening business activities.
Innovative, open and exportable economy is one of the long-term development objectives of the city and ability of Riga entrepreneurs to adapt to circumstances indicate that this
objective will be achieved. Despite economic problems of the neighbouring countries due
to sanctions of the European Union and Russia, entrepreneurs of Riga tourism sector have
managed to overcome difficulties and to find new opportunities for development, that is indicated by, for example, the significant increase of the total number of tourists by almost 8%
in the second quarter of 2015, although at the same time the number of Russian tourists
has dropped by 35%. This information and the results obtained in the research point to the
fact that in Riga tourism is among other internationally competitive sectors of the economy
– information and communication technologies, transport and storage, metalworking, wood
production, electronic products, food and beverage production, as well as construction and
related services thereof. Acknowledging the importance of business, the municipality as last
years will continue to promote various business initiatives. With the help of this publication
I invite you to get to know the economic performance of the city, as well as to work and to
rest in Riga.
Dzintars Balodis
Acting director of the City Development Department
of the Riga City Council
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
TABLE OF CONTENTS
1. 1. OUTLINE OF THE URBAN ENVIRONMENT........................................... 7
1.1. General Information......................................................................... 8
1.1.1. Geographic Location........................................................... 8
1.1.2. Climate................................................................................ 9
1.1.3. Natural Landscapes and Green Area................................... 9
1.1.4. Water Bodies....................................................................... 9
1.2. Population...................................................................................... 10
1.2.1. Population of Riga.............................................................. 10
1.2.2. Ethnic Groups.................................................................... 11
1.2.3. Education........................................................................... 11
1.2.4. Culture............................................................................... 12
1.3. Infrastructure.................................................................................. 13
1.3.1. Residential Infrastructure.................................................... 13
1.3.2. Transport Infrastructure....................................................... 15
1.3.3. Engineering Infrastructure................................................... 19
1.3.4. Information and Communication Technology Infrastructure... 21
2. ECONOMIC COMPETITIVENESS OF RIGA............................................... 25
2.1. Key Economic Indicators................................................................ 26
2.2. Economic Activity of Population..................................................... 28
2.3. Sectorial Structure of the Economy and Priority Sectors................. 29
2.4. Transport and Logistics.................................................................. 32
2.4.1. Freeport of Riga.................................................................. 33
2.4.2. Riga International Airport.................................................... 37
2.4.3. Latvian Railway................................................................... 38
2.4.4. Road freight transport......................................................... 41
2.5. Science and technology................................................................. 42
2.6. Tourism.......................................................................................... 42
2.7. Investing in Riga............................................................................. 45
2.8. Creative industries in Riga.............................................................. 47
3. BUSINESS AND INVESTMENT ENVIRONMENT........................................ 49
3.1. Legal Framework........................................................................... 50
3.2. Business Start-up.......................................................................... 51
3.3. Real Estate..................................................................................... 52
3.4. Business Support Provided by the Municipality.............................. 54
3.5. Business Support Institutions......................................................... 57
3.6. Opportunities for Mutual Business Cooperation ............................. 59
3.7. International cooperation opportunities........................................... 62
Useful information.......................................................................................... 65
1.
OUTLINE OF THE
URBAN ENVIRONMENT
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
1.OUTLINE OF THE URBAN
ENVIRONMENT
1.1.2. Climate
1.1. GENERAL INFORMATION
Latvija
1.1.1. Geographic Location
Riga is the capital city of the Republic of Latvia; and it is located in the central part of Latvia on the south coast of the Gulf
of Riga, on both riversides of Daugava. Geographically the city
is located in the centre of the Baltic region countries.
ZIEMELU
district
KURZEMES
district
77 km²
CENTRS
district
79 km²
ZEMGALE
suburb
41 km²
3 km²
VIDZEME
suburb
58 km²
LATGALE
suburb
46 km²
As Riga is located in
lowland of the central
part of Latvia, there
are only a few hills in
the city; the highest
is Dzeguzkalns (26 m
above sea level).
The total area of the
city is 304 km2; and
it is divided into six
districts that, in turn,
are sub-divided into 58
neighbourhoods.
The planned usage of territory of Riga2
29,9 %
23,0 %
The climate of Riga is mainly determined by the moderate latitude air masses of the
Atlantic Ocean connected with the active cyclonic action; therefore, it is often cloudy
and with precipitations in the city. Approximately 220 days a year air masses of the
sea dominate in Riga. The climate is influenced not only by the closeness of the Gulf
of Riga, but also by closeness of other large water bodies (Daugava, Kisezers), as well
as by construction territories, location of business objects, area of squares and parks.
The maximum of the sun angle is on July 22nd (56.4° above horizon), while the
lowest on December 22nd (9.6° above horizon). As throughout the year the cloudiness
is increased in the city, the length of sunlight in summer is 54-57 % and in winter – only
14-25 % of the maximum possible. Due to the predominant sea air masses, the level
of precipitations in the city is high – approximately 700 mm a year. 72 % of the total
annual precipitations are rain, 16 % – snow, and the rest – mixed type precipitations.
In year 2014 the average air temperature in Riga has been 8.6° C (the norm
– 6.9° C).3 However, due to air pollution the average temperature usually is higher than
the actual.4
1.1.3. Natural Landscapes and Green Area
The environmental accessibility in Riga is characterised by 39 % natural landscapes,
16 % of them are water bodies and 23 % are green areas; therefore, Riga, rightly so,
can be called a green city.5 The total green area of the city is 85.09 km2, with 29
parks, 24 graveyards, 10 larger forest areas and forest parks, and 66 squares. The
oldest park is Strazdmuiza in Jugla, mentioned in historical annals already in early 16th
century. Relatively many parks and squares are located in the city centre (including
major venues for cultural events – Esplanade, Kronvalda park, Vermanes garden,
AB Dambis, Bastejkalns) – they are popular not only among locals, but also among
visitors.
Almost in every Riga’s district there is at least one green area – that provides
relatively good air quality and considerably improves the quality of urban environment.
Furthermore, in every residential area in the city there are wide yards for short time
relaxation and nearby forest parks and forests for longer relax time.
17,6%
14,9 %
1.1.4. Water Bodies
5,5%
2,9 %
residential
area
91,03 km2
2
green
area
85,09 km2
water
bodies
47,67 km2
roads
(streets),
within the
borders of
red lines
45,19 km2
port
territory
16,66 km2
The Spatial Plan of Riga for 2006 – 2018 with amendments. Explanatory memorandum.
technical
construction
territories
8,65 km2
2,3 %
industrial
area
6,9 km2
0,9 %
airfield
territory
2,86 km2
The geographical location of the city on coastal lowland of the region of Daugava
creek determines its richness with water bodies – Latvia’s largest river Daugava runs
through the city, as well as many smaller rivers. In addition, Riga has nine lakes and
ponds. In total, the “blue” area of the city is 17.6 % or 5 400 hectares that naturally fits
and helps to create landscapes and provides citizens of Riga with additional areas for
relaxation.
The Central Statistics Bureau. Climate in Latvia. Available at: www.csb.gov.lv
The Environment Report on Strategic Assessment of Impact on Environment for Riga Development Plan 2006 - 2018
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The Assessment of Strategic Impact on Environment. Environment Report. LLC Grupa 93. 2014
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4
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THE ECONOMIC PROFILE OF RIGA 2016
The largest lake in Riga is Kisezers – it is located in the northeast part of the
city and its area is 17.3 km2. The second largest lake is the lake of Jugla (5.7
km2). Water surrounds also the old city – part of Daugava and 3.2 km long
city canal runs around it. The majority of water bodies are located on the right
coast of Daugava, while the largest water body on the left shore, Pardaugava,
is between Tornakalns and Agenskalns – artificially created Mara pond.
1.2.2. Ethnic Groups
1.2.POPULATION
Proportion of different nationality groups in Riga 2015, %
Riga is a multinational city. During the recent years the ethnic composition of
the population has not changed dramatically. The relatively largest proportion
has Latvians (43 %) and Russians (39 %), still the proportion of other nationalities
is also considerable – 18 % – Belarusians, Ukrainians, Poles and others.10
1.2.1. Population of Riga
LV
RU
According to data on population, Riga is the largest city in the Baltic States
and the third largest (behind Saint Petersburg and Stockholm) in the region of
the Baltic Sea. On January 2015, population in Riga was 698 086 (311 493
men and 386 593 women), that is 32 % of the total population of Latvia.6 In
the last three years the number of new-borns in Riga has also increased.7
3 293
6 296
3 025
6 739
7 040
7 514
Men
3 257
3 503
3 639
47 727
28 442
3 496
3 271
3 482
3 537
3 875
2010
2011
2012
2013
2014
Latvians
55 166
39 740
43 %
15–24
45 169
28 295
50–64
65+
boys
Just like in the largest cities of Europe, the level of demographic load in
Riga is higher in the group above working-age. The data from January 1st
2015 indicates that 92 896 people till the working-age, 398 227 people in the
working-age, and 149 884 people above the working-age live in Riga.9
When comparing the administrative-territorial units by population, it can be
concluded that the majority of population lives in Latgale suburb (185 365
people) and Vidzeme suburb (176 284 people), while the least populated is
Centrs district (23 786 people).
The Office of Citizenship and Migration Affairs. Number of population of Latvia in municipalities. Available at: http://www.pmlp.gov.lv
The Central Statistical Bureau. Live births by gender. Available at: www.csb.gov.lv
The Central Statistical Bureau. Age structure of men and women. Available at: www.csb.gov.lv
9
The Office of Citizenship and Migration Affairs. Working age and gender structure in municipalities. Available at: http://www.pmlp.gov.lv
Russians
39 %
Belarusians
4%
Ukrainians
4%
Poles
2%
Other nationalities,
including non-mentioned
nationalities
1.2.3. Education
Women
0–14
25–49
112 114
girls
Age group
(years)
.....
UA
PL
The population of Riga Region by age
groups to January 1st 20158
Number of new-borns in Riga
6 789
BY
121 534
76 035
86 785
The level of citizens’ education is one of the most important preconditions
for the development of the city; therefore, also in Riga the raising education
level is facilitated ensuring general education and other kinds of additional –
including higher, interest-related and vocational-oriented – education. In order
to achieve long-term goals, the Riga City Development Programme 2014 2020 has determined qualitative and modern education as one of the main
priority directions.11
There are 150 pre-school institutions in Riga, 72 of them with Latvian
teaching language, 47 – with Russian language, and 31 with both Latvian
and Russian teaching language. In Riga currently approximately 26 700 young
inhabitants of the city attend pre-school institutions.
In the city there are 119 general education institutions, five of them are
primary schools, 24 – elementary schools and 90 – secondary schools. From
all the schools, 12 are special schools, 10 – boarding schools and 5 – evening
schools. In total approximately 65 000 students study in these schools.
There are also several interest-related and vocational-oriented educational
institutions:
• eleven sports-oriented educational institutions;
• nine cultural education institutions; on average 4 000 students study per
year therein;
• thirteen interest-related education institutions.
6
7
8
8%
10
The Office of Citizenship and Migration Affairs. Number of population in municipalities by nationalities.
Available at: http://www.pmlp.gov.lv
11
The Riga City Development Programme 2014 - 2020
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THE ECONOMIC PROFILE OF RIGA 2016
Riga is the capital city of higher education in Latvia – here are 46 universities
and colleges, where it is possible to study different kinds and fields of higher and
vocational education, and more than 77 000 students (more than 80 % of all the
higher education students in Latvia) study there.12 One of the priority directions
defined in the planning documents of the Ministry of Education and Science is
the internationalisation of higher education and science and the increase of international competitiveness, including the promotion of its exportability, thus facilitating the competitiveness and quality of higher education – holding a certain
place in the global education market and contributing to the national economy.
Over the past four years the number of foreign students in Latvia has increased
two-and-a-half times, at the beginning of 2014/2015 academic year from all
universities students 7% are foreign students. The Ministry of Education and
Science aims to increase the number of foreign students studying in Latvia to at
least 10 % by 2020.13 Universities in Riga having the highest number of foreign
students are the University of Latvia, the Riga Technical University and the Riga
Stradins University.14
1.2.4. Culture
Riga, as the capital city of the Republic of Latvia, has always maintained the
city’s and the whole country’s tangible and intangible cultural heritage. There are
many architectural monuments of national importance in the city; and it is also
a venue for cultural events of regional, national and international significance. In
year 2014 Riga was the European Capital of Culture, giving a chance for the city
to promote its cultural life and developments within the European Union.
In Riga there are three independent culture centres, the association of culture institutions, the Central Library of Riga, the professional brass band Riga, and several
music and sport educational institutions, etc. Besides, there are different cultural
institutions of national importance in the city – JSC Rigas Kinostudija (Riga Film Studio), the state-owned LLC Latvijas Nacionala Opera (Latvian National Opera), the
state-owned LLC Rigas Cirks (Riga Circus), six theatres, and others.
In year 2014 the new building of National Library of Latvia, also called “Gaismas
pils” (Castle of Light) was given for exploitation. In the Latvian National Library building the first half of year 2015 passed in the ‘sign’ of the Presidency of the Council of
the European Union (LPESP), when the Castle of Light was central venue for LPESP
events, hosting about 200 events and welcoming high level international officials. Its
total area is 40 455 m2 and it has enough space for 1 000 readers. In the library it is
possible not only to store 6 million printed works and to freely access 350 000 editions, but also to use 10 different rooms for group activities, individual work cabins,
the Music Room, the Room of Tales, language classes, the Latvian Book-printing
History Museum, as well as the conference and concert hall with 462 seats and seminar rooms with the total capacity of 400 seats.19 It is one of the most outstanding
projects of the 21st century in Latvia, creating the opportunity for the library to become a modern and creative world-level cultural, educational and scientific centre.20
In 2015 culture-related artistic groups in Riga 21
Once every five years the National Song and Dance Celebration Festival
takes place in Riga, every three years – the international festival of folklore Baltica. Every year such events like the Riga City Celebration, the Lacplesis Day,
the Light Festival Staro Riga, the Latvian Independence Day, the Music and
Arts Festival Bildes, the National Music Festival Rigas ritmi, the Baltic Ballet
Festival, the Festival of Theatre Zelta Maska in Latvia and other events take
place in Riga.15 Since 2013 Riga is awarded as the Elegantly Delicious Capital
City, highlighting the heritage and richness of Latvian cuisine.
According to data of the State Inspection for Heritage Protection, there are
1 711 cultural monuments in Riga, 786 of them are of national importance and
925 are of local importance.16
The historic centre of Riga (438.3 hectares or 1.43 % of the total area) was
included in the UNESCO World Heritage List.17 In the centre of Riga 40 % of all
the buildings are Art Nouveau buildings; and it is much more than in any other
European city.18
The overview of the educational institutions in 2013/2014 school year. The Education, Culture and Sports Department of the Riga
City Council. Available at: www.iksd.riga.lv
13
The Ministry of Foreign Affairs of the Republic of Latvia: www.mfa.gov.lv
14
The overview of the Latvian higher education in 2014. Available at: www.izm.gov.lv
15
The Education, Culture and Sports Department of the Riga City Council: www.iksd.riga.lv
16
The State Inspection for Heritage Protection: www.mantojums.lv
17
The Riga Historical Centre Preservation and Protection Act.
18
The Tourism Development Agency: www.tava.gov.lv
12
18
amateur theatres
4
photo and
cinema studios
7
lute-players
groups
30
applied arts
studios
89
17
choirs
39
vocal groups
54
dance groups
8
orchestras,
instrumental
groups and
chapels
fine arts studios
18
folklore groups
1.3.INFRASTRUCTURE
1.3.1. Residential Infrastructure
The multi-apartment residential buildings, where live a little more than 600 000
inhabitants, and private houses, where live approximately 33 000 inhabitants are the
basis of residential fund in Riga. The city’s residential fund consists of state, municipally and privately owned houses built in different time periods.
In the new building of National Library of Latvia. Available at: www.lnb.lv
The National Library of Latvia: www.gaismaspils.lv
The Department of Education, Culture and Sports of the Riga City Council. Database of artistic groups.
Available at: www.kultura.riga.lv
19
20
21
13
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THE ECONOMIC PROFILE OF RIGA 2016
1.3.2. Transport Infrastructure
The majority of buildings were built during the Soviet times – now there live 72
% of Riga’s inhabitants. Many buildings were also built before the war and during
the First Independence of Latvia, but the third construction boom started in 2006
that slowed down with the beginning of economic crisis.
Advantageous geographical location of the city has facilitated its development – Riga has the advantage to use all types of transport systems. Riga is the
key junction of domestic and international passenger and cargo transportation
of all country – there are roads, the railway, the port and the aviation in the city.
With the development of all kinds of transportation systems it is possible to
support other sectors – trade, logistics, energy, tourism, as well as enhance and
promote the cross-border relationships. Riga has always been the crossroads
between the West and the East.
According to the study on housing affordability index done by the SEB Bank,
in the first quarter of 2015 this index has decreased.22 According to the real estate market report provided by the real estate agents company “Latio”, the number
of all types of transactions related to real estate in Riga in the first quarter of 2015,
in comparison to the same time period in 2014, has decreased by 4 %. The number of real estate purchase transactions in Riga increased by 4.7 %, including
purchase of flats – by 3.8 % and mansions – by 11.7 %. During this period there
have been more than 5 800 real estate purchase transactions in Riga, almost 90
% of them were flat purchases. Within the total real estate purchase transactions,
number of mansion purchases has tendency to increase.23
In order to reach the long-term goals, the Riga City Development Programme
2014 - 2020 has stated the balanced traffic infrastructure and its organisation
as one of the main priority directions.27
Road Transport
Riga and the Riga region is the key international and domestic passenger and
cargo transportation junction in Latvia. Road network in the Riga region is relatively dense and it ensures radial link of Riga with rest of the territory of Latvia.
According to data of the Central Statistical Bureau, the construction of buildings continues to recover, as evidenced by increase of number of newly built
residential buildings and the number of buildings given for exploitation, and also
the number of issued construction permits.
The number of newly built
residential buildings in Riga
(thousands, m2 total area)24
New
constructions,
in total
128.7
132,1
Number of construction
permits issued in Riga25
One flat buildings (without
mansions, summer houses)
206
193
161
incl.
one flat
buildings
72,9
Total
New
constructions
63
58
31
15
16
2014
2011
2012
90
78,9
2011
Two and more flat buildings
2012
2013
141
142
110
87
In Latvia all the major roads and transport corridors cross the capital city:
• in the North – South direction, it is ensured by the first transport corridor
in Europe “Via Baltica” and it connects European cities: Helsinki – Tallinn – Riga
– Kaunas – Warsaw and Riga – Kaliningrad – Gdansk;
• in the West – East direction, it is ensured by the European route E22 that
begins in the UK and extends till the central part of Russia.
41
24
2013
12
2014
48.4
Mansions, summer houses
21,4
2011
16,1
2012
2
10,8
2013
Shared houses by
different social groups
2014
2011
2012
4
4
1
2013 2014
1
2011
2012
2013
At the end of 2013 the residential fund in Riga for one permanent resident was
29,7 m2; that is by 1,7 m2 more than in 2012.26
24
25
26
22
23
6
The Housing Affordability Index. SEB Bank. June 2015. Available at: www.seb.lv
Real Estate Market Report. Riga. Latio. I Quarter 2015. Available at: www.latio.lv
The Central Statistical Bureau. Construction of new residential buildings. Available at: www.csb.gov.lv
The Central Statistical Bureau. Number of building permits issued for building construction. Available at: www.csb.gov.lv
The Riga City Council City Development Department. Strategies for Monitoring System: Residential fund average per capita in Riga (m²).
Available at: www.sus.lv
2014
According to data of the Central Statistical Bureau the total length of roads in
Riga in 2014 was 1 182 km; that is 3 km more than it was in 2013.28 The busiest
traffic in the city is the entrances in Riga from Jurmala and from Sigulda sides.29
In order to clear the city centre from major transportation transits and traffic
jams, the Southern Bridge was opened in 2008. On its both shores, trunk roads
with transport junctions are built ensuring the operation of the bridge. In 2011
Slavu transport junction became publically accessible. In case of Latvia, it is unprecedentedly very large size and technically complicated, with trestle of three
stories. The same year Austrumu transport junction also was opened. In 2013
the transport junction on the left shore in direction of Zemgale was finished, thus
concluding all the trunk roads required for complete exploitation of the Southern
Bridge. As a result, all the transportation transits can freely bypass the city centre; moreover, the system of the new trunk roads creates an exit to transport
corridor of national importance road “Via Baltica”.30
Riga also provides the efficient and comfortable public transportation system
for citizens and visitors of the city.
30
27
28
29
The Riga City Development program 2014 - 2020
The Central Statistical Bureau. Length of Municipal Roads. Available at: www.csb.gov.lv
The Latvian State Roads. The average daily traffic in 2014 on the country’s major roads near Riga. Available at: www.lvceli.lv
The Riga City Sustainable Energy Action Plan for Smart Cities 2014 - 2020
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
The responsible company is the municipal LLC Rigas Satiksme (Traffic of Riga)
providing the city with trams (218 trams in 9 different routes), trolley-buses (264
trolley-buses in 19 different routes) and buses (432 buses in 53 day routes and 9
night routes), as well as parking lots (4 996).31
Public transportation units of Rigas Satiksme
Trams
218
Trolley-buses
264
Buses
432
Taxi cars
2 026
LLC Rigas Satiksme ensures transportation of passengers not only in the administrative territory of Riga, but also in close municipalities and parish – municipality
of Babite, Marupe, Garkalne, Kekava and parish of Olaine.
Besides, several companies operate in the city providing taxi services (2 026
taxi cars).32
In 2014 150.5 million passengers were transported in public transport that is by
0.3% more than in previous year.33
LLC Rigas Satiksme closely follows passengers’ expectations and has improved its range of services. Two new bus routes – No.56 and No.57 routes have been
launched, bus route No.4 has been adjusted. There have been changes made to
the time schedules for buses No.97, trams No.17 and trolley-buses No.42, as well
as mutual coordination ensured between routes of tram No.6, trolley-bus No.9 and
bus No.30. In 2014 within concluded supply contracts 25 new trolley-buses and
35 new buses have been received.34
In Riga, as in the capital city of Latvia, a great importance is given to ensure
agglomeration with the rest territory of Latvia, as well as for transportation of international passengers; that is provided by JSC Riga International Coach Terminal,
cooperating with 30 passenger transportation companies. 14 companies ensure
domestic transportations, two of those ensure both domestic and international
transportations, and 19 – international transportations, nine of those are foreign
companies. The JSC Riga International Coach Terminal cooperates also with three
tourism agencies that provide tickets for international routes. In ticket offices of 33
couch terminals of Latvia, including JSC Riga International Coach Terminal, ticket
sale is ensured by the ticket sales programme „Baltic Lines”. In 2014 Riga International Coach Terminal on average served 420 routes daily, of those 350 are domestic and 70 are international routes. In year 2014 JSC Riga International Coach
Terminal served 2,240 million passengers that is by 5.07% less than in 2013.35
LLC Rigas Satiksme. Management Review of the integrated management system performance. 2014 annual report and future
challenges. Available at: www.rigassatiksme.lv
Taxi operators in the administrative territory of Riga. Situation on 4 August 2014. Available at: www.rdsd.lv
33
LLC Rigas Satiksme. Management Review of the integrated management system performance. 2014 annual report and future
challenges. Available at: www.rigassatiksme.lv
34
LLC Rigas Satiksme. Management Review of the integrated management system performance. 2014 annual report and future
challenges. Available at: www.rigassatiksme.lv
35
JSC Riga International Coach Terminal. 2014 annual report. Available at: www.autoosta.lv
31
32
Railway Transport
Railway transport is one of the most advantageous means of land
transportation from security, as well as from ecological aspect. From all the
domestic land transportations, railway cargo transportation is approximately
52 % and passenger transportation in the Riga region – 30 %. According
to the railway cargo transportation structure, 85 % are transit operations,
mainly from Russia and Belorussia to Latvian ports (the Eastern – Western
transit corridor); inland transportation is about 5 %; that can be explained with
relatively short transportation distances. Almost all railway routes in Latvia go
through Riga.
Railway of Latvia is included in one of the five transnational transport corridors
set by the European Union – the Northern Transport Corridor connecting EU
northern part with Norway and eastern part with Belorussia and Russia.
The existing railway network in the Baltic States was built according to
Russian standards, but in Western Europe railway tracks differ in width,
therefore, railway of Latvia cannot be connected directly with railway network
of Poland and Germany and currently on Lithuanian boarder width of wagon
wheels is being changed. However, the implementation of the project Rail
Baltica is in the process, aiming to re-establish direct link between the railway
network of the Baltic States and the European railway network; and to promote
regional integration by connecting metropolis of Tallinn – Riga – Kaunas –
Warsaw – Berlin.
Following companies operate in the Latvian railway sector:
•JSC Latvian Railway, manages the public railway infrastructure;
•JSC Pasazieru Vilciens (Passengers’ Train);
• several organisations and sector companies.
Cargo transportation in Latvia is ensured by JSC Latvian Railway daughtercompany LLC LDZ Cargo and by two private capital companies – JSC Baltijas
Ekspresis and JSC Baltijas Tranzita Serviss. Private companies transport on
average 20 % of the total amount; it is one of the highest ratios in Europe.
JSC Pasazieru Vilciens is the domestic public railway transportation provider,
but LLC LDZ Cargo, cooperating with LLC L-Ekspresis, ensures international
passengers’ transportation to Russia and Belorussia.
Water Transport
Water transport in Riga is ensured by the Freeport of Riga that plays an
important role in the global and regional cargo transport chain, as well as in the
passengers’ transportation network in the region of the Baltic Sea.
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
The port is a middle point of main transit roads and the eastern – western
transport corridor, as it is included in such corridors:
• Trans-Siberian highway;
• North – South road through Minsk;
• Daugava – Dnieper waterway project.
Moreover, the European Union has stated that Riga is a part of Trans European corridor I (TEK I) connecting Helsinki with Tallinn, Riga, Kaunas and Warsaw.
Key facts and numbers of the Freeport of Riga:
• The Freeport of Riga is located along both banks of the river Daugava and
it is 15 km long;
• Total area – 6 348 ha;
• The Freeport of Riga is open for sailing throughout the whole year;
• Status of free economic zone;
• Total length of piers – 18.2 km;
• Maximum depth at piers – 14.5 m;
• Warehouse area – 370 979 m2;
• Cargo storage area capacity – 1 926 362 m2;
• Cargo handling capacity of port terminals is 58.2 million tons/year;
• Freezer facility capacity – 25 500 t;
• Reservoir capacity – 665 063 m3;
• The largest port in the Baltic States in 2014 by cargo turnover – 41.1
million tons;
• Ship visits in 2014 – 3 797;
• Up to 80 % of cargo turnover in the Freeport of Riga consist of transit
cargos sent to or received from the Commonwealth of Independent States
(CIS);
• 35 stevedoring companies and 28 shipping agents operate in the Freeport
of Riga;
• The main cargos are containers, different metals, wood, coal, fertilizers,
chemical cargos and petroleum products.36
Air Transport
Large amount of passenger transportation between Latvia and other world
countries ensures support for economic growth not only for the city, but also for
the entire country. Air transport has a great influence on the national economy
in general and on the increase of its gross domestic product, creating preconditions and promoting development of other sectors (especially tourism), as well
as contributing to increase of the level of employment. In Latvia air transport
is provided by JSC Riga International Airport, JSC Latvian Air Traffic and air
operators, the most influential of them is the national operator JSC Air Baltic
Corporation.
During the last seven years the number of JSC Riga International Airport
passengers has increased almost four times and it has become a confident leader among airports of the Baltic States, as well as one of the fastest-developing
airports in the European Union.37
The Authority of Freeport of Riga. Available at: www.rop.lv
The Ministry of Transport of the Republic of Latvia. Aviation Specific characteristics. Available at: www.sam.gov.lv
36
37
In 2014 JSC Riga International Airport served 4 813 959 passengers. The
amount of transfer and transit passengers was 29 % of total number of passengers, whose popular destinations were Tallinn, Vilnius, Helsinki, Moscow and
Stockholm. Comparing to the previous year, amount of cargo transportation
has slightly decreased making 32 984 tons. In the last year serving almost
66 thousand air crafts and 33 thousand tones cargo, JSC Riga International
Airport is the largest air transport junction in the Baltic States. 46% of all air
passengers of this region are transported through Riga.38
Pipeline Transport
Currently in Latvia there is a trunk of gas pipeline network connecting the
system of gas pipelines of Latvia with the gas pipelines in Russia, Estonia and
Lithuania. In 2014 in total 4.2 billion m3 of natural gas were transported via
those pipelines.39 There are two gas pipelines that cross the city and ensure it
with natural gas:
• Since 1962 Dashava (Ukraine) – Riga;
• Since 1972 Torzhok (Russia) – Riga.
1.3.3. Engineering Infrastructure
Modern urban life is unthinkable without such obvious things as water, heat,
electricity, light and sewerage. Connections to centralized supply systems and
the quality thereof are essential for comfortable life.
Water and Sewerage System
Water supply and sewerage system in the city is provided by LLC Rigas
Udens (Water of Riga); the company offers drinking water of good quality and
collects, drains and cleans domestic wastewater. Drinking water in Riga is obtained from six important city’s water sources, using both surface and ground
water sources. The majority of inhabitants living on the left bank of Daugava
receive water from Daugava river basin in the water supply zone of the Riga
Hydroelectric Power Plant (Riga HES), while inhabitants of the right bank of
Daugava – from the ground water source Baltezers-Zakumuiza. Water treatment station Daugava can produce up to 210 thousand m3 in a day and
Baltezers-Zakumuiza – up to 85 thousand m3 of drinking water. Quality of
the produced drinking water and safety of water treatment stations meet the
European standards.40
In the beginning of 2015 the total length of water supply networks in Riga
reached 1 423,1 km, including network inlets of 332 km in length. In order to
provide safe and qualitative water supply, LLC Rigas Udens every year changes or reconstructs pipelines, hydrants and bolts in the whole territory of Riga.
The total length of sewerage system network in Riga at the beginning of
2015 reached 1 141,8 km, including street sewer outlets of 153 km in length.
JSC Riga International Airport. Annual yearbook. Available at: www.riga-airport.com
The Central Statistical Bureau. Transport by pipeline. Available at: www.csb.gov.lv
40
LLC Rigas Udens. Available at: www.rigasudens.lv
38
39
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
LLC Rigas Udens every year increases the power of sewerage system network
and its pumps; thus, ensuring safe collection of wastewater and drainage to
the biological wastewater treatment plant Daugavgriva.41
to repair and to improve the operational efficiency of the external lighting networks
of city roads (streets), parks and other public objects, as well as reconstruction of
its technical basis.
Heat Supply
The JSC Rigas Siltums (Heat of Riga) is the main supplier of heating in Riga.
It ensures production, distribution and sales of heating, as well as provides
maintenance services of the internal heat supply systems in the buildings.
In 2013 the agency provided external lighting on roads for 3 912 hours a year,
managed the operation of 357 traffic lights, including maintenance of 88 regulated
pedestrian crossings, and ensured other not less important services.44
The main heat producers in Riga are the cogeneration stations owned by
JSC Latvenergo. JSC Rigas Siltums purchases from these stations approximately 70 % of all the necessary heat. About 0.05 % of heat is bought from
other companies and the rest is produced in JSC Rigas Siltums heat sources:
five heating stations, as well as several tens of small and medium size boiler-houses. Mainly gas (97 %) is used as fuel; it is also possible to use heating
oil, marked fuel and woodchips.
76 % of all heat necessary for Riga is transmitted and distributed by JSC
Rigas Siltums. 77 % of all the produced and supplied heat is used for household heating and boiling hot water.42 The total length of the city’s heating circuit
is about 900 km.
Power Supply
Similarly like with heat supply, power supply is also ensured by the leading
energy company in Latvia – JSC Latvenergo. The company produces 90 % of
all the electro energy produced in Latvia; the majority is produced using water
as energy resource.43 In accordance with the Electricity Market Law from 1st
January 2015 the electricity market is fully open, allowing the natural and legal
persons to buy electricity from suppliers who are competing with each other.
Apart the largest supplier JSC „Latvenergo”, power supply for private persons
is ensured by LLC „Baltkom TV”, LLC „WIN Baltic”, LLC „220 Energy”, and
for legal persons also - LLC „Enefit”, LLC „Baltic Energy Services”, LLC „Baltic
Energy Services” etc.
Gas Supply
The supply of natural gas in the Latvian market is ensured by JSC Latvijas
Gaze (Gas of Latvia) that, in accordance with licenses issued by the Public Utilities Commission, transfers, distributes, maintains and sells natural gas. From
the gas used in Latvia, approximately 65 % is consumed in the Riga region.
Lightning Network System
Already since 1947 the lighting system of the city is managed by the Riga Municipality Agency Rigas Gaisma (Light of Riga), whose main task is to maintain,
44
41
42
43
LLC Rigas Udens. Available at: www.rigasudens.lv
JSC Rigas Siltums. Available at: www.rs.lv
JSC Latvenergo. Available at: www.latvenergo.lv
The Riga Municipality Agency Riga Light 2014 Public Report. Available at: www.rigasgaisma.lv
1.3.4. Information and Communication Technology Infrastructure
Information and communication technology is one of the key elements for the
growth of economic competitiveness and national economy. The rapid advancement of technologies in the whole world determines that the long-term growth
cannot take place without the development and extensive use of information and
communication technologies.45 Nowadays, almost in every household and business company there is a necessity for information and communication technology
(hereinafter – ICT) infrastructure – it improves the quality of life, provides easy access to different kinds of public services, promotes development of entrepreneurship and effective work of the municipality, enhances the studying process and
intercommunication of inhabitants.
ICT is one of the leading economic sectors in Riga and Latvia that stimulates
the development of all national economy. In the recent years, the development and
growth of ICT sector, as well as increase of its export volume is observed. Within
the sector, more and more new companies have been established, mostly in computer programming and consultation field. In recent years in ICT sector the amount
of paid taxes has increased; and the service field is rapidly developing.46
The Riga municipality is a friendly and suitable city for ICT sector, actively participating, supporting, using and promoting different activities and services provided
by this sector. For example, electronic travel cards are used in the public transportation in Riga, and collections of the museums of Riga can be explored on mobile
applications. Since 2014 in the catalogue of the National Museum of Latvia anyone
who is interested from a distance can explore collections and search for specific
expositions and items located in the stocks of museums. While, in the education
sector, the portal e-klase (e-class) has gained popularity among education institutions, students and parents. To ensure convenient communication between inhabitants and local authorities and departments, the Riga municipality is using IT tools
more and more, at the same time reducing its expenses and administrative burden.
The most important cooperation partners in the development of ICT are the
Latvian Information and Communications Technology Association, the Latvian IT
Cluster, the foundation TechHub Riga that helps new entrepreneurs of the sector to
reach the global market, as well as the Riga Technical University and the University
of Latvia.
45
46
Latvian Information and Communications Technology Association: www.notepad.lv
The Latvian Information and Communications Technology Association: www.likta.lv
21
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
Turnover, personnel expenses and added value of ICT sector (million, euro)51
In 2014 Riga became the capital city of free wireless Internet in Europe (taking into account the number of free Wi-Fi points to one km2 and the number
of citizens). On average, in Riga one Lattelecom free Wi-Fi connection point is
available for 750 people and three Wi-Fi points on one square kilometre. Tallinn,
Stockholm, Vienna, Paris and Helsinki are the next most developed cities after
Riga in terms of free Wi-Fi.47
Indicators
Turnover of
enterprises in ICT
sector
3 151
3 373
4 390
5 064
17 316
18 337
4 444
18 120
3 788
Personnel
expenses of
enterprises in ICT
sector
RY
DELIVE
14 227
ICT
services
2 867
23 305
19 865
2 284
434
506
521
2 251
1 994
64
72
96
99
838
849
1 045
1 083
2010
2011
2012
2013
2012
2013
ICT production
Profit before taxes of enterprises of ICT sector (million, euro) 50
The TOTAL in
ICT sector
2 067
2 275
2 897
3 099
ICT production
87
102
122
147
ICT wholesale
885
1 010
1 429
1 524
1 096
1 162
1 346
1 428
181
248
314
359
ICT production
6
10
11
13
ICT wholesale
20
24
28
33
ICT services
155
212
273
313
572
602
686
767
ICT production
24
43
46
47
ICT wholesale
57
58
71
83
ICT services
491
499
569
637
The TOTAL in ICT sector
Added value of
enterprises in ICT
sector
2 357
471
2011
2013
In the Riga region, the number of Internet users in households is almost 5
% higher than it is in Latvia on average – at the beginning of 2013 it reached
76 %. Starting with year 2006, the number of households, where the Internet
is available, exceeds the number of households with a computer. This is due to
the fact that many households in Latvia access the Internet via mobile phone.52
ICT
wholesale
2010
2012
The TOTAL in ICT sector
15 494
FAST
2 616
21 449
2011
ICT services
Employees in ICT sector49
The TOTAL
in ICT sector
2010
The TOTAL in ICT sector
According to data of the Central Statistics Bureau, in four years (2010 – 2013)
the number of employees and amount of personnel expenses, as well as turnover and indicators of added value of enterprises in ICT sector have considerably
increased. In 2013 the turnover of ICT enterprises reached almost 3 099 million
euro a year and the added value exceeded 767 million euro.
Number of enterprises
in ICT sector48
ICT working sector
204,3
206,3
140,6
150,8
Accessibility of Internet in households
at the beginning of the year (%)
63,6
178,3
68,3
68,7
75,8
71,6
76
73,4
79,8
152,2
ICT services
150,4
122,4
ICT wholesale
ICT production
49
50
47
48
5,3
2,7
35
27,5
22,6
27,2
29,2
28,1
2010
2011
2012
2013
Information of Lattelecom. Available at: www.lattelecom.lv
The Central Statistical Bureau. Number of enterprises in ICT sector. Available at: www.csb.gov.lv
The Central Statistical Bureau. Number of employees in ICT sector. Available at: csb.gov.lv
The Central Statistical Bureau. Profit before taxes of enterprises in ICT sector. Available at: csb.gov.lv
2011
2012
2013
Altogether in households of Latvia
2014
In Riga region
The Central Statistical Bureau. Turnover, personnel expenses and added value of enterprises in ICT sector. Available at: csb.gov.lv
The Central Statistical Bureau. Computer/ Internet accessibility in different types of households. Available at: www.csb.gov.lv
51
52
23
24
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
2.
ECONOMIC
COMPETITIVENESS OF RIGA
25
26
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
2.ECONOMIC COMPETITIVENESS
OF RIGA
Following main national and Riga planning and development documents determine
economic competitiveness and development of the city:
•
•
•
•
•
The National Development Plan of Latvia 2014 – 2020;
The Sustainable Development Strategy of Latvia 2030;
The Sustainable Development Strategy of Riga 2030;
The Riga Development Programme 2014 – 2020;
The Riga Spatial Plan 2006 – 2018.
Non-financial investments in the statistical regions
(in comparable prices of 2013; million euro)54
2 501,6
2006
1 029,9
In order to reach sustainable goals, in the Riga Development Programme 2014
– 2020 favourable business environment and high economical activity are stated as
one of the priority directions.
After a significant decline during the crisis years, Latvia’s gross domestic product
continued to rise and in year 2014 it increased by 2.4% compared with the previous
year (in comparable prices of year 2010). However, it is still about 5.2% behind the
pre-crisis highest indicator in 2007. The newly produced production in Riga makes
around 50% of the whole national production.
In 2014 in terms of GDP per capita, Riga is on the average level of the European
Union. Besides, growth of GDP in Latvia can be observed every year. In 2014, as
previously, the trade sector has the largest share in economic sectors of Riga by
added value – 16.9 %. The second largest economic sector of the city is real estate
sector with 10.5 % share; the third – professional, scientific and technical services,
administrative and customer service sector with 10.3 % share, and with a little lower
share are transport sector – 9.6 % and manufacturing industry sector – 8.5%.
The total amount (private, local, national and foreign) investments in the economy
of Riga reached the maximum level in 2008, when around 3.9 billion euros were
invested in the economy of the city. During the crisis the investments dropped around 2.4 times, but since the year 2011 they again gradually increase. However, this
increase is not steady, as, for example, the total investments in the economy of Riga
in 2014 decreased by 3.6% compared with the previous year.
Comparing to the previous year, in 2014 the total amount of construction works
in the city increased by 2.8%. The amount of investments in Riga in 2013 made up
to 47% of the total investments in the country that is lower than 54% reached in the
pre-crisis period. While in 2013 the share of the capital city in construction works
carried out in the country increased to 41%.53
The Riga City Council Public Report 2014
53
6 882,3
1 155,9
6 671
3 627,6
1 720
409,2
incl.
construction
work
3 316,3
1 536,7
1 439,8
476,7
4 256,8
1 767,8
1 669,9
641,9
4 770,9
2 192,4
2 339,9
2013
Non-financial
investment
2 414,6
1 119.8
2012
Riga Region
4 374,6
783,3
2011
incl.
construction
work
3 280
2 440,5
2009
Non-financial
investment
3 179,7
1 328,7
2008
LATVIA
6 452,4
2 996
2007
2010
2.1.KEY ECONOMIC INDICATORS
27
954,0
4 607,3
2 152,8
According to data of the Central Statistics Bureau, there are more than 40
% of all the companies of Latvia active in the Riga region. The majority enterprises in Riga are microenterprises. There are 156 large enterprises located
in the Riga region; that makes 70 % of all economically active companies in
the country.
Economically active entities*, in breakdown by size groups55
145 303
Latvia
2010
Riga
Region
55 978
Market sector
151 911
Latvia
2011
Riga
Region
59 255
2012
Riga
Region
64 859
Latvia
small
medium
162 517
Latvia
micro
large
Out-of-market
sector
166 653
2013
Riga
Region
68 181
* Entities of market sector: self-employed persons, individual merchants, commercial companies, farmers and fishermen. Entities
of out-of-market sector: funds, foundations and associations, state budget institutions, municipal budget institutions.
54
55
Central Statistical Bureau. Non-financial investments. Available at: www.csb.gov.lv
The Central Statistical Bureau. Economically active statistical units. Available at: www.csb.gov.lv
28
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
In June 2015 Moody’s Investors Service assessed work of the municipality
in ensuring budget and financial stability and raised credit rating of Riga from
Baa3 to Baa2 with stable development perspective.
Employment in Riga by economic activity sectors (% of total)59
Industrial
manufacturing
In November 2014 the credit rating agency „Standard & Poors” increased
the credit rating of the city for commitments in local and foreign currency by
one level to BBB+/A2, estimating a stable development perspective. Along
with accession of Latvia to the euro zone, requirements of credit rating organisations increased for financial and budgetary policy of local governments,
causing necessity to reinforce the medium and long-term planning in budget
and financial sectors of local governments. Therefore one of the priorities of
Riga municipality in year 2015 is the introduction of three years budgetary
planning.56
At the end of July 2015 the registered unemployment rate in the country
was 8.6%, while the lowest unemployment rate in July 2015 was recorded in
Riga region – 5.4%, at the end of July 2015 in Riga – 5.1%.58
The Riga City Council Public Report 2014
The Report on the Latvian National Economy 2015
58
Unemployment indicators. State Employment Agency. Available: www.nva.gov.lv
2014
19,7
Trade
Finance and
commerce
Public
administration
16
6
Education
8
Health
protection
5
5,1
Other
4,9
4,8
17,4
6,6
10,4
In 2014, the average gross salary in Riga, compared to the previous year,
increased by 6.6% and reached 853 euro. In the capital city salary in the private sector reached 818 euro, about 18% exceeding pre-crisis level (in 2008
- 2009). In 2014 the average salary in the public sector reached 919 euro in
the capital city, slightly exceeding pre-crisis maximum level of year 2008 (938
euro). In 2014 the average nominal gross salary in Riga exceeded salary of
2008 for 98 euro (by 12.7%). Taking into account the increase of prices since
January 2008, in the reporting year also real average salary in Riga exceeded
the pre-crisis level by 2.5%.
Average monthly wage (euro)60
2012
2013
2014
2015*
In Latvia
In Riga
In Latvia
In Riga
In Latvia
In Riga
In Latvia
In Riga
TOTAL
684
777
715
814
751
853
785
892
Public sector
732
859
766
894
790
919
809
942
Private sector
657
733
688
771
730
818
730
818
* In the first half of the year
2.3.SECTORIAL STRUCTURE OF THE ECONOMY AND
PRIORITY SECTORS
One of the key pillars for the development of the city is economy whose
main task is enabling citizens to earn money and to take care of themselves
and their families. Economy is directly related to other pillars as well – the urban
environment (economical development based on the east – west direction)
and society (educated, capable and culture-respecting society).
56
57
21
15,4
16
Transport
The population of Riga is a key driving force and bases for the economic
development of the city. As it is stated in the 2015 report of the Ministry of
Economics, gradual increase of economic activities positively affects the situation in the labour market – the level of employment increases and high rate of
unemployment caused by the crisis decreases. Nevertheless, certain groups
of population, especially people with low education level and qualifications,
elderly people, as well as young people, feel the improvement of situation less
than others.
The trend of previous years continued also in 2014 – the number of unemployed people and unemployment rate decreased, however, number of people who are unemployed for longer time period remains high. At the end of
2014, 31.3% of 2 832 registered unemployed people who are able to work
were long-term unemployed people.
2013
13
6,9
7
Construction
2.2.ECONOMIC ACTIVITY OF POPULATION
In 2014 the situation in the labour market continued to improve, but slower
than before. The unemployment rate fell to 10.8% in the country that was
about 1.1 percent points less than in 2013, but the employment rate increased
by 0.9 percent points – to 59.1%. In 2014 in total 884.6 thousand people were
employed, but 107.6 thousand were job seekers that was by 12.7 thousand
people less than in 2013. In the first quarter of 2015 the number of employed
people increased by 0.3% and the employment rate increased by 1.1 percent
points, compared to the corresponding period of the previous year. While the
unemployment rate in the first quarter of 2015, compared to the corresponding period of 2014, decreased by 1.7 percentage points – to 10.2%.57
12
The Riga City Council Public Report 2014
The Central Statistical Bureau. Employees’ average monthly wage. Available at: www.csb.gov.lv
59
60
29
30
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
During the implementation process of the strategy of the city, municipal
institutions choose such development policy activities that contribute reaching
high employment rate, sustainable economical growth and price stability thus
creating material basis for growth of welfare of citizens and the city itself.
The main part of GDP of Latvia is formed by the service sector (approximately 70 %), manufacturing sector in the national economy forms 14.1 %
of GDP, trade – 16.9 %, transport and storage sectors – 13 %, construction
sector – 6.1 %.61 In 2013, the economical development of Latvia was supported by four main sectors – trade, construction, operations with real estate and
commercial services. Consequently, by the breakdown of sectors the growing
economic dependence on the domestic market demand is emerged clearly.
However, only small growth occurred in the sectors of transport and logistics,
but in the manufacturing sector the overall results were the same as in the
previous year.62
According to the data of the Riga City Council Public Report 2014 it can
be concluded, that based on added value in economic sectors of the city the
highest share is maintained by the trade sector – 16.9%, however, whose share in recent years is decreasing. The second largest sector of the economy is
real estate sector – 10.5% a third – professional, scientific and technical services, administrative and support service sector – 10.3%, slightly smaller share
has transport – 9.6% and manufacturing industry sector – 8.5%.63
Share of Riga economy sectors in total added value (%)
Since 2011 in the structure of the economic sectors the share of such
sectors as real estate, construction, finance and insurance has increased, but
proportion of manufacturing industry and commercial sectors has decreased.
Based on turnover indicators, in 2014 the largest company in Riga was LLC
Uralcheim Trading, at the same time it was also the largest company in Latvia
in trade sector. The next largest company is JSC Latvenergo, state company
working in the field of energy, and in the third place – LLC “RIMI Latvija” working in the field of sales.64
Number of companies by sectors in Riga sorted by overall turnover in 201465
Renting and management of
owned or rented real estate
Book-keeping, accounting, audit and
revision services; tax consultancy
Consultancy on commercial
activities and management
8,5
7
Construction
Trade
16,9
Transport
Health
protection
64
61
62
63
Computer programming
1 167
Legal services
1 163
Car Maintenance and repair services
1 054
Companies with highest turnover in Riga
6
4
3
Information platform Balticexport.com
Nordea Economical review of Latvia. Available at: www.nordea.lv
The Riga City Council Public Report 2014
Statistics of Lursoft. Available at: www.lursoft.lv
1 292
1 192
10,3
Other
1 404
Work of public relations agencies
10,5
Education
1 417
Management of real estate for
remuneration or on contract basis
6,1
Public
administration
1 559
Buying and selling of own real estate
7,3
Operations with
real estate
Professional, scientific and
technical services
2 022
Construction of residential
and non-residential buildings
9,6
Information and
communication services
Finance and
insurance services
2 280
Freight transportation on roads
2014
Industrial manufacturing
4 020
10
Company
Turnover, M EUR
In comparison to 2013
LLC URALCHEM Trading
1135,58
2%
JSC Latvenergo
741,11
-21%
LLC RIMI LATVIA
740,97
11%
LLC MAXIMA LATVIJA
674,35
1%
LLC ORLEN Latvia
503,41
-34%
JSC Latvijas Gāze
503,08
-12%
JSC ELKO GRUPA
493,54
-22%
LLC LDZ CARGO
365,51
2%
LLC NESTE LATVIJA
350,00
8%
JSC Sadales tīkls
303,83
2%
JSC Latvijas Valsts meži
275,72
7%
LLC LUKoil Baltija R
265,87
-18%
Statistics of Lursoft. Available at: www.lursoft.lv
65
31
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
The main priority sectors of the country are: production of food and beverages,
manufacturing of wood products, production of chemical and pharmaceutical
substances and production of chemical products, mechanical engineering
and metalworking products, production of computers, electronic, electric
and optical equipment, telecommunication and other IT services, storage and
transport ancillary activities. Respectively, in the planning documents the City
Development Department of the Riga City Council has defined the following
priority sectors to increase the competitiveness of the city:
• transport and storage sector;
• manufacturing of wood and cork products;
• production of food and beverages;
• computer, electronic, electric and optical equipment production and
information and communication technologies;
• construction sector;
• mechanical engineering and metalworking sector;
• tourism, including other sectors that are important for development of
tourism.
2.4. TRANSPORT AND LOGISTICS
Riga as the capital of Latvia, by its advantageous geographical location
in the middle of Baltic States next to Gulf of Riga, successfully operates as
a connecting point between the East and the West of Europe, as well as the
North and the South. The Riga municipality and its responsible institutions
successfully fulfil their functions and responsibilities to maintain and to develop
international cooperation with all the involved countries. Riga can be called
the largest transport and logistics centre not only of the region, but the whole
country where all types of transportation are used.
For the development of the sector different types of studies have been
carried out by the Riga municipality. The main references, future goals and
tasks are included in the following city development planning documents:
1. The Riga Development Programme 2014 – 2020;
2. The Sustainable Development Strategy of Riga 2030;
3. The Riga and Riga Suburbs Mobility Plan (approved in 2010) and action
programme thereof determining the priority activities to be implemented in
the long-term in order to improve and to arrange the transport infrastructure
considering the available financial resources. The main goal of the Riga and Riga
Suburbs Mobility Plan is to determine the necessary actions for creating joint
traffic system and to improve territorial accessibility by ensuring coordinated
and united transport infrastructure planning and traffic organization in Riga
and Riga suburbs.
2.4.1. Freeport of Riga
Since ancient times (the first mentioning in 5th century) Riga has had a
port. Initially it formed naturally along the coasts of Daugava as one of the
destinations of the international trade route between the Baltic Sea and Black
Sea; however, over the time it was developed and formed according to the
particular situation and requirements.
The Freeport of Riga Board count years of the port a little earlier than Riga,
as the first was the port and only then Riga was established. This year marks
815 years of the Riga port. The number of years is more symbolic, because it
is not known when the first boats stopped here.
Currently the Freeport of Riga is located at the further southern part of the
Gulf of Riga and it has been formed along both coasts of Daugava in 15 km of
length. The port is a multi purpose venue that in terms of cargo turnover is the
fifth largest port in the eastern coastline of the Baltic Sea; in addition, it also
provides passengers’ transportation.66
The Freeport of Riga is directly related to the development of the North
axis of Trans-European transport network TEN-T and sea mainlines, because
in these directions it can serve as a transport junction. The Freeport of Riga
is also strategically the most advantageous cargo transportation road in the
region; cargo could be transported also in the European – Asian transport
corridor (to/from Kazakhstan, China and other countries). Riga has the closest
port of the Eastern border of the European Union with the consumer markets
of Russia, Commonwealth of Independent States and Asia.
The Freeport of Riga for many years cooperates with international
organizations – the Cruise Europe Organisation, the Baltic Ports Organization,
the European Sea Port Organization, the International Association of Ports and
Harbours, the German-Baltic Chamber of Commerce in Latvia, the Worldwide
Network of Port Cities, the International Federation of Hydrographic Societies
and the International Harbour Master Association.
Riga has a multi-functional port handling of all types of cargo. except crude
oil. The total cargo turnover in the first seven months of 2015 has reached 27
709 tonnes, that is 1 % more than at the same time period last year. In 2015
the amount of handled cargo: bulk – 56.5%, that is by 2.1% more than in the
respective period in 2014; general cargo – 15.7%, where 10.1% decrease
is observed compared to the previous year; liquid cargoes – 27,8%, that
compared to 2014 is with 6.3% increase.
The Freeport of Riga Authority. Available at: www.rop.lv
66
33
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
The structure of transhipped cargo in January – July 2015
Number of entering cruise ships and passengers in the Freeport of Riga
Timber
7%
Other
13,1 %
90
Petroleum products
27,5 %
92
88
76
Ships
entering
the port
Number of
passengers
69
64
60
69 413
65 461
65
68
83 091
66 968
63 527
58 564
57
71 000
59 520
50 176
40 811
Chemicals
6,7 %
Coal
36,6 %
Containerized cargos
9,1 %
Number and types of ships served
2006
5000
2008
2009
2010
2011
2012
2013
2014
2015*
* Estimated
4000
Besides cruise ships, since April 6th 2006 in the Freeport of Riga JSC Tallink provides passengers’ transportation in the route Riga – Stockholm. The
number of passengers rapidly increased from 2008 till 2009, when two ships
cruised in the route Riga – Stockholm serving more than 500 000 passengers.
Currently the number of passengers is decreasing – the ship M/S Isabelle
cruises in the route Riga – Stockholm providing transportation of passengers,
passengers’ vessels and cargo between Latvia and Sweden, departing from
Riga and Stockholm every second day.
Others
Container ships
3000
Bulker
Passengers’ ships, ferries
2000
Oil tankers
Dry cargo ships
1000
2004
2007
The number of ferry passengers in the Freeport of Riga
2005
2006
2007
2008
2009
2010
2011
2012
388 768
370 261 381 929
360 211
361 674
352 473
2013
327 622
319 272
For already long time the Freeport of Riga has harboured cruise ships of
such companies as MSC Cruises, Viking Line ABP, Pullmantur Cruises, Silja
Line and other ships. In 2013, like it was in 2003, Riga was visited by regatta
Tall Ships Races with its countless sailing ships – for four days everyone could
explore gorgeous ships and talk with their teams.
The cargo handling capacity of the port terminals is 58.2 million tonnes a
year. In 2014 it was the largest Baltic port by cargo turnover – 41.1 million tonnes. The number of ships in twelve months in 2014 – 3797. Up to 80% of cargo turnover of the Freeport of Riga are transit cargo intended for dispatch to or
from the Commonwealth of Independent States. 35 stevedore companies and
28 ship agent companies are successfully working in the Freeport of Riga. The
main cargo in the Freeport of Riga are containers, various metals, wood, coal,
chemical fertilizers, and petroleum products. The port is open for all seasons.
344 989
332 036
280 974
271 831
Entering
Departing
206 438
196 483
158 700
152 315
50 828 53 891
2004
84 642
80 589
45 043
53 651
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
35
36
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
The Freeport of Riga Authority has launched elaborating the infrastructure development project “The Development of Infrastructure in Krievu Sala for the Transfer of
Port Activities from the City Centre”. In the Spatial Plan of Riga 2006 – 2018 it is also
foreseen to make the northern crossing of Daugava and to continue the construction
of the Freeport of Riga station in Kundzinsala. The Riga municipality also emphasizes
the necessity for development of passengers’ transportation envisaging facilitation
of their transportation between Riga and other cities.
At the end of November 2015 it is planned that one of the largest infrastructure
objects in recent years – Station Bolderaja 2 with a connecting road to terminals
of the Krievu sala – will be given for exploitation. Within the project the connecting
railway road to terminals of the Krievu sala for about 3 km long, as well as the Station Bolderaja 2 are being built. Perhaps, this project will go down in the history of
construction field of Latvia with the fact that, for the first time here combination of
such significant amount of innovative soil enhancement and consolidation solutions,
including the sand piles and vertical drains, were used (in fact, this was the only possible solution for consolidation process of soil to be carried out in the given time for
the project and in complex geotechnical conditions of the Spilve Meadows).
Project ‘Building of the Station Bolderaja 2 with a connecting road to the terminals of Krievu sala’ is linked to the Riga railway node development programme and
the unloading of cargo handling operations in the territory of the Freeport of Riga on
the right bank of river Daugava, in the central part of Riga, moving cargo terminals
to the newly built territory of the Freeport of Riga in Krievu sala, on the left bank of
river Daugava. As it is known, Riga City Development Plan for the period from 2006
to 2018 envisages the exclusion of Andrejsala and Eksportostas (Export port) from
the territory of the Freeport of Riga, because this approximately 123 ha large territory is located near the historic centre of Riga and partly is in area of the UNESCO
protected World Heritage Monuments, thus the current work of the Freeport of Riga
in Andrejsala and Eksportosta is earmarked for closure. Whereas, in order to serve
newly built port terminals in the Krievu sala, JSC Latvijas Dzelzceļs (Latvian Railway)
requires new railway infrastructure. The realisation of the project will increase the
total capacity of Riga railway node and will improve the safety of train movement.
The new construction site is located in the Riga city, on the left bank of river Daugava, in the territory of the Freeport of Riga between the existing railway stations
Lacupe and Bolderaja. Railway line is built in the span from the existing railway section Lacupe–Bolderaja in the direction to Krievu sala. The total cost of the project is
41 million EUR, of those approximately 30 million EUR are the EU Cohesion Fund
co-financing.67
The existing data and development indicators of the port indicate long-term viability, confirmed by the forecasts of indicative traffic intensities included in the Freeport
of Riga Development Programme 2009 – 2018. For elaboration of forecasts of traffic
of entering ships, cargo turnover was taken into account, as well as tendencies of
development of small ships, such as Handy Size, Handymax and Panamax.
67
www.buvinzenierusavieniba.lv
2.4.2. Riga International Airport
The Riga International Airport is the largest international aviation company in
the Baltic States and it is the main air traffic centre of this region that provides
regular passengers’ transportation, cargo and mail transportation with the civil
aviation aircrafts to European and other cities world wide. The Riga International
Airport provides both aviation services (aircraft, passengers and cargo services)
and non-aviation services (renting premises and territory, parking lots, VIP centre
services and others). It works with domestic and international airlines and has
become one of the few European airports that cooperate with both full-service
and low-cost airlines. 83 direct destinations in summer time and 66 destinations
in winter time are available from the Riga International Airport.
In 2014 the Riga International Airport served 4.8 million passengers that is by
0.4% more travellers than in the past. The number of transfer passengers was
29% of the total number of passengers served the last year; thus the airport has
significant advantages for increasing the number of transit passengers, since it
has experience with a large share of transit passengers. The most popular destinations passengers travelled through the Riga International Airport are Tallinn,
Vilnius, Helsinki, Moscow and Stockholm.68
The Air Transport Research Society (ATRS), after comparing the financial data
of 200 airports, has evaluated the Riga International Airport as the most competitive airport in Europe, taking into account expenses and structure of tariffs per
passenger. ATRS carries out such research every year since 2002 and the Riga
International Airport receives this honour for the first time. The research compared
69 European, 78 North American and 53 Asian airports. In order to determine the
most effective and competitive airports in the world, comparative analysis of financial and price policies of airports included in the research have been carried out.
The Riga International Airport in the field of customer service handles transfer
and transit passengers, passengers with special needs, under-aged children travelling unaccompanied, as well as accommodates VIP, CIP and general aviation
passengers, handles passengers’ services in case of flight delay and baggage
lost, and registers passengers, checks documents, organises passengers boarding and getting off the aircraft and supervises passengers on the platform.
Nearly 56% of the total number of passengers served the last year were transported by the national air operator airBaltic, and 16% – by the airline Ryanair.
Compared with year 2013, in 2014 the number of travellers increased rapidly for
airlines Wizz Air (+51%), Lufthansa (+18%) and the Norwegian Air Shuttle (+15%).
The last year the Riga International Airport served almost 66 thousand aircrafts
and 33 thousand tonnes of cargo, and it is the largest air transport node in the
Baltics – 46 percent of this region’s air passengers are transported through Riga.
SJSC Riga International Airport. Available at: www.riga-airport.com
68
37
38
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
Amount of cargo (t), flights and passengers in the Riga
International Airport
5 106 926
4 767 764
4 663 647
4 813 959
4 464 859
In Latvia the main railway passengers’ routes provided by JSC Pasazieru Vilciens are:
• The electric train routes: Riga – Aizkraukle, Jelgava, Skulte, Tukums;
• The diesel train routes: Riga – Daugavpils, Madona, Gulbene, Krustpils, Sigulda,
Valga, Rezekne, Zilupe, Liepaja.71
4 066 854
3 690 549
72 855
2 495 020
1 878 035
68 572
68 145
3 160 945
57 232
62 486
60 087
65 819
51 087
47 347
40 162
34 552
32 984
32 953
Passengers
Flights
15 896
12 558
8 130
Cargo (t)
2005
2006
2007
7 669
2008
9 431
2009
12 294
2010
12 665
2011
2012
2013
2014
For development of the airport, different types of projects are planned and
implemented to improve both infrastructure and services. In 2015 it is scheduled
to finish the work on the project “The Riga International Airport Infrastructure
Development” aiming to improve environmental conditions of the controlled and
open areas, to enhance air travel security standards and to increase the capacity
of the Riga International Airport. The project is financed by the Cohesion Fund.
Laying a capsule with a message for the future in the foundation of the building,
in November 2014 the Riga International Airport began construction of the new
terminal building. The first stage of the airport terminal construction envisages
enlargement of non-Schengen zone and additional four new boarding sectors,
thus improving the quality of the provided services. After the completion of the
new building, it will be possible to serve also larger aircrafts that will increase the
capacity of the airport, as well. The expending terminals is a major improvement
of the competitiveness of the Riga International Airport in Europe. It is an essential
condition for attracting new airline companies and launching their work at the Riga
International Airport, as well as for developing work of the airlines already operating
in the airport, thus strengthening the leading position of the airport in the Baltics
and Northern Europe.69
2.4.3. Latvian Railway
Latvian railway transport is organised by two state enterprises whose centres are
located in Riga. JSC Pasazieru Vilciens is responsible for passengers’ transportation,
it was founded in 2001; but the concern Latvian Railway is responsible for freight
transportation and overall railway infrastructure, it is one of the largest enterprises
in the country employing almost 12 000 people.70
69
70
SJSC Riga International Airport. Available at: www.riga-airport.com
SJSC Latvian Railway Annual Report 2013
In 2014 circulation of passengers in railway transportation reached 649 million
passengers/km72 and it is planned that the railway transport services will continue to
be used more and more often. The railway is one of the main routes for large freight
transportation, and it is a crucial factor for the development of the country and support
for economic growth overall. Mainly bulk cargoes and liquid cargoes are transported via
railway, but in recent years container freight transportation increased, as well.
In 2014 the public infrastructure of the Latvian Railway was used to transport 57 039
thousand tonnes of cargo going 11 835 thousand trains km, and to transport 19 222
thousand passengers going 6 163 thousand trains km. Compared with the previous
year, amount of cargo in tonnes increased by 2.2%, but the number of passengers
decreased by 2.8%.
Freight transportations are mainly done from Russia and Belorussia to the ports of
Latvia73, but only 2 % are domestic transportations.74
Acknowledging the major influence of railway on the development of the country,
more and more new projects are elaborated and implemented for the development of
railway infrastructure and services. Currently TEN-T project is implemented for track
reconstruction in the Rail Baltica corridor in Latvia; its aim is to reconstruct and to adjust
existing railway tracks in the sections from Sigulda till Latvian and Estonian boarder in
Valka and from Jelgava to Latvian and Lithuanian boarder, ensuring freight train speed
up to 80 km/h and passengers’ train speed up to 120 km/h. In the autumn of 2014
elaboration of sketch project for electrification of the railway network of Latvia was
finished. This project is the initial stage for electrification of the railway network of Latvia
in the East – West corridor, in Rail Baltica route, and for modernization of the existing
electrification network to operate with 25 kV alternating current. After finishing this project,
the necessary sketch project is developed for elaboration of the project application
to receive European Union financing and to prepare procurement documentation for
necessary electrification works.
The largest railway infrastructure object built during Latvian independency time – the
second track 52 km long in the span “Skrīveri-Krustpils” was opened at the beginning
of 2015.
Besides that, the following projects co-financed by the Cohesion Fund are
implemented:
1. Modernization of Liepaja station signalling system with reconstruction of rail tracks;
2. Reconstruction of railway tracks;
JSC Pasazieru Vilciens. Available at: www.pv.lv
The Ministry of Transport of the Republic of Latvia. Passenger circulation of railway transport in
the first quarter of 2014. Available at: www.sam.gov.lv
73
SJSC Latvian Railway Annual Report 2014
74
The Central Statistical Bureau. Cargo transport by railroad. Available at: www.csb.gov.lv
71
72
39
40
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
3. Replacement of switches – delivery of switches;
4. Modernization of railway passengers’ infrastructure;
5. Reconstruction of marshalling hump of Skirotava Station;
6. Construction of the Bolderaja 2 station with an access road to the Krievu
Sala terminals;
7. Modernization of signalling, telecommunication and power supply systems in the section Bolderaja 1 – Zasulauks.75
2.4.4. Road cargo transport
Freight turnover in railway transport (million t/km)76
Road cargo transport makes approximately 29 % of the total cargo transport
amount in the country and in 2014 more than 80 % of road cargo transport was
particularly domestic road transportations. From 2010 till 2013 in Latvia, including Riga, relatively small changes can be observed in the market; on average
domestic road cargo transportations are 50 000 tonnes a year.
21 410
19 779
17 955
14 179
19 581
18 618
18 313
Road transport also has an important role in the development of transport
sector and national economy. Based on the NACE 2 sector classification, road
cargo transportation has two codes 49.41 and 49.42. According to data of the
Central Statistics Bureau, in 2012 there were 3 296 companies working in the
railway and pipeline transport sector78 proving that the market is rather fragmented and dense.
21 867
19 532
18 725
19 441
17 179
16 831
Road cargo transportation (thousand tonnes)79
15 020
60 609
53 936
52 621
44 787
43 057
50 484
62 239
50 565
Domestic
transportation
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
9 149
9 564
10 125
11 674
2011
2012
2013
2014
2013 2014
Information of the cargo transportation amounts (thousand tonnes)
transported by JSC LDZ Cargo in the Latvian railway in April and in 4 months
of 2014 and 201577
April
2015%
4 months
2015 %
2014
2015
vs 2014
2014
2015
vs 2014
4851
4806
99,1
21890
21186
96,8
Domestic transportation
45
91
202,2
312
357
114,4
Export transportation, incl.:
388
232
59,8
1650
928
56,2
144
97
67,4
462
354
76,6
4279
4112
96,1
19272
18683
96,9
3927
3756
95,6
17631
17221
97,7
139
371
266,9
656
1218
185,7
Transported cargo – overall,
incl.:
via near port stations
Import transportation, incl.:
via near port stations
Land transit
SJSC Latvian Railway. Available at: www.ldz.lv
Central Statistical Bureau. Cargo transportation by railroad. Available at: www.csb.gov.lv
77
SJSC Latvian Railway. Amount of cargo transportation. Available at: www.ldz.lv
75
78
76
79
Central Statistical Bureau. Cargo transportation by railroad. Available at: www.csb.gov.lv
Central Statistical Bureau. Cargo transportation by railroad. Available at: www.csb.gov.lv
International
transportation
41
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THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
2.5. Science and technology
Science and technology sector is the basis for national economy, and it has
an important role in the prosperity and development of the country. In Latvia the
amount of investments in the field of research and development since 2000 has
increased more than 2.8 times. Riga is in the first place in Latvia in terms of number of universities and students and it is also a scientific, research and innovative
technology centre of the country. 80 % of all the universities of Latvia are located
in Riga. Therefore, the most important task of the city is to continue preparing
high-level experts, who could contribute in creating new scientific solutions and in
developing innovations in the market. In addition, Riga with its educational base
is already the centre of medical sector in the Baltic States scale and could also
become a centre in the pharmaceutical and biotechnological sectors.
There are seven scientific institutions working actively in Riga – the Institute
of Electronics and Computer Science, the Institute of Physical Energetics, the
Latvian Institute of Aquatic Ecology, the Latvian Institute of Organic Synthesis,
the Latvian State Institute of Agrarian Economics, the Latvian State Institute of
Wood Chemistry and Latvian Biomedical Research and Study Centre, as well as
two private scientific institutes – LLC Economical Institute of Latvian Academy of
Sciences and the Information Technology Institute of Riga.80
In the framework of support system of science and innovation, tax reliefs have
been applied for businesses that invest in the development of manufacturing and
research creating innovative products, and increase the added value of products.
As well as the Green Industry Innovation Centre has been established with the aim
to support and to promote business activity involving innovations in field of green production; moreover, the Innovation Fund lends money to entrepreneurs for
development and production of certain innovative products together with Latvian
scientists.81
2.6. Tourism
Tourism is a one of the priority sector of the economy of Riga and Latvia, and
the capital city is the most popular foreign tourist destination in the country. To
promote the development of tourism sector, the state has defined the following
economical goals of the sector:
• to increase the share of foreign tourists that stay for three and more days;
• to increase the growth of export of tourism services every year by 5 – 10 % in
comparison to the previous year;
• to achieve the growth of share of characteristic sectors of tourism in GDP up
to the average level of countries in Central and Eastern Europe (on average 5 %);
• to ensure that growth of share of local tourism services every year has a tendency to outperform the growth of total share of export tourism services.82
The Ministry of Education and Science of the Republic of Latvia. Available at: www.izm.gov.lv
www.zti.lv; www.chamber.lv The science and innovation policy guidelines of the Latvian Chamber of Commerce and Industry
The Marketing strategy of Latvian Tourism 2010 - 2015
80
81
82
Riga, as the Hanseatic League city, has all the precondition for becoming
a favourable tourism destination. Since 1997 the historical centre of Riga has
been included in the UNESCO cultural heritage list, the city has high quality urban constructions, architecture, artistic and historical monuments, and variety
of entertainment possibilities.
Currently the main tourism promoter, as well as developer of the sector
is the Riga Tourism Development Bureau, more widely known by its tourism
brand name Live Riga. The bureau ensures a platform for five trends:
LOOK
RIGA
FEEL
RIGA
STAY
RIGA
MEET
RIGA
WORK
RIGA
information
about
sightseeing
objects,
museums and
other places
in Riga where
events take
place;
information
about events,
restaurants,
SPA and
shopping
places in the
city;
information
about short-term
or long-term
accommodation
possibilities in
the city, as well
medical tourism;
information
about
organising
conferences,
congresses and
similar events in
Riga;
information
about business,
investments,
export and
possibilities to
develop the
economical
environment in
the city83
Since its foundation in 2009, in the framework of Live Riga different marketing campaigns have been launched in foreign countries – in Russia, Lithuania,
Estonia, Denmark, Finland, Germany, Norway and elsewhere; therefore, the
amount of tourists in Riga has increased. According to statistical data, the
amount of guests accommodated in hotels and other accommodation places
increase every year, including the number of foreign tourists accommodated
in 2013 has been almost by 125 000 guests more than in the previous year.
During the last year the number of served tourists in Riga has increased by
15%, including foreign guests – about 16%. In 2014 the number of sleeping
nights in tourist accommodation places in the city increased by 8%.
Overall, at the end of 2014 in Riga there were 119 accommodation places,
with total number of beds 13 871. In the first quarter of 2015 in the hotels and
other tourist accommodation places 360.5 thousand guests were served that
is by 3.4% more than in the first quarter of 2014. Compering to the first quarter of 2014, in the same time period of 2015 the number of tourists from the
neighbouring countries has increased – from Lithuania (increase of 19.5%),
Belorussia (8.0%), and Estonia (3.3%). While the number of visitors from Russia continues to decrease – in this quarter it dropped by 40%. Visitors from
neighbouring countries made 45% of the total number of served guests.84
The Bureau of Riga Tourism Development. Available at: www.liveriga.com
The Central Statistics Bureau. Hotels and other accommodation places.
Available at: www.csb.gov.lv
83
84
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2.7. Investing in Riga
Indicators of hotel usage – bed occupancy in Riga (%) 85
Explicit cyclicality can be observed in the dynamics of investments. During
the years of economical recession, the amount of investments in the economy
of Latvia decreased considerably; while when economic situation are becoming more stable, investment activities are growing relatively quickly. In the
first part of 2014 the dynamics of investments were positive. In the first quarter
investments in the national economy of Latvia increased by 9.3 % and in the
second quarter – by 2.1%. While in the third and fourth quarters of year 2014
the amount of the investment was respectively 1.7% and 0.6% lower than a
year ago. Overall in 2014 investments increased by 1.3% and makes 23% of
GDP. At the first quarter of this year the amount of investments in the national
economy were almost 1% less then than a year ago.
54,8
48,13
40,81
2011
43,31
2012
2013
2013
Number of tourists accommodated in hotels and other accommodation
places in Riga 2011 - 201486
1 112 990
943 671
823 698
971 728
The role of the state and the city is essential in the process of investing. In
the conditions of weak crediting, the state provides a notable support for private investments with the European Union structure funds co-financing.
1 274 357
1 122 926
971 303
According to Lursoft data, in the end of April 2015 the direct foreign investments in the share capital of companies registered in Riga made up to
5.82 billion euro, in one year time increasing by 6%. The amount of foreign
investments in the capital city made 80% of total foreign investments in the
country.88
845 681
Accommodated
guests all together
Foreign guests
2011
2012
2013
Direct foreign investments in share capital of registered
companies in Riga (million euro)89
2014
Everyone, regardless of age, gender or interests, can find something
interesting and useful in the capital city of Latvia, Riga:
5,0227
4,3136
Baltic capital
of culture!
capital of
gastronomy!
architectural
pearl!
city for your
business!87
city for beauty
and wellness!
Riga, where
centuries meet!
place for
active
holidays!
city for
your health!
The Central Statistics Bureau. Hotels and other accommodation places. Available at: www.csb.gov.lv
The Central Statistics Bureau. Hotels and other accommodation places. Available at: www.csb.gov.lv
87
The Bureau of Riga Tourism Development: www.liveriga.com
85
86
city for shopping!
5,4250
5,853
4,5064 4,5682
3,068
1,0531 1,2126
1,351
1,3850 1,4671
1,7769
2,0404
2,3372
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
88
89
The Riga City Council Public Report 2014
Statistics of Lursoft. Foreign investments. Available at: www.lursoft.lv
45
46
THE ECONOMIC PROFILE OF RIGA 2016
THE ECONOMIC PROFILE OF RIGA 2016
Swedbank AB, GE Capital Global Holdings Inc., DNB BANK ASA, Rugby
Holding B.V., SKANDINAVISKA ENSKILDA BANKEN AB should be mentioned
as the largest investors.
The largest investors in Riga, to August 201590
No
Country
Investments, EUR
1
Kingdom of Sweden
1 410 776 475 ,20
2
Kingdom of Netherlands
570 309 451 ,32
3
Kingdom of Norway
444 140 358 ,95
4
Republic of Cyprus
439 833 646 ,62
5
The Russian Federation
362 036 978 ,16
6
Republic of Estonia
347 732 756 ,59
7
Republic of Lithuania
339 800 505 ,46
8
United Kingdom of Great Britain and Northern Ireland
336 811 235 ,91
9
United States of America
307 506 153 ,48
10
Kingdom of Denmark
180 830 350 ,09
11
The Grand Duchy of Luxembourg
168 637 330 ,24
12
Republic of Finland
150 392 337 ,41
13
Ukrainian People’s Republic
104 478 478 ,51
14
Republic of Malta
97 505 285 ,87
15
Republic of Austria
92 662 386 ,76
16
Federal Republic of Germany
59 628 690 ,41
17
French Republic
39 851 878 ,97
18
The Swiss Confederation
32 691 168 ,33
19
British Virgin Islands
29 413 908 ,48
20
Italian Republic
23 166 246 ,05
In the reporting year 113 million euro were allocated for capital expenditures
of the Riga City budget funds. The recent years investment dynamics of capital investments of Riga municipality suggests that, despite the limited budget
resources and the reduction in revenues in the post-crisis period, successfully
restructuring expenditure positions in the budget, the municipality has even
managed to increase investments in urban transport and social infrastructure
projects. In the period from 2009 to 2014 the municipality has allocated in capital investments up to 22% more financing than in the previous 6 years (2003
– 2008) before the crisis. In 2014 the largest share of capital investments of
the municipality in sectors were allocated still for economic activity – 33.8%
(in the previous year – 47.6%). The second largest share of the total capital
investments was for education – 23.5% (in 2013 – 14.5%), the third – for social
protection – 17.8%.
During the reporting period the municipal budget of the city were allocated
for implementation of the European Union funds and other projects, in the total
amount of 35.7 million euro, about 9.7 million euro less than in the previous
Statistics of Lursoft. Foreign investments. Available at: www.lursoft.lv
90
year. 27.3 million euro of the total EU fund financing were allocated for capital
expenditures of projects.
The largest EU and other projects of the Riga municipality and total expenditures in year 201491:
• Restoration and reconstruction of the National Art Museum building,
Kr.Valdemara street 10a (2 projects) (9 588 651 euro);
• Grizinkalns and the adjoining Miera Garden area revitalisation (2 404 238
euro);
• Discrepant to legal requirements landfill on Augusta Deglava recultivation
in Riga city (2 192 575 euro);
• Reconstruction of the crossing of Ulmana gatve and the access road to
the airport “Riga” (P133) (from Lielirbes Street to Sampetera street and from
Grencu street to Gramzda street) (1 928 919 euro);
• Improving infrastructure of pre-school educational institutions in Riga municipality (ERDF - 1 406 603 euro; VRAA - 1 288 028 euro);
• Paid temporary public works (1 239 122 euro);
• Complex solutions for reducing greenhouse gas emissions in buildings
of the pre-school education institutions of Riga municipality (1 181 349 euro).
It is expected, that the amount of investments in the economy of Latvia
will gradually increase in the future. However, the dynamics of the investing
process will be determined by the accessibility of financial resources, increase
of the overall demand and the implementation of state supported projects for
business promotion.
2.8. Creative industries in Riga
In the National Culture Policy Guidelines a significant role for development
of culture has assigned to creative industries; as a new economy sector it
ensures use of cultural and artistic resources in creating products and services
with high added value.
Creative industries are defined as activities based on the creative work,
abilities and talent of an individual and that have the potential to make products
with high added value creating and using intellectual property. Creative
industries include architecture, marketing, industries of art and culture, design
(including fashion, graphical design and applied arts), films, computer games
and interactive programs, music, new media, publishing, radio and TV.92
Referring to several international comparative researches, future forecasts
and effects of existing state support instruments, there are two priority sectors
of creative industry in Riga – design, and audio-visual media and multimedia
that have the highest export potential. In the sectors of multimedia and audiovisual media the following companies are established and operating in Riga
– Lattelecom Technology, DD Studio, film studio Rija and others. In general all
The Riga City Council Public Report 2014
The Ministry of Culture of the Republic of Latvia. Creative industries. Available at: www.km.gov.lv
91
92
47
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creative industries have close link to other sectors, both in creative industries
and outside; besides that, the sector of creative industries adds value to the
urban environment.93
Creative industry centres have established themselves in different quarters
of Riga; any of them is unique and with a positive influence on the urban
environment – they have become an essential part of cultural and economical
development of Riga.
The largest and most well known creative industries in the city are:
• Andrejsala – home of innovation and creative industries, it forms the
new cultural environment in the city of Riga. The industry brings together
professionals of different sectors – audio and visual arts, architecture,
information technologies, design and other sectors. In the future it is expected
that Andrejsala will enrich the spatial, public open space and transport structure
of Riga historical centre, becoming also an important place for business,
residence, tourism and entertainment.
• Spikeri – located next to the Central Market of Riga, it is the creative quarter
of the city and home for creative culture organisations, events of contemporary
music and cinema, art galleries, offices, cosy restaurants and cafes. Included
in the UNESCO heritage list, the industrial aesthetics of territory of Spikeri
serves as an inspiration for the development of the whole quarter. The territory
becomes contemporary, modern and publicly accessible urban environment.
• Riga Film Fund is co-funded by the Riga City and its aim is to promote
foreign film production in Riga and Latvia. Co-funding are intended for film
projects co-produced by Latvia and foreign countries, planned to be filmed in
Riga or Latvia; thus attracting foreign investments, creating new job places,
developing national cinema industry and popularizing Riga in the world.94
• Kalnciema Street Quarter attracts visitors not only with the 18th/19th
century wooden houses, but also with events, theatrical performances, films,
musical performances and markets.
• The Republic of Miera Street is a world of little shops, cafes, workshops
and other creative initiatives.95
• RISEBA, the largest media centre in the Baltic States, is the home of
architecture, art, culture, education and business of audio visual media.
• VEF creative quarter, where already starting from 2008 different art events
– exhibitions, creative workshops, plays, concerts, etc. take place. Currently
there are at least 20 artists’ workshops in this quarter.
• Tobacco factory is an innovation centre of interdisciplinary education,
culture and business.96
95
96
93
94
The Riga Tourism Development Bureau. Creative Riga. Available at: www.liveriga.com
The Riga City Council City Development Department. Portal: www.investeriga.lv
The Republic of Miera Street. Available at: www.mieriela.lv
Creative quarters in Riga. Available at: www.radosiekvartali.wordpress.com
3.
BUSINESS AND INVESTMENT
ENVIRONMENT
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3.BUSINESS AND INVESTMENT
ENVIRONMENT
3.1.LEGAL FRAMEWORK
The quality of the business environment is one of the most important elements for
raising competitiveness of the country, and for the city, as well, – better conditions
the state can ensure for entrepreneurs, the more investments can be expected
in the national economy, and that means new job places and prosperity for its
citizens. One of the main aspects of business environment is the legal framework
that can regulate the environment to the positive or negative direction. Not only
legal documentation of the city, but also the national and the European Union legal
acts are relevant for entrepreneurs in Riga.
In Latvia the most common tool to assess the business environment is an
international study “Doing Business” carried out by the World Bank. In the study
of year 2015 among 189 countries Latvia is ranked on the high 23rd place and on
the 9th place among member states of the European Union.97
The market of Latvia is a free market, and all interested parties, including foreign
investors, have equal rights to start a business in any city or populated area.
General business regulatory normative acts apply to all companies equally. The
main normative acts are:
• The Commercial Law that defines who is a merchant, and what is merchant
company, prescribes a procedure for registering a merchant and merchant
company in the commercial register;
• The Competition Law, the aim of which is to protect, to preserve and to
develop the free, fair and equal competition in all sectors of the national economy
in public interests by limiting market concentration obliging to terminate the
prohibited activities and prosecuting perpetrators;
• The Law on Taxes and Fees that defines forms of taxes and fees and a
procedure for estimating, collecting, levying taxes and fees, rights, duties and
responsibilities of tax and fee payers, and administration authorities, as well as,
taxpayer registration procedure, and an appeal procedure against decisions on
taxes and fees issues. The tax system in the country is structured dividing taxes in
four types – national taxes and fees, municipal fees, and taxes defined in the laws
and regulations of the European Union.
In the budget of Riga municipality the following taxes and fees applicable to
entrepreneurs in the city are included:
• personal income tax for employers registered in the administrative territory of
Riga paying for employees whose place of residence at the start of the tax year
was declared in the administrative territory of Riga;
• real estate tax paid by Latvian or foreign natural and legal persons who have
97
Foreign Investors Council: www.ficil.lv
a real estate in their ownership or in legal possession;
• lotteries and gambling tax paid by capital companies that under the statutory
procedure have obtained a special permit (licence) to organise and maintain
lotteries and gambling;
• state fee for changing last name, first name and nationality records in person
identification documents;
• state fee for registration, amendments and supplements of civil registration
records;
• state fee for issuing special permissions (licenses);
• state fee for declaring domicile;
• municipal fee for trade in public places;
• municipal fee for keeping animals;
• municipal fee for receipt of official documents of the City Council and their
certified copies;
• municipal fee for placing advertisements in public places;
• municipal fee for maintenance and development of municipal infrastructure in
Riga;
• municipal fees for construction works.
Other taxes applicable to entrepreneurs in the state, including the city:
• enterprise income tax paid for the taxpayer’s taxable income – a profit
generated from business activities with subtracting expenses related to business
activities;
• micro-enterprises tax;
• state social insurance mandatory contributions;
• natural resources tax;
• value added tax;
• customs duty;
• tax on cars and motorbikes;
• vehicle operating tax and company car tax;
• electricity tax.98
3.2. BUSINESS START-UP
To start a business, there needs to be an idea and a plan how to realise it, only
then a business type corresponding to particular company idea can be chosen and
the registration procedure can be launched. Companies in Latvia are registered by
the Register of Enterprises.
Altogether in Latvia there are five legal forms of commercial companies, the
most common of them is a company with limited liability. According to Lursoft
data, by the first half of 2015 in Riga there are registered 8 895 companies, 8 299
of them are companies with limited liability, 410 are individual merchants, but 35
are joint-stock companies.99
Riga municipality portal: www.riga.lv; legislative web site Likumi.lv
Lursoft statistics. Available: www.lursoft.lv
98
99
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Company registration process in Latvia is simplified, and – comparing to other Baltic
States, in Latvia there is the lowest number of procedures and the lowest minimum share
capital (1 EUR). Since 2012 the electronic registration system in the Register of Enterprises
is introduced via the portal www.latvija.lv, where you can also declare amendments in
registration data, information about reorganization, liquidation and termination of the
contract. Thus, the commencement of the business is considerably facilitated in Latvia.
3.3. REAL ESTATE
One of the defining features of Riga development opportunities is its territorial planning
and the real estate of the city, and the market related thereof. One of the long-term objectives
of Riga is “Opportunity city for everyone”, hence infrastructure and environment of the city
is strategically planned for entrepreneurship. The defined development directions of the city
for functional use of the territory are:
• development of functions of capital city;
• development of municipal functions;
• development of business and office functions;
• development of commercial services.
To ensure above-mentioned directions, different types of functional objects are needed.
In the first half of year 2015, there were no significant changes of demand for premises and
rental fees in the office premises market in Riga. The share of free office premises in the most
demanded high class office centres continued slowly to decrease and is in the level of 2 to 3%.
Vacancies are considerably higher outside the central business district (CBR) in the city and
in the lower class offices. Lessees’ rotation is passive, new premises are most often sought,
if the company grows and the lessor cannot offer the necessary additional area. There are
lessors that for these reasons create the deposit of free area to be able to meet their lessees’
requirements for additional facilities. In Riga, the highest demand is for office premises in CBR,
including the Skanstes district new office buildings. Acknowledging shortage of Classes A
and B1 offices, lease contracts are signed in office centres that have not been given yet in the
exploitation, for example, the most of the Europa office centre has already been rented.
After the move of the State Revenue Service of the Republic of Latvia to the
new building on Talejas Street, large lower class office premises fell vacant that still
have not been rented to new lessees. Administrators have changed in some office
centres of this class, there are also changes in the office rental policy; therefore,
there is relatively high rate of vacancies in the city centre.
As indicated in the Riga Spatial Plan 2006 – 2018101, development of the Class
A office wide territories are not planned in the centre. The development of this
type of office complexes is planned in the new development centres and in some
particular places – in the Kipsala, Kliversala, Citadele, Andrejosta, in surroundings
of the Central station and in the buildings of Hanzas Street – Skanstes street
centres. Development of the Classes B and C offices in the historic centre of Riga
is expected to be limited, it will take place mainly in new buildings in the centre,
especially near to city streets and the railway, as well as in Citadele and in historical
buildings that by reconstruction can be adjusted for this function.
Lessees’ action in the office rental market depends on their priorities. If it is
necessary for the business and financial situation of the company allows, then
priority is given to slightly more expensive but qualitative premises. Companies,
whose determinative is economic factor and level of premises is secondary, choose
to rent cheaper premises in office centres or in buildings outside the city central
business district.
One of the factors preventing to rent offices in the centre is a growing need of
lessees for parking slots.
Demand is stable, therefore the rental fee also remains stable. In some office
centres, when lease contracts concluded during the crisis end, fees are increased
up to the market level.
The total free area of office centre premises by classes, rental fee102
Rental fee of office premises, free space
100
Category of office
premises
Rental fee, EUR/m² per
month
The share of free
premises in Riga
centre
A
12 – 18
2%
B1
10 – 15
2,1 %
B2
7 – 12
13,3 %
C
4–9
32,2 %
For already long time in the segment of high class office premises the offer is insufficient,
bringing forward the potential of building new Class A offices.
Currently, in the construction process there are several office centres that are planned
to be given for exploitation in 2016 - 2017, for example, Hanner office building in Skanstes
area (~15 000 m2). Moreover, several existing business centres are expanding – such as
Teraudlietuve (~2 700 m2) and Europa (~2400 m2).
Market review of trade premises in Riga. 2nd quarter of 2015. Available: www.latio.lv
100
Category
of office
premises
Total free space of office
centres in breakdown of
classes, thousand m2
Rental fee asked by
lessors, EUR/ m2
per month
A
1,9
9-14
B1
5,2
8-12
B2
24,2
6-10
C
9,6
3-7
Latio experts envisage that, in general, the rent will not increase in the nearest
future, but in some segments it may even decrease.
Rental fees asked by lessors are reflected in the table, but the actual fees
for certain agreements can also be smaller, particularly when the agreement is
concluded with a large and stable lessee.
The Riga Spatial Plan 2006 – 2018 with amendments
Market review of trade premises in Riga. 2nd quarter of 2015. Available: www.latio.lv; www.colliers.com Market of
industrial area of Latvia 2015.
101
102
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The extensive range of rental fees is partly related to the amount of administration
fees and lessors’ different understanding of applying administration and rental fees.
Lessees are interested in amount of the total payment.
The office administration fees in office centres varies from 1 to 6 EUR/m2.
In the segment of trade premises the largest activity is in the Old Riga and in the
active centre of Riga where number of unrented premises are small. In recent years,
in the centre of Riga share of free premises has decreased very rapidly – at the
end of 2009 25 – 30 % of trade premises were unused. The demand tends to be
segmented – lessees are choosing trade facilities in places with better pedestrian
flow and closer to other successful merchants. The most active facilities searchers
in the Old Riga and in the centre of Riga are restaurants and other catering
businesses. For these lessees very important factor is the ability to have an outdoor
terrace. Overall, the most requested premises are 50 – 100 m2 large area.
The global political developments will continue to affect the overall situation in
the industrial premises segment and attraction of corresponding market players.
Most of the projects that are planned to be given in the market in 2015 are already
rented, therefore increase of more vacancies is not expected. It is envisaged that
the rental fee will remain stable, though there could also be slight decrease. In
January 2015 the total unrented industrial warehouses reached 2.2 %, compared
to 2.7 % in the previous year; that was facilitated by reduction of free premises in
B class segment.
3.4. BUSINESS SUPPORT PROVIDED
BY THE MUNICIPALITY
One of the objectives of Riga is to ensure that it is an opportunity city to anyone
regardless of different aspects (gender, age, nationality, etc.) – everyone can fulfil
their visions and dreams. To achieve that, the most important task is to ensure
adequate support from the municipality. Riga business environment attracts active
people and companies that by earning create workplaces, as well as income for
themselves and others.
The Riga municipality is implementing a range of activities to continually support
new and existing entrepreneurs, as well as creates favourable environment for
development of enterprises. The management of the Riga City is interested in
creating new businesses; therefore, it informs and encourages young people to
start their own business. In 2015 different types of support tools and documents
were used contributing to the emergence of new enterprises and the development
of existing ones, thus creating an innovative, open and exportable economy in the
city.
In the Riga Development Programme for 2014 – 2020 a favourable business
environment and high economic activity is defined as one of development directions.
As it is indicated in the programme, the municipality has identified a variety of
tasks to achieve the goal – cooperation with scientific and business sectors will be
strengthened for innovation development where municipality will take the role of
mediator. Also, the municipality will continue to provide support for implementation
of new business ideas in the city and will seek cooperation opportunities with
partners from public and private sectors that are interested in the growth. Since
previous experience shows the lack of territory and facilities suitable for industrial
manufacturing in the city, the municipality will be actively involved in initiatives
that focus on development of industrial areas in its territory. To strengthen the
international competitiveness of Riga, activities that focus on international business
attraction to Riga will be continued, using the already existing experiences, and the
cooperation with international organizations, as well as seeking new opportunities
for the promotion of the city.103
In the Riga Spatial Plan 2006 – 2018, policy of using the territory of the city is
defined, and hence also the possibilities for entrepreneurs developing their activities
in most appropriate areas in the city.
In the Sustainable Development Strategy of Riga until 2030 it is defined that the
pillar of the economy of the city is the following priority sectors: a port, the chemical
industry, computer technologies, manufacturing of electronics, professional,
scientific and technical services, metalworking industry and mechanical engineering,
transport and logistics, tourism and education. The economic trends of the city
suggest that particular attention should be paid to efforts to increase the added
value of manufacturing – export of high added value industrial production ensures
multiplicative effect to economic development of the city and the state overall.104
The Riga City Council, in cooperation with Swedbank, in 2009 has developed
a grant programme “Atsperiens” (Take-off) aiming to promote the development of
small and medium-sized enterprises, to motivate emigrated people of Latvia to
return to Riga, as well as to speed up reaching the European Union welfare level.
Regarding the grant programme “Atsperiens” it is possible to receive co-financing
of 80 % for covering various expenses of new merchants – for purchasing specific
technical equipment and licences, accounting and legal – consultant service fees,
web site development, specific employees’ training, creating marketing materials,
costs of rent and improvements of premises, etc. The maximum grant available for
one merchant is 15 000 euro. Twice a year, an open call of the tender is organised
to determine the most economically viable and innovative businesses ideas in Riga.
In 2015 the total funding of the grant is 190 000 euro. So far 13 open calls have
been organised, in total 1 342 business ideas were submitted and support has
been granted to 117 companies for more than 900 000 euro. Since the 10th open
call the mentor club of the programme “Atsperiens” has been launched, where
winners of the previous tenders share their experience with emerging entrepreneurs,
by consulting about the business development process methods, challenges,
achievements, lessons learned and errors made.105
Development Programme of Riga 2014 – 2020.
Sustainable Development Strategy of Riga until 2030.
The Riga City Council City Development Department. Portal www.investeriga.lv
103
104
105
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pre-incubation is an integral part of the process for those authors of ideas who
intend to apply to LIAA announced small scale grant scheme for the grant in
amount of 10 000 – 140 000 EUR.
Incubation services are provided to those companies that have received a
positive decision of LIAA on the support of the small scale grant scheme, namely,
in addition to LIAA grant companies receive also incubation services in the Green
Industry Innovation Centre.108
www.liveriga.lv
www.investeriga.lv
One of the leading and priority sectors in Riga is tourism, therefore a project
with the brand name Live Riga was developed, whose main task is to promote the
business cooperation and exchange of information with the citizens and visitors
of Riga, including foreign guests. During the project implementation the web site
www.investriga.com was created; the Riga City Council continues to maintain it
and updates the information on the economic accessibility of the city to local and
foreign investors – all the necessary information about the city as an attractive
investment destination, including data on economic and market dynamics, and
the availability of labour force, advantages and business support programmes, as
well as it consults companies on development opportunities and possibilities to
attract investors.106
To facilitate collaboration between the municipality and entrepreneurs, as well
as the development of priority sectors, the contact with sector associations and
business associations has been constantly maintained. The municipality also
periodically participates in various level and type of exhibitions and business
promotion events. The most important event of industrial manufacturing in the
Baltic region is an international exhibition of engineering, metalworking, automation,
electronics, electrical engineering, tools and new technologies Tech Industry that
takes place also in 2015 in Riga International Exhibition Centre Kipsala.
In 2016 the MIPIM event will take place in Cannes, France for the 27th time; it will
be attended by the most important real estate market participants of the world –
starting from the territory development concept experts up to investors and project
users. It is a precious opportunity to get acquainted with investment opportunities
and development projects around the world, as well as with members, partners,
and potential capital sources. Riga Municipality together with entrepreneurs of real
estate sector participates in this exhibition already since 2007.107
The Green Industry Innovation Centre operates in Riga. In the innovation centre
authors of business ideas have opportunity to test their ideas, to receive financial
support, as well as to receive help in attracting customers. The Green Industry
Innovation Centre provides a pre-incubation and incubation services. The objective
of pre-incubation is to ensure the flow of ideas for small scale grant scheme, i.e.
3.5. BUSINESS SUPPORT INSTITUTIONS
Beside municipal services and support activities, entrepreneurs have opportunity
to cooperate with many other public and private support institutions in Riga
that provide various support services for entrepreneurs and investors in Riga or
represent their business interests in the city and beyond it.
The Investment and Development Agency of Latvia (LIAA) is the globally
competitive organization that managed to attract dozens of million euro of direct
foreign investments to Latvia, to conclude export transactions for several dozens of
millions euro and to create hundreds of new job places, also managed to promote
the development of industrial parks, establishment of new research laboratories,
as well as facilitate collaboration in the field of technology transfer. LIAA is one of
the organizations where entrepreneurs have possibility to attract co-financing of
the European Union for their development. It offers a very wide range of services,
including a variety of free of charge seminars for business development, fundraising,
export opportunities, and more.109
State owned JSC “Latvijas Attīstības Finanšu institūcija Altum” (Latvian development
financial institution Altum) offers a wide range of services for entrepreneurs, main
support providing to those directions that contribute to the development of the
national economy and create added value. Within support programmes implemented
by ALTUM, funding can be received by business start-ups and new merchants, as
well as by experienced entrepreneurs who want to develop and to increase business
competitiveness, as well as by farmers for various needs.110
Connect Latvia is an association that connects entrepreneurs with inventors
and investors to create and to develop new and innovative companies in Latvia.
The Association aims to promote establishment and development of new and
innovative businesses, as well as to support commercialisation of innovative
projects, thereby facilitating creation of new and well-paying job places in the
knowledge-intensive industries. The Association organizes different measures that
help entrepreneurs to receive the assistance necessary for the implementation of
the business plan, offer mentoring services and organize measures stimulating
new contacts.111
TechHub Riga supports new entrepreneurs of information technology industry,
The Green Industry Innovation Centre: www.giic.lv/atbalsts
The Investment and Development Agency of Latvia: www.liaa.gov.lv
110
State owned JSC “Latvijas Attīstības Finanšu institūcija Altum” (Latvian development financial institution Altum): www.hipo.lv
111
The association “CONNECT Latvija”: www.connectlatvia.lv
112
TechHub Riga: www.techhub.com
108
The Riga City Council City Development Department. Portal www.investeriga.lv
107
The Riga City Council City Development Department. Portal www.investeriga.lv
106
109
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subsidizing job places, training, providing mentoring services, promoting and
organizing measures stimulating new contacts with industry experts and investors.112
of the University and companies for applying knowledge, technologies and research
competencies, as well as for commercialisation of individual research results.119
The Mill – co-creation space for creative designers and programmers, where
various thematic measures – seminars, lectures and presentations related to design
take place regularly. The basic idea of the Mill is to create a prolific environment for IT
and design joint projects, providing an alternative working environment.113
The Medical Engineering Innovation Centre of Riga Stradins University aims to support
and to promote the development of innovative and knowledge-based businesses in Latvia
in the area of the designing medical appliances and related industries, as well as to facilitate
the commercialization of the research results carried out by Latvian scientists. The Centre
offers to young entrepreneurs the expert consultations on issues related to development
of technological processes of new products and the use of various specific equipment
(digital oscilloscope, multimeter, a programmable power supply, etc.), as well as provides
possibility to use office premises with modern office equipment.120
The Young Entrepreneurs Centre is a foundation whose aim is to promote the
development of entrepreneurship in Latvia, to provide professional advice to emerging
entrepreneurs during the period of establishing a new business. It offers a number of
activities for achieving that – training, individual consultations and thematic seminars
for young entrepreneurs.114
The Latvian Technological Centre provides consultations, research services,
organizes seminars, ensures soft landing services, as well as processes foreign and
local business technology requests and helps enterprises to seek new solutions.
The aim of the centre is to promote development and international cooperation of
technology-driven small and medium-sized enterprises, by using more than 20 years
of experience in business incubation, transfer of technology, commercialization of
knowledge, establishing international business contacts, development of training
programmes, evaluation of innovation systems and elaboration of different level
innovation strategies.115
The Latvia Technology Park is an association that organizes various seminars,
consultations, including about business optimization matters; it also processes
technology demand or supply using science network. Support is available for
technical companies.116
Business incubators of higher education institutions offer for students of the
University of Latvia, the Riga Technical University, the Riga International School of
Economics and Business Administration and the Turiba University to develop and
to realise their ideas by subsidizing premises, training and providing mentoring
consultations.117
The Stockholm School of Economics in Riga Mentor Club, where mentors work
individually with each interested entrepreneur, assessing their business activity,
problems and potential opportunities for development, provide consultations and
recommend specific actions for the business development. Mentors are highly
qualified professionals working in different sectors.118
The Innovation Centre of the University of Latvia aims to promote the involvement
of the University of Latvia as an innovation partner in the development of knowledge
based economy in Latvia, providing collaboration possibilities between researchers
www.arterritory.com
The Young Entrepreneurs Centre: www.juc.lv
The Latvian Technological Centre: www.innovation.lv
116
The Latvia Technology Park: www.ltp.lv
117
Motivation Programme of Innovative Business of the Investment and Development Agency of Latvia. Innovation portal www.innovativelatvia.lv
118
The SSE Riga Mentor Club: www.mentoruklubs.lv
119
The Innovation Centre of the University of Latvia: www.lu.lv
113
114
115
Latvian Chamber of Commerce and Industry is a voluntary, politically neutral association
that brings together micro, small, medium-sized and large enterprises representing various
economy sectors across Latvia. It works in three spheres: the business environment,
competitiveness of companies and export.121
3.6. OPPORTUNITIES FOR MUTUAL BUSINESS COOPERATION
The business collaboration is promoted not only by above mentioned state and local
institutions, but also by specially established associations, centres and federations with
the aim to provide assistance for various types of matters, to represent interests of
entrepreneurs, to establish new contacts and cooperation. Active, knowledgeable and
professional people who are interested in developing a specific industry in Riga and in the
country as a whole are working in such institutions; hence their main mission is to identify
the real situation in the sector, as well as existing problems and circumstances hindering
development, and to take all the necessary and available measures to prevent them, also
to participate in political affairs defending interests of the industry enterprises. With their
work associations contribute to the sustainable economic development of the country.
In Riga, there are dozens of different sector associations and majority of companies
work in a respective business association that has knowledge of a specific sector and
assists in development of the particular enterprise and the sector as a whole.
The Latvian Business Development Centre is an association of companies that
provides a comfortable platform for companies of Latvia where to organise cooperation,
to communicate and to agree on common objectives to be attained, where to receive the
necessary information for business development, to find cooperation partners for joint
projects, as well as to receive professional expert advice in export, marketing, finance,
human resource management and other areas. The centre was formed aiming to provide
support for strengthening business environment and for raising competitiveness of local
companies in the local market and abroad.122
The Association of Small and Medium Enterprises of Latvia was established with the aim
to defend interests of micro, small and medium-sized enterprises in relation to insufficient
support of different aid instruments particularly for existing successful companies, as
well as, insufficient support for new companies. One of the objectives of the association
is building a dialogue with representatives of various national institutions to defend the
interests of SMEs.123
The Medical Engineering Innovation Centre of Riga Stradins University: www.rsu.lv
The Latvian Chamber of Commerce and Industry: www.chamber.lv
The Latvian Business Development Centre: www.luac.lv
123
The Association of Small and Medium Enterprises of Latvia: www.lmvasociacija.lv
120
121
122
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Sector associations
The Baltic Association – Transport
and Logistics was established in order
to participate in development and
adjustment of the transit policy in Latvia
and in the European Union, to represent
the interests of the industry in the political
process and business interests in relations
with state and local institutions, to create
and to strengthen cooperation with
institutions and organizations in countries
where main shippers are operating, etc.
The association represents common
interests of transport and stevedore
companies in business relations with the
state, municipalities and their institutions,
including the free port management, in
order ultimately create a long-term transit
industry development policy in Latvia.
The Latvian Builders’ Association
works to unite construction professionals
for
successful
and
sustainable
development of the construction industry
in Latvia and also abroad. An aim of
the association is to consolidate and to
protect interests of its members in labour
market of the construction industry,
in economic matters and in relations
between employers and employees,
as well as in relations with customers.
Tasks of the association include active
participation in elaboration of proposals
for industry development concepts and
strategies, in forming vocational education
system of industry experts, as well as
in the preparation and improvement of
legislation.124
The Association of Electricians and
Energy Engineers of Latvia unites both
legal and natural persons who work in the
industry. The aim of the association is to
unite its members in order to promote the
comprehensive development of Latvian
electrical power and energy engineering
sector according to the latest world
standards and the common technical
policy, to ensure successful work of its
members in labour market of electrical
power and energy engineering sector and
to protect their material and moral interests,
and to promote the work of members of the
associations and to raise its prestige.125
The Latvian Electrical Engineering and
Electronics Industry Association unites
companies, research and educational
institutions registered and work in Latvia
and are related to sector of electronics
and electrical engineering, optical
equipment, information technologies and
electronic communications equipment,
defence equipment, aviation and space
technologies, in order jointly define and
defend their interests, as well as promote
sector consolidation, development and
promotion.126
The
Latvian
Information
and
Communications Technology Association
brings together organisations and
individual members who work in the
sector. The association represents
members’ interests both in the legislative
field, and actively responding to current
events in Latvia, and it serves the sector
representative on the international circuit.
Its aim is to promote the development
of the sector and to increase its
competitiveness.127
Latvian Forest Industry Federation
aims to promote the development
of the forest industry in Latvia, in
cooperation with interested institutions,
to build a sustainable, stable economic
environment for development and
raising competitiveness of forest industry
companies and to ensure international
representation of interests of forest
industry of Latvia, as well as development
and coordination of activities of the
association.128
The main activity directions of the
Association of Latvian Chemical and
Pharmaceutical Industry is participation
in elaboration of proposals for the sector
business development concept and
strategy, in elaboration and improvement
of the industry legislation providing position
on state institutions developed legislative
projects, as well as, representation of
interests of members of the association in
state and local institutions, and in relations
with employees’ organizations (trade
unions) and other legal and natural persons,
and promotion of the association and its
members for raising their prestige in Latvia
and abroad, participation in development of
vocational education and training system
of industry professionals, etc. Members
of the association are leading and largest
companies in the sector.129
The Latvian Federation of Food
Companies unites food companies and
professional
associations,
represents
manufacturers in national and nongovernmental organisations, and defends
interests of members in elaboration of the
national and international normative acts,
as well as provides informative support for
members of the federation. The federation
unites companies which make up to more
than 60 % of all Latvian food market. It is
represented by industry associations and
several dozens of large, medium and small
companies. The aim of the federation is
successful and sustainable development of
food processing industry in Latvia and high
competitiveness of food manufacturers of
Latvia in foreign markets.130
The Association of Latvian Printing
Companies brings together 46 legal
persons whose business is related to the
printing industry: the production of printed
products, trade of printing equipment
and materials, vocational and continuing
education of the sector. The aim of the
association is to represent the common
interests of members of the association, to
promote development of printing industry in
Latvia, to create a favourable public opinion
about printing industry, and to promote the
education of printing sector in the country.131
The Latvian Traders’ Association brings
together more than 600 companies whose
main business is trade, catering and services.
Its mission is to promote the development and
strengthening of its members.132
The Latvian Builders’ Association: www.latvijas-buvnieku-asociacija.lv
125
The Association of Electricians and Energy Engineers of Latvia: www.bleea.lv
126
The Latvian Electrical Engineering and Electronics Industry Association: www.letera.lv
127
The Latvian Information and Communications Technology Association: www.likta.lv
128
The Latvian Forest Industry Federation: www.latvianwood.lv
129
The Association of Latvian Chemical and Pharmaceutical Industry: www.lakifa.lv
The Association of Hotels and
Restaurants of Latvia is an association
that brings together accommodation and
public catering companies for professional
collaboration. A mission of the association is
to improve the quality of customer services,
to improve Latvian hotel and restaurant
market and to represent the hotel and
restaurant business of Latvia globally.134
The
Association
of
Mechanical
Engineering and Metalworking Industries of
Latvia unites entrepreneurs, professionals
of the industry and other interested
natural and legal persons to promote the
development of the sector, to facilitate
mutual cooperation and professional
growth of industry experts.135
The Latvian Association of Light
Industry Enterprises aims at promoting
the development of industry companies
facilitating their entering in new markets and
participation in exhibitions, by organising
mutual cooperation, training for industry
professionals, helping to establish contacts
with entrepreneurs of other countries,
defending interests of industry companies
in national and international institutions,
as well as in the Textiles Committee of
the European Union, regularly analyzing
changes in the textile and clothing export
and import per product group and per
country, as well as issuing permissions
(licenses) to companies confirming that
an exported product was produced in the
Republic of Latvia.136
The Latvian Federation of Food Companies: www.lpuf.lv
The Association of Latvian Printing Companies: www.lpua.lv
The Latvia Traders’ Association: www.lta.lv
133
The Association of Latvian Travel Agents and Operators: www.alta.net.lv
134
The Association of Hotels and Restaurants of Latvia: www.lvra.lv
135
The Association of Mechanical Engineering and Metalworking Industries of Latvia: www.masoc.lv
136
The Latvian Association of Light Industry Enterprises: www.atci.lv
130
124
The Association of Latvian Travel Agents
and Operators is a professional public
organization that brings together tourism
agents and operators in order on the basis
of equality within the laws and the statutes
of the association to form a common
governing body that would coordinate
travel agents and operators, defend their
interests and represent tourism business of
Latvia globally.133
131
132
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3.7. INTERNATIONAL COOPERATION OPPORTUNITIES
Latvia is a country with a high human development index and is rather developed
country at the global level, as well as is a rightful member state of economic
and political international organizations. Responsible representatives of the state
actively participate in various decision preparation and decision making processes,
including processes related to entrepreneurship, investments and innovations.
Latvia is a member state of 15 international organizations.
The Republic of Latvia has 44 diplomatic and consular representations: 37
embassies, 6 permanent representations, 1 consulate general and 2 consulates.
In 2015 Latvia has 178 honorary consuls and 16 honorary consuls general in
foreign countries.137
In Riga there are branches, representative offices and headquarters of several
global organizations:
• The European Commission Representation, that is a part of the DirectorateGeneral for Communication of the European Commission;
• The European Parliament Information Office;
• The Body of European Regulators for Electronic Communications (BEREC);
• The Nordic Council Ministers’ Office;
• The International Organization for Migration;
• The United Nations House, which is also a home for representations of the
International Organization for Migration and the World Health Organization;
• The European Investment Fund;
• Culture centres and institutes of several countries.
Moreover, the Riga municipality is a collaborative partner and regularly participates
also in work of the following international organizations and institutions:
• The Baltic Metropolises Network (BaltMet);
• The Union of the Baltic Cities (UBC);
• The EUROCITIES (the network of major European cities);
• The Network of European Metropolitan Regions and Area (METREX);
• The European Committee on Local and Regional Democracy (CDLR);
• The Congress of Local and Regional Authorities of the Council of Europe
(CLRAE);
• The association on sustainable local energy policy promotion of European
cities (Energy-Cities);
• The European city network “Cities for Children”;
• The Committee of the Regions of the European Union (CoR);
• The United Nations Educational, Scientific and Cultural Organization
(UNESCO);
• The European Association for Hydrogen and fuel cells and Electro-mobility in
European Regions (HyER)
• Modern Alliance of Hanseatic cities (Städtebund DIE HANSE).
• The European peoples’ culture and art festival Europeade;
The Ministry of Foreign Affairs of the Republic of Latvia. Embassies and representations. Available: www.mfa.gov.lv
137
• International Council for Local Environment Initiatives (ICLEI);
• The Organization of World Heritage Cities (OWHC) and other organisations.
In 2014 the Foreign Affairs Office of the Riga City Council coordinated and
organized 223 foreign mission visits of officials and employees of the Riga City
Council and ensured 65 receptions of foreign delegations in Riga, including in 15
international events taken place in Riga, as well as it provided support for events
of different types and importance in Norrkoping, Pori, Kobe, Moscow, and other
cities.138
The Nordic Council of Ministers (NCM) is a part of the Secretariat of the Nordic
Council of Ministers in Copenhagen, whose mission is to promote cooperation
between Nordic countries and Latvia. NCM Office in Latvia closely cooperates with
national and non-governmental institutions and the Nordic diplomatic missions, in
order to implement the common Nordic initiatives. NCM Office in Latvia promotes
and implements projects related to the Nordic countries, and perform a wide range
of Nordic and Baltic cooperation. The Office also serves as the administrator of
projects, including the Nordic and EU projects or joint Nordic-Baltic projects, and
it is responsible for practical work and quality assurance.139
Latvia received the status of the Member State holding the Presidency of the
Council of the European Union on 1 January 2015, taking the baton from Italy. Six
months period of managing work of the Council of the European Union was time
of opportunities and challenges.
The opportunities were related to the new institutional cycle that began
shortly before the Latvian presidency, when new composition of the European
Parliament and the European Commission began to work. Elected in November
2014 the European Commission launched elaboration of new proposals that were
submitted for approval to the European Union legislators: The EU Council, chaired
by the Presidency, and the European Parliament. The Latvian Presidency took
this opportunity actively putting forward detailed legislative proposals and policy
initiatives of the European Commission. The new institutional cycle also allowed to
approve five strategic priorities for the work of the European Union for the next five
years, thus moving towards to more targeted EU action.
The main challenges of the Latvian Presidency were related to situation in the
security field in the European Union, its neighbourhood and in the world overall. The
situation in Ukraine, the reaction of the European Union to the Crimean annexation
dominated in all past year meetings of the member states and in meetings of
the heads of governments. Considerable challenges to international security were
and still exist also in other regions such as the Middle East and the North Africa.
Moreover, in the beginning of the year we faced new challenges to the security
of the European Union revealing the weak spots of the EU in the fight against
terrorism.
Referring to the domestic policy of the European Union, at a time when Latvia
Riga Municipality Annual Report 2013.
The Nordic Council of Ministers: www.norden.lv
138
139
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took over the management of the Council of the European Union from Italy, the
socio-economic situation of the European Union and the discussion on growth
and employment promotion were kept high in the agenda of the European Union.
The fragile growth showing the risk of stagnation, low inflation, and notable
unemployment rates led the European Union to seek growth-enhancing solutions.
In this year, economic situation in the EU has improved and the growth will be in
almost all the EU Member States, although the consequences of the financial and
economic crisis in 2008 is still not fully overcome.
USEFUL INFORMATION
Government institutions
www.am.gov.lv
The Ministry of Foreign Affairs of the Republic of Latvia
www.em.gov.lv
The Ministry of Economics of the Republic of Latvia
www.liaa.gov.lv
The Latvian Investment and Development Agency
www.ur.gov.lv
The Register of Enterprises of the Republic of Latvia
As it was expected, during the Latvian presidency the European Union faced
considerable migration pressure, mainly affecting the Member States of the EU in
the South. However, the scale of the migration flow was unexpectedly high. During
the first months of this year more than 150 000 asylum seekers came to the EU.140
www.varam.gov.lv
The Ministry of Environmental Protection and Regional Development
of the Republic of Latvia
www.vid.gov.lv
The State Revenue Service of the Republic of Latvia
The largest companies of different countries and representing industries that
have made considerable investments in Latvia are united in the non-governmental
organization – the Foreign Investors’ Council (FICIL). Apart companies, the council
members are also representatives of nine national chambers of commerce in Latvia.
The FICIL is currently represented by 22 companies whose direct investments in
core capital of enterprises registered in Latvia is amounted approximately 40 % of
total foreign direct investments in Latvia. An aim of the council is to promote the
Latvian business environment and to facilitate foreign investments in Latvia.141
Institutions of the Riga Municipality
The Investment and Development Agency of Latvia (LIAA) not only cooperates
with state and municipal authorities favouring the development of entrepreneurship
in the domestic market, but also is active in foreign marketing and in European
business support network events. As its main task LIAA considers the raising
competitiveness of enterprises of Latvia that is especially relevant since accession
of Latvia in the European Union and its integration in European common market. The
agency disseminates information abroad about economy, industries, companies,
projects, products, and services of Latvia, organizes visits of enterprises abroad
during visits of senior officials, also business days, trade missions and business
contact exchanges, as well as ensures search of potential cooperation partners
abroad, establishes contacts and arranges business visits of potential partners
and investors.142
Industry associations
Already now Riga is considered as a major cross point between the West and
the East, as not only local and national level, but also international level business
events of different sectors and types are organised here. In perspective centralized
offices of various institutions operating at the European Union, the Baltic States,
and the Nordic and Russian markets could be located in the city.
The Secretariat of the Latvian Presidency of the Council of the European Union: www.es2015.lv
The Foreign Investors’ Council in Latvia: www.ficil.lv
142
The Investment and Development Agency of Latvia: www.liaa.gov.lv
140
141
www.riga.lv
The Riga municipality
www.rdpad.lv
The Riga City Council City Development Department
www.investinriga.com The Riga City Council City Development Department
www.rpbv.lv
The Riga City Building Authority
www.liveriga.lv
The Riga Tourism Development Bureau
www.chamber.lv
The Latvian Chamber of Commerce and Industry
www. masoc.lv
The Association of Mechanical Engineering and Metalworking Industries of Latvia
www.alta.net.lv
The Association of Latvian Travel Agents and Operators
www.atci.lv
The Latvian Association of Light Industry Enterprises
www.bleea.lv
The Association of Electricians and Energy Engineers of Latvia
www.ficil.lv
Foreign Investors’ Council
www.lakifa.lv
The Association of Latvian Chemical and Pharmaceutical Industry
www.latvianwood.lv
The Latvian Forest Industry Federation
www.latvijas-buvniekuasociacija.lv
The Latvian Builders’ Association
www.letera.lv
The Latvian Electrical Engineering and Electronics Industry Association
www.lidere.lv
The association “Lidere”
www.likta.lv
The Latvian Information and Communications Technology Association
www.lmvasociacija.lv The Association of Small and Medium Enterprises of Latvia
www.lpua.lv
The Association of Latvian Printing Companies
www.lpuf.lv
The Latvian Federation of Food Companies
www.lta.lv
The Latvian Traders Association
www.luac.lv
The Latvian Business Development Centre
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RIGA CITY COUNCIL CITY
DEVELOPMENT DEPARTMENT
Amatu street 4, Riga, LV-1050, Latvia
Telephone: +371 67012947
[email protected]
www.rdpad.lv
@rdpad
RDPilsetasattistibasdepartaments