The Economic Profile of the City of Riga 2018 RIGA2018. The Economic Profile of the City of Riga

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1 RIGA2018 The Economic Profile of the City of Riga 1

2 WHY RIGA? The geographically strategic location of the city The main transport node between the West and the East, providing access to the European Union and its Eastern markets in Russia, the Commonwealth of Independent States and Asia. Convenient international traffic infrastructure from from cities cities from Russia, Belarus and Estonia Open and safe city for investments from Sweden Macroeconomic and political stability Latvia is a member state of the European Union and the Eurozone that ensures the free movement of goods, services, capital and labour. In recent years, the growth in Latvia is one of the fastest in the European Union. Latvia is a full member in all the world s major economic and political organizations, including the North Atlantic Treaty Alliance (NATO) and the World Trade Organization (WTO). In 2016 Latvia also became a full member of the Organisation for Economic Cooperation and Development (OECD). 19 th Latvia In the Ease of Doing Business Index of the World Bank Doing Business 2018 Concision of business resources 50% The newly produced value in the city of Riga is around 50 % of all the produced in Latvia. Riga has a dominant role in the economy and in the business of Latvia. The major national higher education institutions and public administration institutions are located in Riga, Riga is a transport highway node, and the international airport and the unfreezing port are located herein. According to the data on population, Riga is the largest city in the Baltic States. 3 million inhabitants live within the coverage area of the Riga International Airport (3 hours long drive from the airport). Skilled and competitive labour Higher education and science centre thousand students of higher education institutions and colleges In five years time, the number of foreign students has increased more than twice % 10% 2 x higher education institutions and colleges from all students in Latvia foreign students Educated labour. 47 % of the population of Riga has higher education and 28 % vocational education or professional secondary education. Multilanguage speaking labour. 95 % of the population speak at least one foreign language, 54 % at least two foreign languages, and 13 % at least three foreign languages. 70% of the population of Riga till 40 years speak English. High quality of life and pleasant living environment The cost of living in Riga is one of the lowest among capital cities of the member states of the European Union. Riga has notable living environment advantages low noise level, convenient and affordable public transport, clean city, low crime rate. Pleasant climate summers in Riga are moderately warm (average temperature in summer months does not exceed 20 C C) and winter months are also relatively warm (average temperature in winter months is not lower than 0 C) average in winter average in summer 4 1

3 CONTENT 1 WHY RIGA? 19 MACROECONOMIC ENVIRONMENT 4 CONTENT 23 LABOUR MARKET 6 DEVELOPMENT OF THE CITY OF RIGA 26 REAL ESTATE 8 LOCATION 27 BUSINESS: START-UP 9 NATURE AND CLIMATE 29 BUSINESS: DEVELOPMENT 10 ACCESSIBILITY 32 PORT OF RIGA 12 QUALITY OF LIFE 34 RIGA INTERNATIONAL AIRPORT 14 POPULATION 36 ICT 16 EDUCATION AND SCIENCE 38 TOURISM 17 CULTURE 40 RIGA IN THE WORLD Publication of the Riga City Council City Development Department, 2018 Data from the Central Statistical Bureau are used in this publication, unless it is indicated otherwise. 2 3

4 DEVELOPMENT OF THE CITY OF RIGA 1 1 The information from the website of the municipality of Riga and publications Chronicle of Latvian literature with events in Latvia and in the world , The most important events in the history of Latvia and Riga The first horse omnibus route was developed The current building of the Latvian National Opera was built Riga was founded by the German Bishop Albert, but settlements existed here already in the 12th century The first six-stored rental house was built The first ambulatory medical establishment leprosery was established The Riga railway station and the first railway line Riga-Dinaburg (Daugavpils) was founded The electro-technical factory Union was established (later becoming VEF) The first electric tram was launched The Riga Zoo was founded. On November 18, 1918 the independence of the Republic of Latvia was proclaimed in Riga The University of Latvia was founded The National Theatre building was built The Bank of Latvia started to work The construction of the airport Riga was completed The Riga Coach station was opened The first TV show broadcast VEF started to produce a photo-camera Minox The Riga Central Market was opened Latvia regained independence from the Soviet Union The Riga Central Railway Station complex was built The Riga Film Studio was founded The first airline (Riga-Liepaja) was launched Riga celebrated its 800 year anniversary Eurovision Song Contest in Riga Latvia joins the European Union The NATO Summit in Riga The title of European Capital of Culture was awarded to Riga Official events of Latvia s presidency of the Council of the European Union was held in Riga anniversary of Latvia s proclamation is widely celebrated in Riga and across the country. 4 5

5 In the Sustainable Development Strategy of Riga we have defined that in 2030 Riga will be internationally recognisable metropolis with high quality of life, innovative economy, smart and efficient management of the resources, and modern administration with active participation of the citizens. Already now the municipality is actively working to ensure an effective business climate, the qualitative urban environment and high quality of life for its residents and entrepreneurs. European Start up Initiative survey carried out among companies founders shows that Riga is one of TOP10 cities with fastest growing start-ups. In order to enhance attractiveness of Riga for creative and innovative minds, work is being done in Tornakalns to develop the science and innovation centre till 2030 contributing to the synergy between science and business. It is planned that in the next seven years this area could become the largest campus in the Baltic States. Till the year 2021 in the modern centre of Riga Skanste s neighbourhood it is planned to develop the conference and concert centre of Riga. Having in regard the international competitiveness of Riga International Airport and easy and quick access from the city centre, we are convinced that Riga will become the perfect venue for conferences, congresses and corporate events in the Northern Europe. Attractiveness of Riga as investment destination is also demonstrated by varied large-scale investment projects, for example, in 2018 the store of IKEA and adjacent territory will be opened where the total investments exceed 80 million euro. In 2017 the global business process outsourcer and customer service company Webhelp (France) opened a new customer service centre in Riga. A retail store network Rimi will invest 75 million euro in the construction of the logistics centre in Riga, and it will be the largest building that was built during the independence time of Latvia. In the next four years, it will become the most significant logistics centre of the Baltic States. In 2018, Latvia celebrates the centenary of its independence. The capital city Riga actively participates in the preparation of the celebration. In the city the infrastructure is being improved, activities of neighbourhood communities are supported, a wide and varied celebration events are offered for residents and guests of the city. We are inviting to visit Riga, to meet in Riga, to invest in Riga and to become residents of Riga! Nils Ušakovs Chairman of the Riga City Council 6 7

6 LOCATION NATURE AND CLIMATE The capital city of the Republic of Latvia. Riga L A T V I A The climate of Riga is 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. Summers in Riga are moderately warm (the average temperature in summer months does not exceed 20 C) and winter months are also relatively warm (the average temperature in winter months is not lower than 0 C). Helsinki Stockholm Tallinn Baltic Sea Riga Vilnius Warsaw Minsk The centre of the Baltic States region The largest city in the Baltics The third largest city in the Baltic Sea region Climate in Riga February July Average air temperature C Number of days with precipitation The area Riga 304 km 2 Vilnius 300 km 2317 Distance from Riga to the nearest European capital cities Tallinn 310 km Helsinki 844 km The population density Stockholm inhabitants/ km km Warsaw 660 km Berlin 840 km Moscow 920 km Sunshine hours The terrain The terrain of Riga is mostly flat and gently sloping, and its relative height is 1-11 m above the sea level. Green territories 61 Dzegužkalns 256 Judging by the size of the green area, Riga can be considered as one of the greenest capital cities in Europe large forest areas and parks 40% of the total area of the city parks squares cemeteries lakes and ponds Pļavnieku kalns km 2 blue territories km 2 green territories 8 9

7 ACCESSIBILITY Riga is an important regional transport and logistics centre between the West and the East providing access to the European Union as well as to Eastern markets in Russia, the Commonwealth of Independent States and Asia. Riga is accessible by plane from more than 80 cities around the world, by train from Russia, Belarus and Estonia, by ferry from Sweden, by bus from more than 100 cities in Europe. Riga is the biggest Latvian port and the second largest port in the Baltic countries by cargo turnover. The Riga Freeport provides direct connections to the main cargo consumption centres and production processing regions in Russia and the Commonwealth of Independent States. The Riga International Airport is the leading airport in the Baltic States and this region s main air hub. The company serves almost half of all passengers of the Baltic States, and the broadest range of direct destinations are available from Riga International Airport comparing with the other airports of the Baltic States. Riga International Airport Summer destinations Winter destinations Riga International Coach Terminal 3 3 Riga International Coach Terminal. Annual report The Port of Riga 4 4 Freeport of Riga. 5,4 million Number of passengers a year Total number of ferry passengers served Servicing almost half of all passengers of the Baltic States Transfer/ transit passengers 14 domestic passenger operators 17 international operators Number of cruise ship passengers 27% The most popular destinations are London, Moscow, Oslo, Frankfurt and Helsinki 2 Riga International Airport. Annual report domestic bus runs a day on average 80 international bus runs a day on average 653 Number of ships served 63 Number of cruise ships entering the port Railway Public transport in Riga 5 55 bus routes 19 trolley-bus routes 9 tram routes parking lots million 3 electric train domestic routes dieselengine train domestic routes The number of domestic passengers transported a year international routes (Moscow, Minsk, St. Petersburg) 143 Passengers of trams, trolley-buses, buses a year 10 Mikroautobusu pasažieri Since 2011 Rail Baltica project is being implemented with the aim to restore the Baltic States direct link with the European railway network, connecting metropolitan Tallinn Riga Kaunas Warsaw Berlin. By implementing the Rail Baltica project the high-quality railway connection between the Baltic States and major Western European economic, administrative and cultural centres will be ensured. Thanks to the new railway network not only railway capacity will be increased, but also the speed will be improved, while the passengers will have the opportunity to reduce the duration of their journey. For more information: million million 5 RP SIA Rīgas satiksme. Annual report

8 1 2 QUALITY OF LIFE The most positive aspects of life quality in Riga Characteristics of the living standards in Latvia Good housing at affordable price Availability of cultural events Low noise level Accessible public transport Availability of general education Cleanliness in the city The UN Human Development Index In the UN Human Development Index, Latvia is ranked in 44th place among 188 countries, and it is classified as very high human development country EUR Gross domestic product per capita 74.3 Life expectancy 380 EUR The minimal monthly salary 66.3 Price level index (EU 28 = 100) 4 % The unemployment rate in Riga 971 EUR Employees average monthly gross wage in Riga Accessibility of green area (parks, boulevards, squares) The average retail price of certain products in 2016, EUR 6 Beef, 1 kg 4.81 Milk, 1 litre 0.72 Hard cheese, 1 kg 7.17 Potatoes, 1 kg 0.42 Rye-wheat bread, 1 kg 1.12 Eggs, Ground coffee, 1 kg Beer < 5.5%, 1 litre 1.9 Diesel, 10 litres 9.5 Electricity, 100 kwh Low crime rate/ security in the city 6 Human Development Report. United Nations. Pieejams: The cost of living in the capital cities of EU member states, EUROSTAT data (Brussels=100) m 2 The average housing area in Riga 1.1 Number of rooms per household in Riga EUR Total housing expenditure per household a month in Riga 7 EUROSTAT

9 POPULATION Riga is the largest city in the Baltic States. 32% of total population of Latvia lives in Riga and it is the highest indicator among the European Union member states. 8,9 8 The Office of Citizenship and Migration Affairs. 9 EUROSTAT Urban audit thousand people Number of new-borns in Riga The population of capital cities of the EU member states 10 The total number of households, and average size of households in Riga in 2017 The total number of households, thousand The proportion of nationalities in Riga, 2017 Born in Riga The average size of households, persons 1% 6% Lithuanians 2% Poles 3% Ukrainians 4% Belarusians 37% Russians 47% Latvians Other nationalities Mariss Jansons (1943), Latvian conductor Artūrs Irbe (1967), Latvian hockey goalkeeper Alvis Hermanis (1965), Latvian actor, theatre and opera director EUROSTAT. The most popular names of new-borns in Riga Elīna Garanča (1976), Latvian opera singer Jeļena Prokopčuka (1976), Latvian athlete, marathonist Martins Dukurs (1984), Latvian skeletonist Roberts Aleksandrs Artjoms Gustavs Kārlis Sofija Anna Emīlija Marta Alise Mairis Briedis (1985), Latvian boxer Gidons Krēmers (1947), Latvian and German violinist and conductor Mihails Barišņikovs (1948), Soviet and American ballet dancer, actor 14 15

10 The Economic Profile of the City of Riga 2018 CULTURE EDUCATION AND SCIENCE cultural activities pre-school educational institutions children school children students of high schools and colleges students receive vocational education 40% 80% of all vocational education students in Latvia of all students in Latvia events tickets sold14 municipality financed and co-financed private sector financed Riga City Council s Education, Culture and Sports Department. The Ministry of Culture. The study on the effects of the application of VAT to the sector of culture. 40% Education possibilities in Riga general education institutions high schools and colleges interest education institutions sports schools music and art schools leisure time centres childcare centres sports arenas located at education institutions regional sports centre Certus Think Tank. buildings are art nouveau buildings in the centre of Riga pre-school education institutions Riga City Council s Education, Culture and Sports Department The number of international students in Latvia In Pardaugava (on the left side of the river Daugava), till year 2030 it is planned to develop the science and innovation centre, which will contribute to the synergy between science and business and will give impulse to the development not only for Riga, but for the whole Latvia. It is planned that in the next seven years this area could become the largest campus in the Baltic states, taking up to 4 5 km2 large area and gathering together around thousand students. 16 visitors13 The historic centre of Riga is included in the UNESCO World Culture Heritage list. amateur groups 177 municipal 102 other amateur groups 17

11 Culture-related art groups in Riga amateur theatres 54 dance groups 18 folklore groups 4 photo and cinema studios 80 choirs 20 orchestras, instrumental groups and chapels 39 applied arts studios 44 vocal groups 15 Riga City Council s Education, Culture and Sports Department. The data bases of art groups. MACROECONOMIC ENVIRONMENT Latvia is a full member in all the world s major economic and political organisations. EU NATO WTO The major cultural events in Riga in New Year's Eve celebration Easter events and concerts For more information: Events dedicated to the Independence Day of the Republic of Latvia Museums night Lattelecom Riga marathon Riga Opera Festival International Folklore Festival Baltica Midsummer Fair in Dome Square in the Old Town Midsummer Night celebration in 11th November Embankment and in Dzeguzkalns Latvian XXVI Song Festival and XVI Dance Festival Riga City Festival Contemporary culture forum White Night Centenary Celebration of the State of Latvia in Riga Staro Riga Light Festival Christmas markets in Riga 16 Riga City Council s Education, Culture and Sports Department. In 2018, Latvia celebrates the centenary of the independence. Celebration events take place five years from 2017 to 2021, culminating in In total 99 projects are included in the programme of the city of Riga on the Latvia s centenary celebration. Infrastructure are being improved in the city reconstruction of Mezaparks Open-Air Stage, VEF Culture Palace, construction of the multifunctional sports and recreational complex on Kr. Barona Street 116a, etc. Furthermore, tourism offer also is improved 100th bus centenary route, Retro tram LV 100, etc. Organised broad culture events programme, activities for children and young people, as well as major sports events important for Latvia uniting sportsmen and sportswomen of different nationalities and age. The Riga Film Fund The Riga municipality co-financed programme Riga Film Fund aims to encourage shooting of foreign films in Riga and Latvia. Under this programme several projects have been implemented in cooperation with film industry representatives of Great Britain, Germany, Denmark, Russia, Japan, India, Finland, and other countries. The European Union OSCE Organisation for Economic Cooperation and Development The North Atlantic Treaty Organization UN The United Nations The Index of Economic Freedom World average 60.0 Latvia Latvia is ranked in the 20 th place among 180 world countries in the Index of Economic Freedom. World Trade Organisation OECD The Organization for Security and Cooperation in Europe The Heritage Foundation. Index of Economic Freedom th Economic Freedom For more information:

12 The ease of doing business index In the World Bank Doing Business 2018 study, Latvia stands at high 19th place in the ranking of the ease of doing business index ,5% the proportion of Riga agglomeration in the total GDP of Latvia Regional Average (OECD high income) 8 The assessment of favourable business climate Global Innovation Index Riga The figures of Latvia in the World Bank Doing Business 2018 study 18 Resolving insolvency (53) Starting a business (21) Dealing with construction permits (49) Gross domestic product, million EUR Enforcing contracts (20) Getting electricity (62) Trading across borders (25) Registering property (22) * 2019* 2020* Paying taxes (13) 18 The World Bank. Doing Business Protecting minority investors (43) Getting credit (12) The Global Innovation Index 2017: Innovation Feeding the World 20 The Ministry of Finance. *The forecast of the Ministry of Finance 20 21

13 Total Tax Rate (profit taxes, labour taxes, other taxes), % Regional average 21 PwC, the World Bank and International Finance Corporation. Paying Taxes State Treasury. Factors supporting Latvia s credit rating 22 Credit rating of Latvia S&P A- (positive) Moody`s A3 (stable) Consumer price index, % * * * 2.1 *The forecast of the Ministry of Finance stability in the banking sector the low level of government debt membership in various EU institutions, including accession to the OECD execution of the state budget and adherence to fiscal policy Fitch A- (positive) R&I Baa1 (positive) LABOUR MARKET Economically active residents Employed population % % People working in Riga (approximate calculations, thousand) Work in Riga, live somewhere else 23 Calculations based on the data of the Central Statistical Bureau and EUROSTAT % 24 The State Employment Agency. Work in Riga, live in Riga 433 Total number of those who work in Riga 17 Work somewhere else, live in Riga Unemployment rate % 22 23

14 Proportion of economically active residents of Riga by education level 47% Higher education 4% Primary education or lower than primary education 25 The World Economic Forum. 39.6% The average monthly gross salary of employees in Latvia, EUR % Vocational education or vocational secondary education 21% General secondary education proportion of knowledge-intensive job places * 2019* 2020* 26 The Ministry of Finance. *The forecast of the Ministry of Finance. People employed in Riga by economic activity, the annual average for the period from 2010 to 2017, % 1 Agriculture, forestry and fishing 21 6 Health and social care 6 Public administration and defence; compulsory social security 7 Construction 9 Education 13 Processing and mining industry and other sectors of production Trade, accommodation and food services 16 Financial, insurance, scientific, administrative services; real estate activities 16 Transport, storage, information and communication services The average monthly gross salary of employees in Riga by kind of activities, EUR Financial and insurance activities 1846 Electricity, gas, steam and air conditioning supply 1511 Information and communication services 1440 Agriculture, forestry and fishing 1222 Public administration and defence; compulsory social security 1125 Professional, scientific and technical services 1023 Water supply; sewerage, waste management and remediation activities 954 Transport and storage 924 Processing industry 885 Construction 884 Health and social care 874 Wholesale and retail trade; repair of motor vehicles and motorcycles 859 Real estate activities 847 Arts, entertainment, and recreation 823 Administrative and support service activities 802 Education 780 Accommodation and food services 625 Mining and quarrying

15 REAL ESTATE Housing of residents of Riga BUSINESS: START-UP European Start up Initiative survey carried out among companies founders shows that the Baltics is one of the most attractive area for business start-ups. 7% mansions or estates 5% residential houses with up to 9 apartments 88% apartment buildings with 10 dwellings or more Riga22nd place as the most attractive city for establishing a company European Start up Initiative. Startup Heatmap Europe. Housing fund in Riga Total area, thousand m 2 Office premises 27 Total area per permanent capita, m 2 Retail premises in shopping centres Number of newly build residential buildings Newly build residential buildings, thousand m 2 Industrial premises in Riga Budapest Sofia Milan TOP10 European cities with the fastest growing start-ups Inc Europe Riga Helsinki Paris Bucharest Bratislava Number of start-up companies in Riga 30 Stockholm London 4-5% Share of free Class A 7-8% Share of free Class B1 7.1% 4.9% Share of free retail premises in shopping centres Payment for rent Share of free warehouse premises Lursoft Latvia is the first among the Baltic States that has adopted a special start-up law that defines the types of support for newly established enterprises (special tax rates, the aid schemes to attract highly qualified employees). 1 Class A Class B EUR/m 2 EUR/m EUR/m 2 27 Colliers International. Baltic States Property Snapshot. The Latvian start-up business association is a non-governmental organisation which unites more than 50 Latvian start-up companies and whose aim is to develop the ecosystem of Latvian start-ups. After initiative of the association in 2016 the Parliament (Saeima) adopted the Law on Aid for Start-up Companies. For more information:

16 Major start up industry events TechChill Riga Venture Summit Startup Slalom BUSINESS: DEVELOPMENT Since 2019, the Riga City Council implements a grant programme Atsperiens (Take-off) aiming to promote the establishment of new, innovative companies and innovative development of existing companies in Riga. Within the programme 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, website development, specific employees training, creating marketing materials, costs of rent and improvements of premises, etc. The maximum grant available for one merchant is EUR. Riga is the most active business region in Latvia For more information: For more information: /biznesa inkubatori The most popular start-ups The creative industries business incubator of the Investment and Development Agency of Latvia was established especially for creative industries companies. It provides 50 % co-financing for different services and grants, as well as 100 % support for pre-incubation services. Those applicants that are working in creative industries sectors: architecture, design, cinematography, performing arts, visual arts, music, publishing, television, radio and interactive media, advertising, computer games and interactive software, cultural heritage, culture education, recreation, entertainment and other cultural activities may apply for joining the incubator. economically active companies Companies per people 58% of all commercial companies registered in Latvia are located in Riga infogr.am infogram.com Data visualisation solutions AirDog airdog.com The Autonomous Action Sports Drone Edurio com/ Quality monitoring for education agencies MolPort Printful printful.com Printing company 86 > 112 Latvia Riga Zoomcharts zoomcharts.com Data analyses platform For more information: About establishing and registration of a company About taxes About laws and regulations About support for entrepreneurship About doing business in Riga About start up community Catchbox Soft and throwable wireless microphone for conferences, events and lectures Twino twino.eu One of the best alternative financial service provider in Europe The Register of Enterprises The State Revenue Service: Latvian Investment and Development Agency: Sonarworks sonarworks.com Audio technology, sound calibration software Number of companies in Riga by main kind of activity Services Trade Construction Industry Health protection Education Financial and insurance activities Agriculture, forestry and fisheries 756 Environment and energy

17 Sectoral development assessment, the Bank of Latvia 31 Sustainable growth Processing industry Strong recovery Construction Stabilization Transport Further increase in market activity Real estate More vigorous development Trade 80% the proportion of Riga in the total foreign direct investments of Latvia 31 The Bank of Latvia. Macroeconomic Developments Report The international trade fair for mechanical engineering, metalworking, automation, electronics, electrical engineering, industrial supplies, tools and innovated technology Tech Industry in Riga is the biggest and most important project for industrial production in the Baltic States. More than 270 companies from the Baltics, Western and Eastern Europe, Scandinavia, the region of the Commonwealth of Independent States and other countries participate in the fair. Number of investors For more information: The largest companies in Riga by turnover in 2016 (million EUR) 32 Uralkali Trading, Ltd Chemical reagents RIMI LATVIA, Ltd Food trade 831 URALCHEM Trading, Ltd Agricultural chemistry, fertilisers 778 Latvenergo, JSC Production of electricity 514 ELKO GRUPA, JSC Wholesale of computers, hardware 382 Circle K Latvia, Ltd Trade of fuel, petroleum products 368 ORLEN Latvija, Ltd Wholesale of fuel, petroleum products 356 Latvijas Gāze, JSC The supply of natural gas 344 Sadales tīkls, JSC Electricity supply 316 Samsung Electronics Baltics, Ltd Wholesale of electrical household devices Statistics of Lursoft. Accumulated foreign direct investments in Riga, billion EUR The Foreign Investors Council in Latvia is a non-governmental organisation that brings together the largest companies from various countries and sectors that have made significant investments in Latvia, as well as thirteen countries Chambers of Commerce in Latvia. Paul Mason Properties Ltd via the franchise agreement with Inter IKEA Systems BV develops new IKEA store construction in Riga. IKEA store will be located approximately 8 km from the city centre, and will be the standard IKEA store with parking lots for more than vehicles. At the beginning of 2017 the project developer entered into a cooperation agreement with the Riga municipality that determines that the initial investment in the object and in the surrounding infrastructure will exceed 40 million euro, but investors envisage additional investments of more than 80 million euro for the development of the territory. The store is scheduled to be opened in autumn Global business process outsourcer and customer service company Webhelp (France) in 2017 opened a new customer service centre in Riga. In the next few years time the amount of investments for work of the company will be about one million euro. Its customers are known companies as Electrolux, Nesspresso, Vodafone, Michael Kors and Valentino. The opening of the Riga centre will allow Webhelp to extend business geographically and offer additional opportunities for Russian speaking markets, while still being in the European Union. A retail stores network Rimi will invest 75 million euro in the construction of the logistics centre in Riga, on A.Deglava Street. It will be the largest building that was built during the independence time of Latvia. The warehouse area will reach almost m2 and it is planned to create 600 new job places therein. In the next four years, it will become the major logistics centre of the Baltic States. Riga was chosen due to its geographical location, as well as due to available various support programmes. The project is planned to be finished until For more information:

18 PORT OF RIGA Cargo handled at the Port of Riga The Port of Riga is the largest port in Latvia and the second largest in the Baltic States based on cargo turnover. The port is located along both banks of the river Daugava and it is 15 km long, and is open for sailing throughout the whole year. Up to 80 % of cargo turnover in the Freeport of Riga consists of transit cargos sent to or received from the Commonwealth of Independent States (CIS). Serving passengers at the Port of Riga is carried out by the shipping company TALLINK Group JSC ensuring passengers, passengers vehicles and cargo traffic between Latvia and Sweden with the departure from Riga and Stockholm ports every day. Cargo loaded and unloaded at the Port of Riga (thousand tons) Number of ships served Turnover of ships (thousand tons) Freeport of Riga. Loaded cargo Structure of cargo handled at the Port of Riga in 2016 (share, %) Timber Containerized cargo Unloaded cargo Passengers served at the Port of Riga Oil products 17 Others Number of ships entering the port Freeport of Riga Chemical freight Coal Number of passengers of cruise ships Number of passengers of ferries 33 Freeport of Riga In 2017 the yacht ports infrastructure development project EST LAT Harbours was launched. The aim of the project is to create a single network of yacht ports in Latvia and Estonia, which would allow in the future to develop sailing tourism and to attract foreign yachtsmen from Scandinavia and other countries. Within the scope of the project it is planned to implement project activities in two directions investments in yacht ports infrastructure and development of services, as well as promotion of Latvia and Estonia as sailing destinations. For more information:

19 RIGA INTERNATIONAL AIRPORT The Riga International Airport serves almost half of all passengers of the Baltic States, and the broadest range of direct destinations are available from Riga International Airport comparing with the other airports of the Baltic States. The airport provides both aviation (passengers, aircraft and freight services) and not-aviation (rent of premises and territory, parking lots, the VIP Centre, etc.) services. It serves both full service and low cost airlines. Cargo, flights and passengers at the Riga International Airport 36 3h 3 long drive from the airport million inhabitants Cargo (tones) Flights Passengers (million) TOP10 destinations in 2016 by number of passengers 38 London Moscow Oslo Frankfurt Helsinki Berlin Stockholm Tallinn Vilnius Copenhagen 38 Riga International Airport. In 2016 the Airport Ground Handling Department (RIX GH) reached punctuality record of percent that is one of the highest figures in Europe % punctuality record in Riga International Airport. TOP 10 airlines in 2016 by the number of transported passengers 37 Air Baltic Corporation Lufthansa Riga International Airport. Ryanair Aeroflot Turkish Airlines Wizz Air SmartLynx Airlines LOT Polish Airlines Norwegian Air Shuttle Finnair The building of the new north pier at the airport is the most significant infrastructure project in the last years. 19 new boarding sectors, three aircraft bridges, two new stores and five cafes, playgrounds for children, as well as spacious and comfortable lounges are available for passengers in two floors of the new pier. After the opening of the northern pier transit passenger zone will allow to serve 7 10 million passengers a year. The next step of the infrastructure development of the Riga International Airport will be further improvement of the pier by extending the check-in area, baggage reception and sorting area, security control zones, as well as by building multi-storey parking lot and the connection to the Riga Airport Station of the newly building European width railway track project Rail Baltica. For more information: airport.com/en 34 35

20 ICT The proportion of Internet banking users th in the Europe According to the assessments carried out by the company Akamai, in 2017 Latvia had fastest Internet 1 st among Baltic States 42 EUROSTAT Networked Readiness Index, the World Economic Forum 40 The average Internet speed (Mbps) The usage of mobile data (Gb) The World Economic Forum. The Global Information Technology Report Akamai`s [State of the Internet]. 2.2 According to OECD data, Latvia is in the 2nd place among EU member states (behind Finland) Characteristics of ICT development, the World Economic Forum 41 Mobile network coverage 98.8 % Mobile subscribers Mobile Internet subscribers 41 The World Economic Forum. The Global Information Technology Report /100 inhab. 61.2/100 inhab. The proportion of Internet users 76 % Households with a personal computer 74 % Households with Internet connection 73 % companies are working in the ICT. Mostly in the field of computer programming. The auditor and consultancy firm Deloitte named Latvian technology company EazyOne as one of the 50 fastest growing companies in the Central Europe. EazyOne is ranked in high 18th place in this top. Over the last decade EazyOne is the only technology company in Latvia that has managed to appear in this list. The EazyOne business data visualization and analytical tool eazybi is actively used by thousands of customers worldwide, including companies such as Sony, Samsung, HP, BMW, Volvo. For more information:

21 TOURISM Within the World Economic Forum aggregated the Travel & Tourism Competitiveness Index Latvia holds 54th place in 136 world country competition. 54 th The Travel & Tourism Competitiveness Index MEET Riga is the official congress office of the City of Riga and the Riga Tourism Development Bureau, whose task is to promote and strengthen Riga s and Latvia s status as the perfect venue for conferences, congresses and corporative events in the Northern Europe, helping event organizers to find the most suitable local service providers in the region. For more information: The Riga Tourism Development Bureau maintained website, whose aim is to promote Riga s tourism abroad using the city tourism brand LIVE RIGA. There is available tourism information in four languages (in Latvian, Russian, English, and German). Hotels and other accommodation establishments in Riga 31 other accommodations for tourists 24 hotels For more information: Number of foreign visitors in accommodation establishments by countries The Russian Federation Germany Lithuania Estonia Finland The United Kingdom Norway Sweden Poland Italy Number of foreign visitors in accommodation establishments in Riga conferences and congress annually Till the year 2021 in the modern centre of Riga Skanste s neighbourhood it is planned to develop the conference and concert centre of Riga that would unite together three buildings a music house, a conference centre and a hotel. It will be a home for the contemporary art museum; and nearby there is Arena Riga that currently is the largest multifunctional event place in Latvia and one of the most significant such kind of establishments in the Baltics. international corporative events 38 39

22 RIGA IN THE WORLD Tallinn (EST) Tartu (EST) Aalborg (DK) Vilnius (LT) Rostock (DE) Bremen (DE) Warsaw (PL) Pori (FI) Stockholm (SE) Norrkoping (SE) Minsk (BY) Amsterdam (NL) Kiev (UA) Bordeaux (FR) Florence (IT) St. Petersburg (RU) Moscow (RU) Tbilisi (GE) Yerevan (AM) Astana (KZ) Almaty (KZ) Tashkent (UZ) Beijing (CN) Dallas (USA) Kobe (JP) Suzhou (CN) Taipei (TW) 29 Sister Cities of Riga Santiago (CL) Representation of Riga s interests Cairns (AU) Membership in 19 international organisations and networks The Baltic Metropoles Network BaltMet The Union of the Baltic Cities (UBC) European Film Commission Network (EUFCN) The Network of Major European Cities (EUROCITIES) The Network of European Metropolitan Regions and Areas (METREX) The European association of local authorities for the promotion of local sustainable energy policies (Energy-Cities) The European Social Network (ESN) The network of regional film funds in Europe (CINE REGIO) The European folk culture and art festival Europeade The European Association for Hydrogen and fuel cells and Electro-mobility in European Regions (HyER) The Modern Alliance of Hanseatic cities Städtebund DIE HANSE The Organization of World Heritage Cities OWHC WHO European Healthy Cities Network The European Forum for Urban Security EFUS International association Baltic Sail International non-governmental organization Network of Gastronomic Cities (Délice) The International Committee for the Conservation of the Industrial Heritage TICCIH International Committee of Tourism Film Festivals (CIFFT) The Association of historical cities the League of Historical Cities in Brussels Address: Square De Meeus 1, (4th floor) B 1000, Brussels, Belgium Phone E mail: inga.barisa@riga.lv, eu@riga.lv Live Riga created advertising video series Insider s Guide to Riga that won two gold awards Gold Dolphin in the international festival Cannes Corporate Media & TV Awards. The awards were received in the categories The Best Tourism Film and The Best Short Video and Social Media Video. Five short videos Go on a Journey with a Taxi Driver, Teacher s directions, The Priest s Path, The Women s Blogger Pitstops, Rebellious Trip with the Senior were submitted for the festival. in Moscow Address: Krasnopresnenskaya embankment 12, 6th entrance, 1008th room, Moscow, , the Russian Federation Phone E mail: moscow@riga.lv Take a look:

23 RĪGAS DOMES PILSĒTAS ATTĪSTĪBAS DEPARTAMENTS Riga City Council City Development Department Amatu Street 4, Riga, LV 1050, Latvia (+371) RDPilsetasattistibasdepartaments 42