The information was translated using the DeepL service.
On January 23, 2024 the Cabinet of Ministers reviewed the informative report prepared by the Ministry of Economics in collaboration with the Ministry of Education and Science, the Ministry of Culture, and the Ministry of Finance, regarding the financing of large and significant events.
The organisation of very large and international events in Latvia has a positive impact on Latvia's export turnover and tax revenues paid to the state budget, as well as a fiscally invaluable impact on the country's international visibility and national image.
A major event is understood as an event of international scale which takes place in Latvia and is organised, delegated or partnered by a global or European organisation (e.g. International Olympic Committee, International Ice Hockey Federation, AEG Live (USA), etc.), the event is widely covered by the media and has a significant impact on the Latvian economy (international visibility and competitiveness, etc.), and attracts at least 10 000 foreign visitors and overnight participants staying in Latvian tourist accommodations. The duration of the event must be at least two days or more.
"Promoting the organisation of major events in Latvia in various fields, such as culture and art, sports and entertainment, business and conferences, research and science, major public events or cultural events and festivals, will not only generate additional revenue for the national economy, but will also promote Latvia's international visibility. The organisation of major international events attracts local and foreign visitors, contributes to the development of local infrastructure, economic growth and creates jobs in directly related sectors - hotels, restaurants, retail, transport - as well as in related goods and services sectors. The organisation of such events demonstrates Latvia's competitiveness as a safe and attractive destination for both industry professionals and visitors to our country," said Viktors Valainis, Minister of the Economics.
At the same time, major events can stimulate the development and growth of a country's educational and cultural sectors, with new educational programmes, internationally significant cultural events and art exhibitions.
Support for major events is foreseen as a support programme with public co-financing of up to 90% of the estimated value added tax (VAT) revenue generated by foreign visitors. It is foreseen that event activities such as advance payment to an international organisation for the organisation of an event (e.g. licence fee, calendar registration fee, TV broadcasting, participation fee required for granting international status or rating to a planned event, etc.) will be supported. etc.); rental costs of venues and land; costs of technical equipment and inventory (including security); transport costs (rental, fuel) in Latvia for the joint transportation of participants of the international event between venues; security, anti-doping, medical services.
A multi-step process is proposed for the granting of support, during which the Cabinet of Ministers decides on the conceptual support of the event, and also decides on the granting of state support - co-financing, based on an audit report submitted by the organiser on the projected VAT revenue of the turnover generated by foreign guests. Within six months of the event taking place, the EM will have to inform the Government of the results of the post-event audit report submitted by the organiser, the revenues and the use of the co-financing.
It is foreseen that the Ministry of Economy, in cooperation with the ministries and sectors responsible for the area, will develop a permanent framework for the granting of support for major events.
During the meeting, the Government decided to oblige the organiser of a major event to transfer part or all of the co-financing granted by the State to the basic State budget in the event of a profit from the event, up to a maximum of half of the profit from the major event.
At the same time, the Government decided to grant support for two major events - the organisation of the FIA World Rally Championship (WRC) in Latvia in 2024 and the organisation of the 2025 FIBA EuroBasket 2025 men's basketball European Championship final tournament in Latvia.