OREANDA-NEWS. November 08, 2010. The latest release of data from the DnB NORD Latvian Barometer shows that there are several indicators of the public mood which once again show that pessimism is on the rise among the country's residents.  Another part of the study has found that considerable numbers of people have no money for travel, but at least one-third of them would be happy to save money in other areas so that they could travel to exotic lands, reported the press-centre of DnB NORD. 

The questions that are posed in the barometer study do not change from month to month, and this time it has been found that a trend that was noticed in August continued in September – optimism is on the wane.  Asked to evaluate the current condition of the Latvian economy, local residents in September were more critical than before, with 41% saying that it is "very poor."  Slightly fewer respondents, in turn, said that it was "mostly poor" (42% in August, 39% in September).  The overall index related to the economic situation, thus, has reached a level of -60 points (-58 in August).

Respondents in the DnB NORD Latvian Barometer study have also become more pessimistic about economic changes.  In September, 37% of respondents said that the situation is growing worse – 7% more than said so in August.  All in all, however, evaluations about change are more positive now than was the case in mid-2010.

Asked to forecast their families' economic condition in one year's time, 22% of respondents said that they cannot make such a forecast (15% in August).  14% thought that the situation will improve (17% in August), while 22% said that it will probably be worse (19% said that it will be somewhat worse, while 3% said that it will be very much worse).

Judgments about the work of Latvia's government also deteriorated in September after a period in which they were comparatively positive – 15% of respondents said that they are "mostly satisfied" with the government's work (17% in August), while 37% reported being "completely dissatisfied" (35% in August).

"The results of the study show that people are increasingly believing that politicians who have been in power and who, at the time of the study, were likely to be elected to Parliament in the upcoming election would hike taxes and cut various social subsidies in an attempt to reduce the national budget deficit," says economist and businessman Uldis Osis.  "Such announcements have been heard on more than one occasion, and people understand that the stabilisation and slight improvement to their lives in the last few months may be reversed."

Economist Janis Oslejs, for his part, was asked why optimism is declining and why there are such diverse evaluations of the economic situation today and in future:  "The mass media have reported on the future of the global economy, and that has an effect on the public mood in Latvia.  At the same time, however, information about what's happening abroad has also differed – there have been reports about rapid development and export growth in lots of markets, particularly in Asia, while other reports warn that the economy in Europe might well continue to stagnate.  These diverse and sometimes contradictory news reports will affect the mood of the people of Latvia."

Another aspect of the DnB NORD Latvian Barometer focuses on the fact that it gets colder in Latvia in the autumn and winter, and so people traditionally look for warm holiday destinations or take the opportunity to go skiing in countries with higher hills than those that are found back home.  That is why the new barometer study also focused on travel habits and plans to visit foreign or local tourism destinations.  People were also asked about how people who live in other parts of the world see Latvia.

More than 60% of respondents said that they have no plan to travel abroad over the next 12 months for purposes of tourism or leisure, and only 9% said that they will.  4% said that they have already arranged for such travel, while 5% said that they have firm plans, but the organisational aspects of the travel have not yet been arranged.  23% of respondents said that they would like to travel over the next 12 months, but they have no specific plans or ideas about their destination.

Those who said that they are not planning to travel in the foreseeable future were asked why, and 64% of respondents cited a lack of money, while 19% said that they have no time to travel.  Back in May 2008, when a similar study was conducted, 30% of respondents said that financial problems were a reason for not going abroad, while a larger share of respondents (39%) said that they had already travelled in the past year.  In September of this year, that answer was given by 36% of respondents.

Despite financial problems which have kept people from travelling, 30% of respondents in the barometer survey said that they would like to travel and that they would be prepared to save money in other areas to do so.  Far more often, however, residents said that they have no way of saving money (40%), while 14% of respondents said that they choose travel destinations which do not require a limitation of spending.

"Travel creates positive dependency, and there will always be people for whom new impressions and leisure are an inviolable component in life," says Inese Sirava, strategic planning director for the National Tourism Development Agency.  "As conditions such as income, health and family status change, the travel habits of such people may also change, but they probably will not stop travelling altogether.  The DnB NORD Latvian Barometer data show that one-third of respondents are prepared to save their money to be able to travel.  It is also true that there are always alternatives.  Instead of travelling to the mountains, people can hike along the Baltic Sea.  Instead of going to a foreign ski lodge, they can cross-country ski in Latvia's forests and hillocks."

Asked about what kind of leisure they prefer, 32% of respondents in the DnB NORD Latvian Barometer survey said that they like to visit exotic countries, 26% look for historical, cultural, architectural and environmental destinations abroad, while 24% just want to relax in another country.  Respondents also admitted that in reality, they more frequently opt for peaceful holidays in Latvia (37%), while 18% said that they visit historical, cultural, architectural and environmental objects in Latvia, not abroad.

Asked about Latvia's image abroad, local residents think that it relates to beautiful and unspoiled nature (37%), a country with pretty girls (31%), and a country with a wealth of diverse culture (28%).  Respondents say that in order to promote greater numbers of incoming tourists, more emphasis should be placed on Latvian values such as environmental objects (48%), architecture and historical monuments (47%), national traditions (46%) and an ecologically clean and green environment (45%).

Gastons Neimanis, director of the Riga Tourism Development Bureau:  "Respondents in the DnB NORD Latvian Barometer study said that the beautiful and clean environment of Latvia are the most important thing that shapes and should continue to shape the country's image abroad (37% and 48% respectively).  The thing is, however, that is a tourist from Germany wants to see unspoiled nature, then we need to tell that tourist where it is and how he can get there.  We need to offer a good, nice and accessible product.  That's why we must present information about destinations and offer trips that allow people to visit the specific location for a concrete fee and to see what is on offer there.  The people of Latvia, for their part, need to remember that all of us are ambassadors for our country and for our home town, and everyone who does business abroad – politicians, businesspeople, athletes and artists – must talk about Latvia, as well as about the most beautiful and interesting things that can be seen and experienced here.  This will help to bring international events to Riga."

DnB NORD Bank economics expert Peteris Strautins, for his part, points to another trend in the results of the research:  "If life is so tough that 42% of respondents have no money for travel at all, then we should advertise Latvia as a land of opportunity, right?  It turns out, however, that that is the least cited answer – just 6%.  What's more, it is not just Latvia which needs foreign investment.  From the perspective of costs, this is very advantageous for foreigners, as well.  30% of respondents have looked at Latvia's positive geographic location, but that is only one part of what can be seen as business opportunities.  I believe that the greatest unused opportunities for business relate to manufacturing, making use of the freely available and comparatively qualified labour force that exists in Latvia, as well as the fact that energy resources remain relatively cheap."

The DnB NORD Latvian Barometer is a recognised monthly sociological study in Latvia, and it is presented once a month on the basis of important aspects of life in the country. Each time, respondents are asked a set of questions that do not change so as to track the mood of the people of Latvia from month to month.