According to a study by Oxford Research Baltics, the losses the aviation industry suffered in 2020 compose 19.4% of the total expected GDP decline in Latvia. However, the total influence, including indirect and induced effect, reaches 43% of the total GDP decline, as reported by Latvian Aviation Association.
Estimates form Oxford Research Baltics showed that the total losses caused by the Covid-19 imposed in 2020 reached EUR 257 million. Under current restrictions researchers believe the influence will be in a long-term perspective. Because of lost investments, improved productivity and other factors, this influence may reach 1% of Latvia’s GDP.
Oxford Research Baltics board chairman Aivars Timofejevs notes: “The aviation industry in Latvia and Europe has a significant influence on the economy both in short-term and long-term. Travel restrictions leave very serious consequences for the national economy, overcoming which will require a considerable amount of time. This causes the need to regularly evaluate usefulness and proportionality of the existing restrictions.”
Latvian Aviation Association’s board member Arturs Kokars said: “Our observations show that responsible passengers who need to travel choose to fly. Right now aviation is the safest form of transport for international and domestic travel. With flight restrictions passengers are subjected to a higher infection risk, because they are forced to travel on land or use transit flights, spending more time in foreign countries.” (BNN/Business World Magazine)