Competition distortion at the Baltic level must not be tolerated - demand for a vaccination certificate in supermarkets to be abolished
As the epidemiological situation changes rapidly, European countries are lifting their restrictions one by one, including the requirement to show vaccination certificates when visiting public places. This is based on data on the impact of the new variant of the virus - hospitals are no longer overwhelmed with seriously ill patients and the virus is transmitted in a much milder form. However, while such changes are also being introduced in our closest neighbouring countries, Latvian businesses are still forced to live with epidemiologically unjustified restrictions that cause increasing financial difficulties. The supermarkets call on the government to remedy this situation immediately by removing the requirement for visitors to show vaccination certificates in order to stop distorting competition at the Baltic level and finally allow businesses to resume full operations.
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From this Saturday, 5 February, vaccination certificates will no longer be required in shopping centres and other indoor public places for Lithuanian residents and visitors. Estonia plans to take a similar step and abolish vaccination certificates completely from 21 February, but most shopping outlets in the neighbouring country already do not require a certificate. Such inequality here in the Baltics makes it even harder for Latvian entrepreneurs to survive - while here some of the best-paying shoppers are not allowed into shopping centres, in neighbouring countries their options are wider, so people choose to make their purchases in Lithuania and Estonia. This has been observed both by the retail industry, whose companies operate in several Baltic countries, and by Citadele bank, whose customer data shows that the incomes of Latvian residents are rising, and spending outside Latvia has increased, both when people shop more online and when they are physically outside Latvia[1]. The fact that inequality constraints lead to serious disparities in the growth of the retail sector is also indicated and was published at the end of 2021 by Mārtiņš Āboliņš, economist at Citadele banka: “In the first eleven months of this year, retail turnover in Latvia as a whole has grown by only 1.8% in constant prices. This is significantly slower than in Lithuania and Estonia, where retail turnover growth is likely to exceed 10% this year[2].” Such trends signal significant inequalities here in the Baltics, which could lead to a sharp economic downturn in Latvia.
A new trend in the development of the Covid-19 pandemic over the past week has been the widespread decision by national governments across Europe to lift various restrictions previously put in place to control the epidemiological situation. They are based on observations of the impact of the new variant of the virus on those who become ill. Although morbidity figures are rising, the number of severe cases and hospital admissions is at a relatively low level, so Covid-19 is no longer overburdening health systems. “This is an opportunity for society and businesses to finally gradually return to our pre-pandemic routine and start the road to economic recovery. While the Danish and Swedish governments, for example, have already decided to abolish the requirement to show a vaccination certificate in indoor public places such as shopping centres, the impact on Latvian businesses is strongest due to differences in decisions at the Baltic level. Shopping centres are calling on the Government to immediately reverse the current restrictions in the country and follow the example of neighbouring countries by abolishing the requirement for vaccination certificates at the point of sale to support the industry on the road to recovery from the pandemic crisis!”, says Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers (NĪAA).
About NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner at the state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags – Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
From this Saturday, 5 February, vaccination certificates will no longer be required in shopping centres and other indoor public places for Lithuanian residents and visitors. Estonia plans to take a similar step and abolish vaccination certificates completely from 21 February, but most shopping outlets in the neighbouring country already do not require a certificate. Such inequality here in the Baltics makes it even harder for Latvian entrepreneurs to survive - while here some of the best-paying shoppers are not allowed into shopping centres, in neighbouring countries their options are wider, so people choose to make their purchases in Lithuania and Estonia. This has been observed both by the retail industry, whose companies operate in several Baltic countries, and by Citadele bank, whose customer data shows that the incomes of Latvian residents are rising, and spending outside Latvia has increased, both when people shop more online and when they are physically outside Latvia[1]. The fact that inequality constraints lead to serious disparities in the growth of the retail sector is also indicated and was published at the end of 2021 by Mārtiņš Āboliņš, economist at Citadele banka: “In the first eleven months of this year, retail turnover in Latvia as a whole has grown by only 1.8% in constant prices. This is significantly slower than in Lithuania and Estonia, where retail turnover growth is likely to exceed 10% this year[2].” Such trends signal significant inequalities here in the Baltics, which could lead to a sharp economic downturn in Latvia.
A new trend in the development of the Covid-19 pandemic over the past week has been the widespread decision by national governments across Europe to lift various restrictions previously put in place to control the epidemiological situation. They are based on observations of the impact of the new variant of the virus on those who become ill. Although morbidity figures are rising, the number of severe cases and hospital admissions is at a relatively low level, so Covid-19 is no longer overburdening health systems. “This is an opportunity for society and businesses to finally gradually return to our pre-pandemic routine and start the road to economic recovery. While the Danish and Swedish governments, for example, have already decided to abolish the requirement to show a vaccination certificate in indoor public places such as shopping centres, the impact on Latvian businesses is strongest due to differences in decisions at the Baltic level. Shopping centres are calling on the Government to immediately reverse the current restrictions in the country and follow the example of neighbouring countries by abolishing the requirement for vaccination certificates at the point of sale to support the industry on the road to recovery from the pandemic crisis!”, says Mārtiņš Vanags, Chairman of the Board of the Alliance of Real Estate Developers (NĪAA).
About NĪAA
The Alliance of Real Estate Developers (NĪAA) brings together the most significant players in the industry in order to achieve the sustainable development of the real estate industry, represent it in a collective manner at the state and local government level, as well as emphasise the role of real estate developers and investors within the economy of Latvia.
For further information:
Mārtiņš Vanags – Alliance of Real Estate Developers (NĪAA)
martins.vanags@niaa.lv
[1]https://business.gov.lv/zinas/mazumtirdznieciba-latvija-sogad-ir-augusi-lenak-neka-lietuva-un-igaunija (accessed 03.02.2022.)
[2] Ibid.