This chapter examines tourism product development in Latvia and the factors influencing tourism development in the country. These factors include: global tourism tendencies favourable to tourism development in Latvia; political and geographical position; natural and cultural heritage tourism resources; Latvia as a new tourism destination in the EU; institutional capacity strengthening in tourism management and administration; general improvement in the economic situation; changes in air transport market in Latvia; increase in the number of Latvians travelling abroad; development of domestic tourism; persisting negative balance of Latvian tourism payments; increase in tourism accommodation occupancy rate; and growth of tourism marketing activities. It is concluded that tourism development in Latvia is taking place slowly but surely, exhibiting both positive and not so positive tendencies. Measures necessary to take advantage of Latvia's tourism opportunities, are suggested.

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