Lithuanian Coastal Cities Face Wave of Bankruptcies

The recently concluded season proved to be a severe test for Lithuania’s resort towns. According to official reports, the largest seaside cities are now experiencing an epidemic of bankruptcies: vessels have been regularly seizing the assets of insolvent debtors.

Palanga, in particular, has suffered greatly. Several companies involved in the hospitality sector have gone bankrupt, and the hotel industry has incurred significant losses.

The primary cause is the rainy summer, but this is unlikely to be the sole factor. Lithuania has become one of the most expensive countries in the Eurozone, and a vacation in Palanga now costs substantially more than a trip to a warm sea destination in Asia or Africa. Under such circumstances, a crisis in the resort business seems inevitable, even in the sunniest weather.