Tourism in Estonia in 2008 (as of June 2009)
1
TOURISM IN ESTONIA IN 2008 Inbound tourism In terms of inbound tourism, 2008 showed better results than 2007. Several markets that decreased in 2007 showed a recovery in 2008. While tourism in Europe stagnated in 2008 (according to the UNWTO Barometer issued in January 2009, tourism to European countries increased by just 0.1%), Estonia achieved a 3.7% increase in tourist arrivals. 1.97 million foreign tourists stayed overnight in Estonia in 2008 (+3.7% compared to 2007). Among them, 1.43 million stayed at accommodation establishments, and about 0.54 million stayed with friends or relatives or at their own apartments. Several factors facilitated the development of inbound tourism in 2008: • The new fast ferries that started sailing year-round between Tallinn and Helsinki in 2007 and in spring 2008 contributed to increased traffic from Finland, especially during the first half of 2008. Also, thanks to the warm winter, the catamarans sailed between Tallinn and Helsinki about 1.5 months longer than usual (in the first quarter of 2008). • Joining the Schengen Area on 21 December 2007 facilitated travel from Russia. Abolishing the border control between the Baltic and other Eastern European countries also facilitated multi-country touring (combining Estonia with the Baltic or Nordic countries) for other nationals. • The substantial increase in the number of new hotel beds in Tallinn during 2007 resulted in increased marketing efforts (incl. favourable offers) by the hotel sector which seemingly contributed to the increase in tourism from nearby countries (especially during the first half of 2008). 1.43 million foreign tourists stayed overnight at Estonian accommodation establishments in 2008. Compared to 2007, their number increased by 3.8% (+53,000 tourists). The number of nights spent by foreign tourists amounted to 2.93 million, increasing by just 0.6%. The main reason for such a small increase in overnights was the continuing decrease of Finnish overnights in health spas (where the average length of stay is somewhat longer than at the other accommodation establishments). Holidays accounted for 62% of foreign overnights, conference trips for 3%, other business trips for 15% and other trips (incl. health treatment holidays) for 19% of foreign overnights. Holiday tourism increased by 6% and conference tourism by 18% (after a decrease in 2007). Overnights on other business trips decreased slightly (-2%) whereas overnights on other trips continued to decrease substantially (-14%). After three consecutive years of decline, arrivals from the main inbound market Finland increased by 3% in 2008. Overnights, however, decreased slightly (-0.7%) due to the continuing decrease of Finnish overnights in health spas. Thanks to the warm winter, the catamarans started to sail between Tallinn and Helsinki about 1.5 months earlier than usual. This and also the new type of fast ferries that started sailing year-round between Tallinn and Helsinki in 2007 and in spring 2008 contributed to increased traffic from Finland, especially during the first half of 2008. In absolute figures, the biggest increase occurred in their most popular destination Tallinn (after two years of decline), whereas the biggest decrease occurred in the Finns’ second most popular destination Pärnu (4th consecutive year of decline). In other words, their short holiday trips (with one or two overnights) to Tallinn increased whereas their spa and health treatment trips continued to decrease.
Tourism in Estonia in 2008 (as of June 2009)
2
Joining the Schengen Area on 21 December 2007 facilitated travel from various countries. In particular, tourism from Russia, which decreased in 2007 due to political problems, increased substantially throughout 2008. Due to the general strong growth trend in Russian outbound tourism, the number of Russian tourists increased significantly not only from the 2007 level but also compared to the 2006 figures. However, the trips were somewhat shorter than in previous years, possibly because the Schengen Area enabled more Russian tourists to visit Estonia on a multi-destination trip with shorter stays in each destination country. In absolute figures, the biggest increase occurred in their most popular destination Tallinn but the substantially smaller East Viru County (their second most popular destination) also experienced a significant increase. Following the strong growth trend of 2007, tourism from Latvia increased substantially also in the first half of 2008. This growth trend can be attributed to the additional marketing activities by the public and private sector and the general growth trend in Latvian outbound tourism. However, starting from July, tourism from Latvia showed a decline. Apparently, the main reason was the worsening economic situation in Latvia. Possibly, the rainy weather in summer had also some negative impact on the results of July and August. The number of Latvian tourists in Tallinn (their most popular destination) increased by just 0.7% but as their trips were shorter than in 2007, their overnights in Tallinn decreased by 10%. Their second most popular destination – Saaremaa Island – attracted a substantial growth during the low season (especially in the first quarter) but experienced a small decline during the summer months. On the other hand, Latvian arrivals and overnights in Tartu and Pärnu (their 3rd and 4th most popular destinations in Estonia) increased considerably throughout the whole year. Tourism from Lithuania maintained the strong growth trend of the past three years throughout 2008. The biggest increase (in absolute figures) occurred in their most popular destination Tallinn but also their second most popular destination Saaremaa Island continued to enjoy strong growth. Tourism from Germany increased by 6% (after a decrease both in 2006 and 2007). Most of the increase occurred in Tallinn (their most popular destination) in the high season (from May to August). Apparently, both some additional transport connections and easier border crossings in the Schengen Area (which facilitated multi-country touring holidays in the Baltic/ Nordic countries) contributed to the increase in spring and summer. However, starting from November the number of flight connections between Estonia and Germany were reduced. This had a negative impact on German arrivals in November and December (although tourism from Germany to Estonia is rather seasonal and the absolute figures in the winter season are small). Some important markets showed a decline: notably Sweden and the UK (both decreasing for the second consecutive year) and Norway (decreasing after a substantial increase during the past three years). Decrease from Sweden, Norway and the UK can be explained by a combination of several factors: e.g. lack of new stimuli for growth (new tourist products, competitive transport connections, especially from regions outside the capital cities, etc.); better competitive position of similar destinations, such as Latvia (in terms of novelty and flight connections) and increase of prices in Estonia. In the case of UK outbound tourism, there has apparently been a general decrease in interest in secondary short breaks in 2007 and especially in 2008. Of the smaller source markets, tourism from the United States decreased (after two years of good increase). The number of U.S. tourists and overnights decreased in most European countries in 2008, apparently due to the economic downturn and the low U.S. dollar (until autumn). In addition to overnight tourists, the number of cruise passengers visiting Tallinn for one day increased substantially (+28%) in 2008 (from 293,000 in 2007 to 375,000 in 2008). The number
Tourism in Estonia in 2008 (as of June 2009)
3
of cruise ships sailing on the Baltic Sea increased and several ships were also larger than in the previous years. Of the cruise passengers visiting Tallinn, 21% were from the United States, 18% from the United Kingdom, 15% from Germany, 13% from Spain and 6% from both Sweden and Italy. With 298 cruise ship calls, Tallinn was the third most visited destination on the Baltic Sea, following St. Petersburg and Copenhagen (which attracted 311 and 301 calls, respectively).
Domestic tourism Following several years of strong growth, domestic tourism showed modest results in 2008. The most important factor contributing to the strong growth in 2006 and 2007 was the economic growth which enabled Estonian residents to make more domestic holiday trips and also contributed to the increased spend on conference and incentive trips by the public and private sector. However, the first months of 2008 showed a slowdown in domestic tourism and starting from June, domestic tourism decreased (taking into account domestic arrivals and overnights at accommodation establishments only). The main reason behind the decrease is the economic slowdown which reduced business and incentive travel already starting from the first quarter of 2008. Domestic holiday travel decreased mainly from June to September – in addition to the worsening economic conditions the rather rainy weather during the summer months and numerous attractively priced outbound holiday offers in winter and spring may also have had some negative impact on domestic trips in summer. 944,325 domestic tourists stayed overnight at Estonian accommodation establishments in 2008. Compared to 2007, their number decreased by 18,400 or by 1.9%. The number of nights spent by domestic tourists amounted to 1.67 million, decreasing by 5% - as both business and private trips were slightly shorter than in 2007. Both health spas and spa hotels as well as other accommodation establishments experienced a decline. Holidays accounted for 44% of domestic overnights, conference trips for 6%, other business trips for 26% and other private trips for 24% of domestic overnights. Overnights on holiday trips increased by 0.8% while overnights on other private trips decreased by 7% and overnights on business and conference trips decreased by 11%.
Revenue from tourism After a decrease in 2007, tourism receipts started to increase again in 2008, exceeding also the level of 2006. In 2008, Estonia’s tourism receipts amounted to EUR 1.12 bil. This was 9.1% more than in 2007. Travel receipts (foreign visitors’ expenditures in Estonia) amounted to EUR 820 mil. (+9% compared to 2007). Fare receipts amounted to EUR 304 mil. or 10% more than in 2007. The share of tourism receipts in Estonia’s total exports of goods and services was 9.3% (in 2007, it was 9.1%).
Compiled by: Piret Kallas, Research Coordinator Estonian Tourist Board Enterprise Estonia
Tourism in Estonia in 2008 (as of June 2009)
4
Arrivals and overnights at all accommodation establishments of Estonia by country of residence Arrivals at accommodation establishments 2004
Total domestic foreign Finland
2005
2006
2007
2008
change (compared to the previous year) 2005
2006
1 922 126 2 072 586 2 259 087 2 343 044 2 377 671 150 460 186 501 547 712
619 168
831 504
962 721
944 325
1 374 414 1 453 418 1 427 583 1 380 323 1 433 346
2007
2008 2005 2006 2007 2008
83 957 34 627
8%
9%
4% 1,5%
71 456 212 336 131 217 -18 396 13% 34% 16% -1,9% 79 004 -25 835 -47 260 53 023
6%
-2%
-3% 3,8%
728 181 -44 732 -50 007 -42 008 21 057
-5%
-6%
-6%
3%
4 806 28% -18%
-3%
6%
843 871
799 139
749 132
707 124
Germany
85 643
109 346
90 073
87 109
91 915
23 703 -19 273
Sweden
89 042
108 234
105 939
90 221
86 308
19 192
-2 295 -15 718 -3 913 22%
-2% -15%
-4%
Russia
42 348
53 427
67 201
56 407
82 280
11 079
13 774 -10 794 25 873 26% 26% -16%
46%
Latvia
40 956
51 558
65 559
74 667
79 527
10 602
14 001
Norway
35 798
41 273
48 863
55 999
47 240
5 475
7 590
UK
38 903
62 926
61 393
56 113
46 575
24 023
-1 533
Lithuania
20 555
24 703
29 889
35 561
41 396
4 148
5 186
5 672
Italy
25 642
26 712
26 753
24 901
26 280
1 070
41
-1 852
Poland
11 301
14 194
14 240
18 555
20 859
2 893
46
4 315
USA
19 411
19 506
19 856
22 169
19 185
95
350
France
15 086
16 921
16 510
17 813
18 522
1 835
-411
1 303
709 12%
-2%
8%
4%
Spain
12 177
15 533
15 148
17 454
17 844
3 356
-385
2 306
390 28%
-2% 15%
2%
Denmark
13 915
15 407
16 206
14 053
14 281
1 492
799
-2 153
228 11%
5% -13%
2%
Holland
10 490
12 714
13 688
12 229
12 533
2 224
974
-1 459
304 21%
8% -11%
2%
7 362
8 066
8 093
6 799
6 862
704
27
-1 294
63 10%
0% -16%
1%
Japan
Overnights at accommodation establishments 2004
2005
2006
2007
2008
-2 964
9 108
4 860 26% 27% 14%
7%
7 136 -8 759 15% 18% 15% -16% -5 280 -9 538 62%
-2%
-9% -17%
5 835 20% 21% 19% 1 379
4%
2 304 26%
2 313 -2 984
0%
0%
16%
-7%
6%
0% 30%
12%
2% 12% -13%
change (compared to the previous year) 2005
2006
2007
2008 2005 2006 2007 2008
Total
3 757 715 4 111 577 4 543 330 4 674 501 4 602 212 353 862 431 753 131 171 -72 289
domestic
1 010 909 1 129 118 1 522 963 1 759 045 1 669 550 118 209 393 845 236 082 -89 495 12% 35% 16% -5,1%
foreign
2 746 806 2 982 459 3 020 367 2 915 456 2 932 662 235 653
Finland
1 664 799 1 581 685 1 501 481 1 425 926 1 415 884 -83 114 -80 204
37 908 -104 911
9% 11%
17 206
9%
1%
-3% 0,6%
-75 555 -10 042
-5%
-5%
-5% -0,7%
Germany
163 842
215 892
185 550
177 355
187 665
52 050 -30 342
Sweden
184 871
235 202
236 998
195 748
185 592
50 331
1 796
Russia
101 546
138 508
176 862
149 663
198 319
36 962
38 354
Latvia
59 532
74 880
101 300
119 429
123 299
15 348
Norway
81 288
105 432
134 741
148 254
125 683
24 144
UK
94 843
159 141
155 667
140 230
112 423
64 298
-3 474
Lithuania
32 068
40 925
52 202
61 207
69 555
8 857
11 277
9 005
Italy
52 507
59 553
61 348
60 393
60 692
7 046
1 795
-955
Poland
22 681
26 459
31 802
38 274
48 254
3 778
5 343
6 472
USA
44 492
44 349
49 460
53 599
46 014
-143
5 111
4 139
France
28 962
33 990
35 817
37 791
38 416
5 028
1 827
1 974
625 17%
Spain
21 878
28 634
29 362
35 442
38 510
6 756
728
6 080
Denmark
28 510
32 445
34 358
30 946
31 684
3 935
1 913
-3 412
Holland
21 698
26 095
29 145
26 873
27 662
4 397
3 050
-2 272
789 20% 12%
15 516
12 246
12 143
1 176
166
-3 270
Japan 14 174 15 350 Source: Statistics Estonia
3% -1,5%
-8 195
10 310 32% -14%
-4%
6%
1% -17%
-5%
-27 199
48 656 36% 28% -15%
33%
26 420
18 129
3 870 26% 35% 18%
3%
29 309
13 513 -22 571 30% 28% 10% -15%
-41 250 -10 156 27%
-15 437 -27 807 68%
-2% -10% -20%
8 348 28% 28% 17% 299 13%
3%
-2% 0,5%
9 980 17% 20% 20% -7 585
0% 12%
26%
8% -14% 6%
2%
3 068 31%
3% 21%
9%
738 14%
6% -10%
2%
-103
8%
5%
14%
-8%
3%
1% -21% -0,8%
Tourism in Estonia in 2008 (as of June 2009)
5
Overnights of foreign and domestic tourists at accommodation establishments (thous.), 1994-2008. Source: Statistics Estonia. 4800 4600 4400 4200 4000
Domestic overnights
3800
1523 Foreign overnights
3600
1759
1670
1129
3400
- 5% 1011
3200 3000 2800
817
2600 2400
698
626
2200 2000
613
1800
606
1600
593
1400
2747
517
1200
596
1000
518
523
800 600 400
594
200
753
886
1995
1996
1079
1187
1997
1998
1911
1998
2001
2002
2982
3020
2915
2933 +0.6%
2005
2006
2007
2008
2268
1598
1329
0
1994
1999
2000
2003
2004
450 2005
2006
2007
2008 375 384 368 379
2004
439 432 427 440
433
Overnights of foreign tourists at accommodation establishments of Estonia, 2004-2008 (thous.).
318 332 312 321
174
168 172 177 168
188 197 179 178
188
242 246 229 228
299
275 280 255 241
260
242
223
203
266
288 289
154
141 139 144 153
123
108
150
125 134 138 133
200
190 178 177 179
250
232 236 243 213
300
294
350
344
400
100
50
0 Jan
Feb
March
April
May
June
July
August
Sep
Oct
Nov
Dec
Tourism in Estonia in 2008 (as of June 2009)
6
Overnights of foreign tourists at accommodation establishments by country of residence, 2003-2008 (thous.). 3100 3000 2900 2800 2700 2600 2500 2400 2300 2200 2100 2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0
431
476
41
52
159 75 105
156
61
70
101 135
140
Lithuania
119
112 123
148
126
UK
514
498 364 32
95 60 81
318
235
185
237
23
73 43 61 134
164
216
102
188
177
177
122 81
186
196
186
139
other foreign
Latvia
198
150
Norway Sweden 1665
1582
1412
1501
1426
Germany
1416
Russia Finland 2003
2004
2005
2006
2007
2008
Foreign tourists and their overnights at accommodation establishments by purpose of trip, 20042008 (thous.). Source: Statistics Estonia. 3200 3000
Other purpose
2800
Other business trip
2600
Conference trip
2400
Holiday trip
750
734
648
555
750
2200
454
2000
459
464
99
80
1638
1729
1723
2005
2006
2007
494
95
1800
455
99
1600 101
1400 159 1200 249 1000
63
168
159
257
230
59
50
151 235
124 228 60
43
800
1829
1442
600 400
903
968
989
952
1022
2004
2005
2006
2007
2008
200 0
Arrivals
2004
Overnights
2008
Tourism in Estonia in 2008 (as of June 2009)
7
Overnights of domestic tourists at accommodation establishments of Estonia, 2004-2008 (thous.). 260
2008
174
110
123 112
105
122 123
111 119 110
75
81
67
75
64
71
63
92
96
110
124 131
148
135
125
120 124
113 109 89 65
60
77
76
72
65
66
67
100
110
95
109 113 94
120
80
118 122
140
125 127
160
159
166
180
176
187
200
194
220
109
2007
82
2006
70
2005
211
2004
221
240
239
241
253
60 40 20 0 Jan
Feb
March
April
May
June
July
August
Sep
Oct
Nov
Dec
Overnights of domestic tourists at accommodation establishments by purpose of trip, 2004-2008 (thous.). Source: Statistics Estonia. 1800
change 2008/ 2007
1700 1600
Other purpose
1500
Other business trip
1400
Conference trip
1300
Holiday trip
431 402
-7%
440
-10%
395
1200 1100
487
1000 900
286 401
232
800 700 600 500
290 282
94
728
734
2007
2008
-17%
104
67 62
+0,8%
400 624
300 200
113
436
486
100 0 2004
2005
2006
Tourism in Estonia in 2008 (as of June 2009) Room occupancy rates of accommodation establishments, 2005-2008 (%). Source: Statistics Estonia.
% 68 66 64 62 60 58 56 54 52 50 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0
8
67 60
2005
2006
2007
2008
58 55
55
54
51
51 51 49
48 45
45
47
46
46 44
41 37
39
38
37
43 41
40
39
39
38
36
36
35
34 32 30
32 62
29
59
54 50
49
46
45
43 39
38
35 31
Jan
Feb
March
April
May
June
July
August
Sep
Oct
Nov
Dec
Accommodation capacity in Estonia Growth 2005 2006 2007 2008 2006/05 2007/06 2008/07 14,474 16,613 18,068 19,684 15% 9% 9% 31,589 37,494 40,427 44,117 19% 8% 9%
Number of rooms Number of bed places
Source: database of Statistics Estonia Travel services and passenger transport in Estonia's Balance of Payments (EUR mil.). Source: Bank of Estonia. 1200
Passenger transport: exports (foreign residents' payments to Estonian transport companies)
1100
Travel services: exports (foreign visitors' expenditures in Estonia)
1000
Passenger transport: imports (Estonian residents' payments to foreign transport companies)
900
181
700 600 116
500
0
162
173
190
187
63
717
69
200
-100
144
111
400
100
277
208
800
300
304
268
Travel services: imports (Estonian residents' expenditures abroad)
373
422
-78 -31
-108 -38
484
518
553
569
585
592
-202
-221
-214
-243
-281
-53
-69
783
811
754
820
260 -66 -22
-200
-138 -37
-38
-300
-78
-75
-400
-321
-70
-352 -465
-487
-95
-98
-550
-73
-500
-88
-600 -700 1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008