Holiday in Estonia Could Cost More Than a Vacation Abroad
A family week in Estonia can cost as much as a trip to a southern resort, due to the short tourist season and high taxes.
This summer, a family of four can spend seven nights in a five-star hotel in Bulgaria for €2,600, including flights and transfer. Approximately the same amount would pay for six nights in a four-star hotel in Pärnu, Estonia, reports ERR.
Külli Kraner, executive director of the Estonian Hotel and Restaurant Association, explains that Estonia struggles to compete with southern resorts where the tourist season lasts up to nine months a year, while Estonian hotels must earn most of their annual revenue during the summer months. Charter flights also ensure a large flow of tourists, reducing service costs.
Prices have also been affected by tax increases: last year, the VAT for hotels rose from 9% to 13%, and the VAT on catering services in Estonia is among the highest in Europe at 24%, compared to 13% in Greece and even lower in some other countries.
Olev Rijsberg, head of marketing and public relations at tour operator Novatours, notes that tour operators can offer competitive prices thanks to long-term partnerships with foreign partners. In his view, Estonians choose holidays abroad not only because of lower prices, but also because they want warm seas, comfort, and good weather.
