Estonian hotel and restaurant owners pessimistic despite upbeat tourism forecasts
Tourism statistics in Estonia point to a strong summer, but hotel and restaurant owners remain cautious, citing a lack of major events and rising costs.
Estonia is in the middle of its tourist season, with Tallinn's Old Town full of visitors and cruise ships docking in the port. However, hospitality industry representatives are not sharing the optimism reflected in official numbers. They say fewer large events and growing expenses could limit any real growth.
According to Orvika Reiland, head of tourism at EIS, hotels recorded 2.32 million guests in the first five months of the year, including 1.3 million foreigners. That is 8 percent more than in the same period last year. May also showed strong growth, and she expects good summer figures. The largest groups of visitors still come from Finland and Latvia, followed by Germany, while the number of tourists from Poland is rising. Americans and those attending conferences, major events and concerts tend to spend the most.
Yet this summer Estonia has far fewer such events than a year ago, and that is hurting revenues for hotels and restaurants. Tauri Sumberg, a board member of Legend Hotels, says the difference compared with last year is huge. There are either no major events in Tallinn or they are much smaller, leading to fewer guests. Although there is some growth, it is modest when compared with other countries.
Vello Leitem, owner of the Kehrwieder cafe on Town Hall Square, says cruise passengers do not save the situation because everything is already paid for on board. Those who come ashore mostly walk around, buy water or a small souvenir. He recalls that in 2019, 450 cruise ships visited Tallinn, while this year the number is just over 100. Leitem also points to higher costs, including wages and taxes. His goal now is to achieve at least the same turnover as last year, but expenses will be significantly higher.
Meanwhile, tourists are simply enjoying the Estonian summer. Jin-Young Lee from South Korea said prices in Tallinn are more affordable than in Finland, and though restaurant food in South Korea has become expensive, it is still cheaper than in Estonia and Finland. Another South Korean visitor, Dirk, noted that many parts of Europe are extremely hot, so his friends increasingly choose Estonia and the Nordic countries for summer holidays. Tourists from the United States, Mindy and Andy, said Tallinn is beautiful and they would like to stay overnight, but they have to return to their cruise ship.
