Tallinn's Old Town Loses Residents and Businesses: Up to 20% of Commercial Spaces Vacant
Despite strong tourism, Tallinn's Old Town is seeing a decline in residents and businesses, with 15–20% of commercial spaces empty – the highest rate ever recorded. Key causes include poor transport access and strict heritage protection rules.
Tallinn's Old Town, one of the Baltic region's top tourist attractions, is facing a serious decline in both population and commercial activity. According to Tallinn Deputy Mayor Kristjan Järvan (Isamaa), only about 2,000 people now live in the area, while 15% to 20% of commercial spaces in the city center are vacant – the highest figure ever recorded.
Järvan attributes the situation primarily to difficult transport accessibility and stringent requirements for preserving historic buildings. He believes that to revitalize the Old Town, transport access needs to be eased and some existing restrictions revised. "We must decide whether we want to see the Old Town only as a museum or as a place where people live," Järvan said.
He argues that overly strict restoration rules make renovations too expensive and complicated, causing owners to delay work while buildings deteriorate. Additionally, Järvan proposes simplifying transport access so residents can get home and take children to school more easily, and businesses can deliver goods.
The exodus of businesses is not solely due to the Old Town's specific conditions. City officials note that the construction of new office buildings, the rise of remote work, and unfavorable tax policies for entrepreneurs also play a role.
Even tourism-oriented businesses are struggling. Emmanuel Ville, executive director of the restaurant Olde Hansa, acknowledges that costs are constantly rising. "Running a restaurant today is not easy. Costs are rising, rent is increasing, and it becomes harder every year," Ville said.
However, he does not support relaxing heritage protection requirements. In his view, lengthy approvals and strict rules are necessary to preserve the Old Town's unique character.
The city government emphasizes that it does not intend to intervene in the market through administrative measures or price controls. Instead, authorities aim to find a balance between preserving historical heritage and creating conditions that allow the Old Town to remain not only a tourist attraction but also a viable district for living and working.
