Tourism Sector in Estonian Economy- not Plainly Visible but still Outstanding Signe Ratso Deputy Secretary General P

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Tourism Sector in Estonian Economy- not Plainly
Visible but still OutstandingSigne RatsoDeputy
Secretary GeneralPärnu, September 5
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General Information

• Population
• Area
• Language
• Currency
• GDP per capita
• GDP per capita PPP
• GDP growth
• Export

• 1.4 million
• 45 000 km²
• Estonian
• EUR 1 EEK 15.65
• EUR 6 703 (2004)
• 50.7 of EU average (2004)
• 7.8 (2004)
• 78.4 of GDP (2004)

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Population in Baltic Sea Region
Denmark 5.3 Sweden 8.9 Finland
5.2 Norway 4.4 Germany 12.3 Poland
38.7 ESTONIA 1.4 Latvia
2.4 Lithuania 3.7 Russia 10.6 TOTAL
93 million
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Macroeconomic Framework

• Liberal trade and price policy
• No restrictions to the free movement of capital
• Fixed exchange rate system
• Balanced budget of central government
• Conservative foreign borrowing policy
• Simple and proportional tax system
• After 1 May 2004, Estonia implemented the
  Common Trade Policy of the EU

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2005 Index of Economic Freedom Rankings

• 1. Hong Kong
• 2. Singapore
• 3. Luxembourg
• 4. Estonia
• 5-6. Ireland, New Zealand
• 12. Switzerland, USA

• 14. Sweden
• 15. Finland
• 23. Lithuania
• 28. Latvia
• 124. Russia

Source Wall Street Journal, The Heritage
Foundation
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Real GDP growth
Source Statistical Office of Estonia, Eurostat
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Inflation rate
Source Eurostat
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Labour market
Source Statistical Office of Estonia
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FDI into Estonia
Source Bank of Estonia
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GDP by Sectors, 2004
Source Statistical Office of Estonia
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Estonian Tourism Economy

• Share in GDP around 8 (1997-2000)
• Provides jobs for around 45 thousand people
  (full-time equivalent, ca 8 in total employment)
• Export of tourism services 0,9 billion euros
  (2004, 13 of total exports and 39 of exports
  of services)

Source Statistical Office of Estonia, Bank of
Estonia
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Tourism sector after the accession

• Number of foreign tourists increased in 2004 by
  20
• Reasons
• Higher media attention due to the EU accession
• Marketing Estonia as a tourism destination
• Easier border crossing
• Increase of supply of tourism services
• Better and cheaper transport connection

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Accommodation establishments
From 2002 data include the data of health resorts
providing accommodation service
Source Statistical Office of Estonia
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Accommodated foreign tourists
Source Statistical Office of Estonia
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Tourists in accommodation establishments, 2004
Source Statistical Office of Estonia
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Nights spent in accommodation establishments
From 2002 data include the data of health resorts
providing accommodation service
Source Statistical Office of Estonia
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Future outlook

• Growth in the tourism sector is expected to
  continue both domestic and foreign demand will
  increase
• Hotels and restaurants are sectors with the
  highest need for additional workforce in
  following years

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