Tallinna Ettevõtlusameti turismiosakond

Tourism in Tallinn 2008 In 2008, 2.38 million tourists stayed in Estonian accommodation establishments, 50% of whom stayed in Tallinn.

Arrivals in Tallinn: 1,189,000 (+4%) 1 Bednights in Tallinn: 2,097,000 (0%) Total foreign tourists: 1,022,000 (+6%) Bednights of foreign tourists: 1,812,000 (+2%) Total domestic tourists: 166,000 (-5%) Bednights of domestic tourists: 285,000 (-12%)

Growth in bednights by foreign tourists Primary markets: Finland: +41,000 nights (+6%) Russia: +30,300 nights (+30%) Germany: +10,200 nights (+9%) Sweden: -2,400 nights (-2%) Latvia: -6,100 nights (-10%) Norway: -17,500 nights (-15%) Great Britain: -26,600 nights (-21%)

Shorter length of stay among tourists in Tallinn The average length of stay of tourists in Tallinn in 2008 was 1.76 nights (-4%).

Stays by foreign tourists: 1.77 nights (-4%) Domestic tourists: 1.71 nights (-8%) Among primary markets, Norwegians spent the longest time in Tallinn (2.48 nights), and Finns spent the shortest time (1.43 nights).

Increase in foreign tourists’ leisure and conference travel Of the bednights spent by foreign tourists in Tallinn, 74% were for leisure purposes, 19% business, 4% conference attendance, and 3% other purposes.

Domestic tourists spent half of their bednights for leisure purposes (51%), a third (33%) for business, 8% conference attendance, and 8% other purposes.

Room occupancy rates decreased; price of guest nights remained stable 412 accommodation establishments were registered in Tallinn by the end of 2008 (+4%), with a total of 7,172 rooms and 14,439 beds. On average, 50% of rooms were occupied, a 5% drop from last year.

A guest night in Tallinn accommodation cost 600 kroons on average, remaining unchanged from 2007.

Growth in passengers in air and sea travel 1.81 million passengers passed through Tallinn Airport in 2008 (+5%).

Passengers in Tallinn Old City Harbour totalled 7.21 million (+12%), of whom 84% were on the Tallinn-Helsinki line.

Increase in cruise passenger numbers 298 cruise ships and 375,000 cruise passengers (+28%) visited Tallinn in 2008.

21% of cruise passengers originated from the USA, 18% from Great Britain, 15% from Germany, and 13% from Spain.

Improvement in foreign visitors’ satisfaction with trip to Tallinn Evaluations of overall impressions of trips to Tallinn have improved over the last three years; visitors from Finland, Russia and Latvia give the most positive judgments.

7% growth in visits to Tallinn Tourist Information Centres Altogether 173,900 visitors (+7%) visited Tallinn’s two tourism information centres in 2008. The greatest growth was in numbers of visitors from Russia (+72%), Lithuania (+48%) and Germany (+20%).

1 In comparison with 2007 data.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 1

Tourists staying in Tallinn’s accommodation establishments In 2008, a total of 2.38 million tourists (+1.5%) stayed in Estonian accommodation establishments. 60% of them, or 1.43 million, were residents of foreign countries (+4%), who stayed a total of 2.93 million bednights. 944,000 domestic tourists (-2%) stayed in Estonian accommodation establishments for a total of 1.67 million bednights.

Half (50%) of the tourists staying in accommodation were in Tallinn. 1,022,000 (+6%) foreign tourists stayed in Tallinn’s accommodation establishments in 2008, and 166,000 Estonian residents (-5%). Compared to 2007, the number of people in accommodation grew 4% altogether (both foreign and domestic), or by 47,000 tourists.

Tourists in Tallinn in proportion to all tourists in Estonia, 2003-2008 1400000

100

1200000 1000000 800000

80 55

55

55

51

49

50

60 %

600000

40

400000

20

200000 0

0 2003

2004

Tourists in Tallinn

2005

2006

2007

2008

Market share of the tourists in Estonia (%)

Source: Statistics Estonia Bednights spent by tourists remained comparable with the previous year, with a total of 2.1 million bednights (0%) spent in Tallinn’s accommodation establishments. While bednights by foreign tourists grew by 2% (totalling 1,812,000 bednights), bednights by Estonian residents shrank by 12% (total 285,000 bednights).

Analysis of changes in bednights by month shows that tourist numbers grew in the first half of the year (except April), stopped growing in the summer months (June through August), and in the final quarter, bednights shrank in comparison to the previous year.

The decrease in bednights in April was to be expected, as Easter was in March in 2008, and in April in 2007. The decrease in bednights in the final quarter of 2008 was primarily due to significantly shorter lengths of stay caused by the economic downturn.

Bednights by foreign tourists grew most in February (+10%), March (+10%) and May (+17%), and this was primarily due to a growth in bednights by Finnish tourists. The greatest drop was in April (-12%), explained by the timing of Easter. Domestic tourists increased most in January (+25%) and decreased most in November (-28%). Changes in domestic tourist numbers are also connected to the economic situation.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 2

Bednights spent in accommodation establishments in Tallinn, 1998-2008 2500

+9% +15% 289 +32% 170

thousands

2000

1500

+9% +18% 108 +14%+15% 102 91 90 500 998 908 767 653

1000

+6% 114

+9% 126

-1% 325

0% 285

163

1526

1769 1824

1778 1812

2005

2007

1058 1153

0

1998

1999

2000

2001

2002

foreign tourists

2003

2004

2006

2008

domestic tourists

Source: Statistics Estonia Tourists from Tallinn’s primary target markets (Finland, Sweden, Germany, Britain, Norway, Russia and Latvia) make up 79% of all foreign tourists in Compared with the previous year, the proportion of Russia and other markets while Sweden, Great Britain and Norway’s market share dropped by a percentage The proportion of tourists from Finland and Germany remained the same as 2007.

Tourists from primary target markets as share of all foreign tourists, 2008

United Kingdom 4%

Finland 49%

Great 2008. grew, point.

Percentage change in tourists from: Russia +52%

Russia 6%

other 21%

Germany 6%

Germany +8% Latvia 4%

Finland +7%

Norw ay 4%

Latvia +1%

Sw eden 6%

Sweden -1% Norway -15% Great Britain -17%

Source: Statistics Estonia Finland continues to hold the greatest share of the market (49%), and both numbers of Finnish tourists as well as their bednights grew in 2008. Finnish tourists staying overnight increased by 7%, or 34,400, totalling 509,000 tourists. Bednights by residents of Finland grew a total of 6%, or 41,000 bednights, for a total of 726,400 bednights.

Analysing market behavior by month, we see that Finnish tourists in accommodation increased most in February (25%) and May (21%), but their bednights spent in Tallinn Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 3

grew most significantly in February (22%), March (18%) and October (12%).

The growth in the Finnish market in 2008 was boosted by improved ferry connections (large fast ferries between Tallinn and Helsinki, an ice-free winter), new ships being added to the line (e.g. Tallink’s Baltic Princess) and marketing campaigns promoting Tallinn. The Foreign Tourists Survey 2008 showed that among Finns, Tallinn is primarily a short holiday destination. Over the last three years, the share of visits to Tallinn for shopping purposes has decreased and the proportion of leisure trips has been on the rise. In comparison with earlier years, Finns spent more time in restaurants, cafes, and spas and health centres in 2008.

Trips to Tallinn by residents of Sweden, the second most important among priority markets, decreased similarly to the previous year. Market behavior, however, was more positive. While in 2007 visitors staying in accommodation decreased by 14%, in 2008, taking into account the whole year, the number of visitors in accommodation was nearly unchanged (-1%). Altogether, 62,300 Swedes stayed in Tallinn’s accommodation, amounting to 800 tourists less than the previous year.

Bednights in Tallinn by residents of Sweden also fell. Altogether, Swedish visitors spent 109,700 nights in Tallinn, a fall of 2%, or 2,600 bednights, compared to a year earlier.

Although 2008 began with a continuing fall, the decrease stopped in the spring, and figures began to grow. The months with the greatest decreases were January and February, when bednights by Swedes fell by 25% on average.

We know from the Foreign Visitors Survey 2008 that first-time visitors among Swedes are decreasing, while repeat visitor numbers are on the rise. The favorite activities of Swedish visitors to Tallinn are shopping, sightseeing, and visiting cafes and restaurants.

In comparison with earlier years, spa and health tourism has grown.

Russia rose to third place in market size in 2008, and the Russian share of tourists rose 2%. The number of Russians in Tallinn’s accommodation establishments fell from April 2007 to January 2008. From February, the number of Russians began to increase again and a notable rise in tourist numbers continued through the end of the year. The main factor affecting the growth was the simplification of visa procedures (after Estonia’s joining the Schengen visa area, Russians do not need an Estonian visa: any Schengen member state visa is sufficient). The growth was also boosted by a general growth in Russian residents’ trips abroad and marketing campaigns promoting Tallinn throughout the year.

Altogether, 52% more Russian tourists stayed in Tallinn’s accommodation than in 2007.

Bednights by Russians also increased by nearly a third (30%). 61,900 Russian residents stayed in Tallinn’s accommodation establishments, and they spent a total of 132,200 bednights here. With that, the number of Russian tourists grew not only in comparison with 2007, but also with 2006, the year before the decrease.

According to the Foreign Visitors Survey, the number of Russian tourists who do not stay in paid accommodation has also grown. Over half (59%) of foreign tourists coming from Russia do not use Tallinn’s accommodation establishments, but stay with friends and acquaintances. Russians come to Tallinn primarily for leisure, and in 2008 they visited more museums, exhibitions and concerts than in earlier years. Although Russians do not come to Tallinn for shopping trips, they spend more money on shopping than visitors from other countries.

In 2008, the falling trend in the German market halted, and the number of German tourists began to rise again. The number of Germans staying in accommodation increased by 8%, or 4,500 tourists. Bednights also increased by 9%. Altogether, nearly 60,000 Germans visited Tallinn, who spent a total of 130,800 bednights here. As in previous years, Germans visited Tallinn mostly in the summer period (May-September).

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 4

The greatest number of German tourists in 2008 came in August, but the greatest change in the number of tourists compared to a year earlier was in May (31%).

The increase in trips by residents of Germany was influenced by the Tallinn-Munich flight connection, which was opened in the summer season. According to the Foreign Visitors Survey, Germans were the most active visitors to Tallinn – they went sightseeing, visited cultural events, went shopping and walked around town. Most Germans evaluate their impressions of Tallinn favorably and would recommend Tallinn as a travel destination to their friends and acquaintances.

Over the last years, we have seen a dramatic increase in trips to Tallinn by residents of Latvia. In the first half of 2008, the growth continued; both tourist numbers and their bednight numbers increased. In the second half of the year, tourists and their bednights decreased. Altogether, over the course of the year, the number of tourists remained at the level of 2007 (36,200), but bednights fell by a tenth (to 56,200). The most likely cause of the change in Latvians’ travel habits is the worsening economic situation, which is reflected in shorter trips.

Unlike other foreign visitors to Tallinn, Tallinn is the only destination for most Latvians, and the purpose of the visit is mostly connected to business (work trip, training, conference, and so on). Most Latvians had a positive impression of Tallinn from their visit and would recommend it to their friends and acquaintances as a travel destination.

Country of Number Origin Accommodated Finland 508 962 Sweden 62 274 Russia 61 845 Germany 59 907 Great Britain 41 762 Norway 39 167 Latvia 36 247 Total foreign tourists 1 022 467 Total domestic tourists 166 058 Total 1 188 525 Source: Statistics Estonia

Change 2007/2008 34 422 7,3% -834 -1,3% 21 129 51,9% 4 549 8,2% -8 884 -17,5% -6 671 -14,6% 0,7% 240

Bednights 726 109 132 130 102 97 56

392 666 227 783 653 095 195

57 235

5,9%

1 811 987

-9 474 47 761

-5,4% 4,2%

284 709 2 096 696

Change 2007/2008

Length of Stay

40 954 6,0% - 2036 -1,8% 30 282 29,7% 10 213 8,5% -26 622 -20,6% -17 495 -15,3% -6 075 -9,8% 34 413

1,43 1,76 2,14 2,18 2,46 2,48 1,55

1,9%

1,77

-39 939 -12,3% -5 526 -0,3%

1,71 1,76

As with the Swedish market, the market shares of Great Britain and Norway also fell by one percent. The British market has been declining since 2006, and this fall continued in 2008 in both numbers of visitors in accommodation and their bednights.

While in 2007, nearly a tenth (-8%) fewer tourists came to Tallinn from the UK than the previous year, in 2008, the number fell by a sixth (17%). In 2008, 41,700 residents from Great Britain stayed in accommodation establishments in Tallinn, spending a total of 102,600 nights here. British tourists also visited other European cities less than in previous years (-8%), which may be an effect of less interest in short holidays, as well as the economic downturn.

The Norwegian market also saw a drop in trips abroad in 2008. Norwegians’ trips to Tallinn have grown yearly, but in the beginning of 2008 the number of tourists began to decline, and this trend continued until year-end. Both the number in accommodation and their bednights decreased by 15%. Last year 39,100 Norwegian residents stayed in Tallinn for a total of 97,100 nights.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 5

Altogether, the results for 2008 in markets of secondary importance from the point of view of Tallinn’s tourism marketing (Belgium, Spain, Italy, France, Denmark, China, Japan, USA) were also positive.

Visitors from Europe and their bednights showed general growth for the year, and the largest growth in these markets was in the summer months. Numbers of tourists from Belgium in Tallinn’s accommodation establishments grew by 13% and the bednights they spent in Tallinn grew by 21%. Altogether, 5,400 Belgians stayed in accommodation, for a total of 11,500 bednights. Numbers of tourists from Spain and their bednights grew (respectively, 15,500 tourists, +4%, and 34,400 nights, +11%). Similarly, Italian (21 800, +9%) and French (14 100, +7%) citizens’ visits increased, but their bednights spent here grew less (respectively: 21,800, +1% and 14,100, +2%). The Danish market also grew, with 3% more Danes visiting Tallinn than the previous year (11,200 tourists), and their bednight numbers grew by 5% (24,600 nights total).

More tourists (+8%) arrived from Asia than in 2007, although their visits were significantly shorter than in 2007. The number of tourists from China increased the most (+85%, total 1,600 tourists) over the year, but their bednights increased by only a tenth (11%, to 3,800 nights). As with other European cities, Tallinn also received fewer tourists from Japan. The number of tourists in accommodation decreased by 6% (total 5,800 tourists) and their bednights decreased by nearly a tenth (-8%, 10,400 nights total).

The American market continued its decline, as tourist numbers decreased by 15% (or 2,800 fewer tourists) and their bednights fell by 16% (-7,500 nights).

Among other markets, the most notable changes were in the Austrian, Luxembourgian and Swiss markets, where tourist numbers increased in 2008 by 47%, 56% and 32%, respectively. Bednights by Austrian tourists increased by 41%, residents of Luxembourg spent 52% more bednights here, and Swiss tourists, 17% more.

The Lithuanian and Polish markets have seen rapid growth in the last years, while their share among Tallinn’s foreign visitors is similar to other secondary markets (2.7% and 1.5% respectively). In 2008, the growth in these markets was more restrained compared to the previous year. Visitors in accommodation from Lithuania totalled 27,200, or a growth of 12% (or +2,800 tourists) over the previous year. Visitors in accommodation from Poland grew by 8%, or 1,100 tourists, for a total of 15,600 tourists.

The largest proportional growth in 2008 was in visitors from Turkey; visitors in accommodation increased by 224% (+1,800 tourists), and their bednights increased by 116% (+2,700 nights). 2,550 residents from Turkey stayed in accommodation in Tallinn in 2008 for a total of 5,000 bednights. The main event influencing this market growth was the Estonia-Turkey football game in September and the visit of Turkish president Abdullah Gül.

Length of Stay of Tourists in Tallinn According to the Foreign Visitors Survey, half of foreign visitors (51%) stay in Tallinn overnight, while the rest are either cruise passengers (15%) or one-day visitors (34%).

Most of the foreign visitors who stayed in Tallinn (77%) used accommodation establishment services, and the rest spent the night with friends or acquaintances, in their personal living quarters, or other places. This information is missing for visitors to Estonia overall, and so the length of trips to Tallinn are evaluated only for those visitors who stayed in Tallinn’s accommodation establishments.

Although the number of overnight visitors to Tallinn grew in the last year, the average length of stay in Tallinn showed a decreasing trend, across all months. The average length of stay for tourists in Tallinn in 2008 was 1.76 nights (-4%).

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 6

The average trip length among foreign tourists shortened by 4%, from 1.84 to 1.77 nights. The length of stay for domestic tourists decreased even more, from 1.85 to 1.71 nights, or 8%. The longest stays in Tallinn are in January, and the shortest are in November. Foreign visitors’ trips are longer in January primarily because of the long winter holiday enjoyed by Russian tourists. Compared to the previous year, the average length of stay decreased the most in November.

The length of stay of domestic tourists showed a notable decline in the final quarter (October-December) compared with 2007. Estonians’ trips to Tallinn grew in the beginning of the year (+3% in January), and the summer months were similar to the previous year. The longest trips were in June (1.91 nights) and the shortest in November (1.50 nights).

Average length of stay for tourists in Tallinn, January-December 2008 2,40 2,20 2,09

bednights

2,00

1,91 1,76

1,80 1,60

1,86 1,70

1,80

1,72

1,74

1,81

1,73

1,69 1,68

1,65

1,84

1,86

1,76

1,71 1,62

1,77

1,76

1,71

1,68

1,61 1,50

1,40 1,20

foreign tourists

be r

be r De ce m

No ve m

O ct ob er

be r

t

Se pt em

Au gu s

Ju ly

Ju ne

ay M

Ap ril

ar ch M

Fe br ua ry

Ja nu a

ry

1,00

domestic tourists

Source: Statistics Estonia By primary markets, the longest stays in Tallinn in 2008 were spent by Norwegians (2.48 nights), whose trip length shortened by one percent. Following them were British tourists, at 2.46 nights, whose average length of stay also fell (-4%). Finns continued to stay for the shortest length of time, averaging 1.43 nights (-1%) this year. Only the Germans took the same length of time as a year earlier, at 2.18 nights. Although Russian tourist numbers and their bednights increased significantly last year, their length of stay shortened the most (from 2.50 to 2.15 nights, or -15%). Likewise, the length of stay of Latvians and Swedes also decreased (-10% and -1%, respectively).

Most of the secondary markets also showed decreases in length of stay compared with a year earlier. Chinese visits shortened the most, from 3.99 to 2.38 nights, and residents of Belgium and Spain stayed for longer periods (+7%, or 2.11 and 2.22 nights, respectively).

Purpose of visit In 2008, the 1.19 million tourists who stayed in Tallinn’s accommodation establishments were divided according to their purpose of travel as follows: leisure travellers 73%, business travellers 25% and visitors with other aims (studies, health, friends) 2%.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 7

Purpose of travel by number accommodated Leisure travel Business Conference travel Other travel TOTAL

2005 2006 2007 Number Number Number (per cent) (per cent) (per cent) 793 361 (70%) 843 771 (73%) 806 749 (71%) 245 758 (22%) 235 511 (20%) 245 133 (21%) 43 822 (4%) 50 652 (4%) 48 158 (4%) 41 441 (4%) 33 673 (4%) 45 060 (4%) 1 131 212 1 161 113 1 140 764

2008 Number (per cent) 869 301 (73%) 225 261 (19%) 64 462 (5%) 29 501 (2%) 1 188 525

Source: Statistics Estonia In 2008, Tallinn’s accommodation facilities accommodated an increase of 62,500 leisure travellers (+8%), 20,600 conference travellers (+47%) and 768 business travellers (+0.3%) more than the previous year. Travellers with other purposes decreased by 15,500 (-35%), which was primarily due to a decrease in health cure travellers.

Comparing the proportion of trips with 2007, the proportion of leisure and conference travel grew, while the proportion of business and other travel shrank.

Analysing numbers of bednights according to purpose of travel, we find that the proportion of leisure travel is 71%, business trips comprise 25% and other travel, 4% of all bednights by tourists. Comparing these results with those of 2007, we see the same trends as in numbers of tourists staying in accommodation establishments. The proportion of business and leisure travel increased, as the proportion of travellers with other purposes decreased.

Leisure travel made up 71% of all foreign tourists’ bednight numbers.

Business travellers spent 26% of the total nights spent in Tallinn, of which 4% were attending conferences. Trips with other purposes made up 3% of the total of foreign visitor bednight numbers.

Foreign tourists' bednights spent by purpose of visit, 2008 c onferenc e 4% business 22%

In comparison with the previous year, both leisure and business trips by foreign tourists have increased, and conference attendance has increased significantly (+16 500 bednights).

Domestic tourists spent half their bednights in Tallinn (51%) for leisure purposes. Business travel accounted for 41%, of which 8% comprised conference attendance. Other reasons accounted for 8% of all bednights by residents of Estonia.

Compared with 2007, the results for 2008 show that the proportion of Estonians’ bednights for leisure travel has risen by a few percentage points, while business travel has fallen by the same amount.

other 3%

leisure 71%

Dome stic to urists' be dnights spe nt by purpo se of visit, 2008

co n fe re n ce 8%

o th e r 8%

b u s in e s s 33%

Source: Statistics Estonia le is u re 51%

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 8

Tallinn’s Accommodation Establishments As of December, 2008, Tallinn has 412 registered accommodation establishments, including 53 hotels, 14 guesthouses, 16 hostels, 307 guest apartments, 18 B&Bs, and 5 camping sites. Compared with the previous year, the number of accommodation establishments increased by 4%, with hotels accounting for 2%. 96 new rooms were added, but the number of beds was reduced. Room occupancy rates decreased by 5% from 2007.

Accommodation 2005 2006 2007 Establishments Nr. of accommodation 301 364 395 establishments incl. number of hotels 46 48 52 Number of rooms in 5 668 6 049 7 076 accommodation est.

Room occupancy rate 60% 58% 55% Number of beds in 10 945 12 130 14 456 accomodation est.

Bed occupancy rate 52% 49% 47% Average cost of a guest 582 598 604 night (kroons)

2008 412

Change 2007/2008 Number % 17 4%

53 7 172

1 96

2% 1%

50% 14 439

-17

-5% 0%

42% 601

-3

-5% 0%

Source: Tourist Office & Convention Bureau of Tallinn City Enterprise Board, Statistics Estonia The revenue of Tallinn’s accommodation establishments from sales of accommodation services amounted to 1.27 billion kroons, according to Statistics Estonia.

As the number of bednights spent by tourists remained the same as in 2007, while the number of rooms increased, the room occupancy rate decreased in all months, throughout the year. In 2008, half of all rooms (50%) were occupied on average, with ocupancy down 5% from 2007. As in earlier years, the room occupancy rate was higher during summer months and lowest in January and February. The highest occupancy rates were in July and August (67% and 65%, respectively), and the lowest were in January (34%), February (39%) and, surprisingly, also December (39%).

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 9

kroons

Average cost of a guest night and room occupancy rate in Tallinn 800

80

700

70

600

60

500

50

400

40

300

30

200

20

100

10

be r

be r

De ce m

No ve m

ct ob er O

be r

t

Se pt em

Au gu s

Ju ly

Ju ne

ay M

Ap ril

ar ch M

Ja nu a

ry

0 Fe br ua ry

0

%

2007 average cost of a guest night, kroons

2008 average cost of a guest night, kroons

2007 room occupancy rate, %

2008 room occupancy rate, %

Source: Statistics Estonia According to data from the Estonian Hotel and Restaurant Assocation (EHRL), the room occupancy rates in Tallinn’s hotels was better than in other accommodation establishments, but nevertheless lower than the previous year. In 2007, the occupancy rate among EHRL member hotels was 59%, while in 2008 occupancy fell to 53%.

A night’s stay in Tallinn’s accommodation establishments cost 601 kroons on average, 3 kroons less than last year (0%). An average guest night in EHRL member hotels was higher (893 kroons), but compared with the previous year, the cost of a room fell more than in other accommodation establishments (-8%).

Travellers in Tallinn Airport In 2008, regular direct flights flew from Tallinn Airport to 29 destinations, with 2 additional destinations compared to the previous year. The highest demand out of Tallinn Airport was for flights to Helsinki, London, and Stockholm. The largest market share in Tallinn Airport is held by Estonian Air (41%), followed by easyJet (9%) and Finnair (8%).

Altogether, 11 airlines offered regular flights.

1.81 million passengers came through Tallinn Airport in 2008. International flights comprised 98.8% of all passenger numbers, with 1.2% on domestic flights. Compared with 2007, the number of passengers in Tallinn Airport grew by 5%, or 83,100 passengers. The two previous years had seen 10% growth.

Analysis of the number of passengers by month shows that the number of passengers grew in the first half of the year, stopped growing in the summer months, and fell in the last two months of the year. The largest growth in passenger numbers was in April (+17%) and February (+16%), while the largest decline in passenger numbers was in December (-14%) and November (-12%).

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 10

Passengers in Tallinn Airport, 2000-2008 2000 1800

20

thousands

1600 1400

23

21

22

1200 1000

18

800 600 400 200

16

5

15

554

568

591

700

2000

2001

2002

2003

6

1378

1519

1708

1790

2007

2008

979

0

international flights

2004

2005

2006

domestic flights

Source: Tallinn Airport The results of a study conducted by Tallinn Airport showed that Estonians make up 48% of passengers on regular international flights. International passengers mostly include residents of Sweden, Russia, Norway, Finland, the UK and Germany – in other words, travellers from Tallinn’s priority target market countries. Compared with earlier years, in 2008 the proportion among all passengers of Swedes, Norwegians, and Russians grew.

Numbers of passengers aboard Estonian Air flights grew by 1.5%, reaching 757,000 passengers (including 685,600 passengers on regular flights). Flights were 68% full, which was the same as in 2007. Passenger numbers grew by a sixth over the first five months of the year (17%), stopped growing in June, and began to fall in the final months of the year.

Passengers in Tallinn Old City Harbour While the two previous years saw a decline in numbers of passengers passing through Tallinn Old City Harbour, in 2008, the number of passengers grew by 12%, or 757,000 passengers. 7.21 million passengers passed through Tallinn Old City Harbour in 2008, an all-time record.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 11

Passengers in Tallinn Old City Harbour, 2000-2008 9000 8000

thousands

7000 6000 5000

+15%

+14%

-6%

+3%

-2%

5989

5622

5812

5727

2000

2001

2002

2003

+12%

+4%

6591

6855

-4% 6588

2004

2005

2006

-2% 6458

7215

2007

2008

4000 3000 2000 1000 0

Source: Tallinn Harbour The greatest share of the passengers in Tallinn Old City Harbour were passengers on the Tallinn-Helsinki line, comprising 84% of all passengers (6.06 million passengers, or +10%). The growth in passenger numbers was positively affected by three new ships being added to the Tallinn-Helsinki line, increasing the convenience and flexibility of sea travel. 777,000 passengers travelled on the Tallinn-Stockholm line, which reflected a growth of 14% from the previous year.

Cruise passengers comprised 6% of all Old City Harbour passengers in 2008, totalling 375,500 passengers. Cruise passengers made up 15% of all international tourists. Unlike the previous year, when the number of cruise passengers decreased, a notable growth was seen in 2008. The number of cruise passengers increased by 28%, or 83,000 passengers.

Cruise ships and passengers in Tallinn 400

375

350

324

thousands

300 236

250 200

186

150 100

92

187

173

106

110

1999

2000

175

165

134

127

2001

2002

232

294

299 268

298

311 292

204

205

2003

2004

50 0 1998

cruise passengers

2005

2006

2007

2008

cruise ships calls

Source: Tallinn Harbour Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 12

In 2008, cruise ships paid 298 calls to Tallinn, amounting to 30 harbour calls more than the previous year (+11%). The greatest number of cruise ship calls was in July (79 harbour calls).

Of the cruise passengers who visited Tallinn, 21% originated from the USA, 18% from Great Britain, 15% from Germany, 13% from Spain, 6% from Italy, 6% from Sweden, and 5% from Canada. Compared with last year, cruise passenger numbers grew in the largest primary destinations: the USA (+20%), Great Britain (+30%), and Germany (+19%). Compared with last year, cruise tourists included significantly more tourists from Spain (+91%), Sweden (+59%) and Canada (+45%).

According to the Tallinn Foreign Visitors Survey, half (48%) of cruise tourists were over 55 years of age, most of them were travelling with a companion (92%), and they included both people in employment (59%) and pensioners (32%). Compared with earlier years, numbers of younger people and employed people have risen.

According to both the Tallinn Harbour cruise passenger survey and the Tallinn Foreign Visitors Survey, passengers were satisfied with their experience from the trip to Tallinn, and a majority (57%) thought that they would come to Tallinn on a holiday in the future.

On average, each cruise tourist spent 242 kroons on shopping during their time in Tallinn, which was 125 kroons less than a year earlier. Tallinn Harbour estimated financial profits from cruise tourists to come to appproximately 90 million kroons.

Tallinn’s Revenue from Tourism In 2008, Estonian export of tourism services (that is, all expenditures in Estonia by foreign visitors in connection with their trip, including accommodation, dining, entertainment, shopping, etc.) totalled 17.6 billion kroons (according to the Bank of Estonia), of which Tallinn’s share of the revenue can be estimated at nearly 14.9 billion kroons.

Compared with 2007, the export of travel services grew by 10%, or 901 million kroons, for a total of 10.2 billion kroons. Adding to that 4.7 billion kroons from the export of passenger transport (payments by foreign visitors to Estonian transportation companies), we arrive at a total of 14.9 billion kroons for Tallinn’s total export of tourism services.

This is 1.2 billion kroons, or 9%, greater than in 2007.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 13

Total receipts from international tourism, 2000-2008 (billion kroons) 16000 14000 12000 2813

10000 8000

2980

2900

6880

7117

7319

7520

2000

2001

2002

2003

2532

2700

4327

4713

3264

6000 4000

4182

8880

9400

10105

9382

2004

2005

2006

2007

10283

2000 0

international travel receipts

2008

international fare receipts

Source: Bank of Estonia

Visits to Tallinn Tourist Information Centres In 2008, Tallinn’s two Tourist Information Centres (in the Old Town and Viru Shopping Centre) were visited by a total of 173,900 visitors, 92% of whom were from countries abroad (160,000 visitors), and 8%, or 13,800, were from Estonia.

Compared with 2007, the number of visitors has grown by 7%, or 11,300 visitors. The growth in visits came primarily during the low season (autumn and winter months), whereas the decline in visits came during the high season (in August). Altogether, visitors came from 115 countries, with the farthest destinations including Tanzania, New Zealand, Nepal, Indonesia, Malawi, Fiji and Bahrain.

Comparison of the visitors to the Tourist Information Centres by country of origin shows that Finns were the most frequent visitors in 2008, at 17% of all visitors. They were followed by Germans, at 13%, Brits 9%, Swedes and Estonians (8% each), and Russians 7%. Compared with the previous year, the most notable growth in visits to the Tourist Information Centres was among Russians (+72%), Lithuanians (+48%), and Germans (+20%).

Visits by Norwegians to the TICs dropped by a surprising amount (-38%), which may be explained by the drop in Norwegians staying in Tallinn accommodation. Decreasing figures were also seen in visits by Swedes, Italians and Latvians, which may be due to the shortened trips by residents of those countries.

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 14

Visits Visits Change Country of Origin 2008 2007 2007/2008 Finland 27 100 1 800 7% 28 900 Germany 18 600 3 600 20% 22 300 Great Britain 15 400 -300 -2% 15 000 Sweden 13 700 14 800 -1 100 -8% Estonia 13 800 14 300 -400 -3% Russia 7 200 5 200 72% 12 300 Spain 11 300 9 700 1 600 16% USA 10 900 9 800 1 000 11% France 6 500 500 8% 7 000 Italy 6 300 -500 -9% 5 800 Norway 6 600 -2 500 -38% 4 100 Latvia 2 500 -200 -9% 2 300 Lithuania 1 100 600 48% 1 700 Total 173 900 162 600 11 300 7% Source: Tourist Office & Convention Bureau of Tallinn City Enterprise Board

Proportion 17% 13% 9% 8% 8% 7% 6% 6% 4% 3% 2% 1% 1% 100%

Visitors to the Tallinn City Tourist Information Centres 40000 35000 30000 25000 20000 15000 10000 5000

2005

2006

2007

be r De ce m

be r No ve m

O

ct ob er

be r

t

ep te m S

Au gu s

Ju ly

Ju ne

ay M

Ap ril

ar ch M

Fe br ua ry

Ja nu a

ry

0

2008

Source: Tourist Office & Convention Bureau of Tallinn City Enterprise Board 147,700 queries were fielded at the Tourist Information Centres in 2008, which was nearly 10,800 queries more than the previous year. The most frequent topics of interest among visitors were transportation connections, city maps and shopping information. There was more interest in museums and sights than earlier, but fewer queries about shopping and services.

Compiled by: Karen Alamets, analyst, Tallinn City Enterprise Board Tourist Office & Convention Bureau

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 15

Tourists accommodated in Tallinn, number of nights spent and length of trip Country of Origin

Accommodated

Change 2007/2008 Number %

Bednights

Change 2007/2008 Number %

Length of Trip

Austria

6 411

2 060

47,3

15 060

4 396

41,2

2,35

Belgium

5 462

639

13,2

11 525

2 004

21

2,11

Bulgaria

751

2

0,3

1 729

-275

-13,7

2,30

Croatia

575

-323

-36

1 263

-711

-36

2,20

Cyprus

544

133

32,4

1451

292

25,2

2,67 2,30

Czech Republic

3 722

-440

-10,6

8 558

-31

-0,4

11 273

291

2,6

24 599

1 127

4,8

2,18

Finland

508 962

34 422

7,3

726 392

40 954

6

1,43

France

14 121

886

6,7

30 836

668

2,2

2,18

Germany

59 907

4 549

8,2

130 783

10 213

8,5

2,18

Great Britain

102 653

-26 622

-20,6

2,46

Denmark

41 762

-8 884

-17,5

Greece

2 239

-245

-9,9

5 359

-640

-10,7

2,39

Holland

8 608

-234

-2,6

20 344

-814

-3,8

2,36

Hungary

2 830

-23

-0,8

6 964

-5 975

-46,2

2,46

Iceland

888

-1 019

-53,4

2 087

-3 764

-64,3

2,35

Ireland

2 547

-339

-11,7

6 622

-1 591

-19,4

2,60

Italy

21 828

1 768

8,8

51 735

414

0,8

2,37

Latvia

36 247

240

0,7

56 195

-6 075

-9,8

1,55

Lithuania

11,5

46 630

3 492

8,1

1,72

27 173

2 808

Luxembourg

616

220

55,6

1405

481

52,1

2,28

Malta

202

121

149,4

656

406

162,4

3,25

Norway

39 167

-6 671

-14,6

97 095

-17 495

-15,3

2,48

Poland

15 594

1 135

7,8

28 176

1 757

6,7

1,81

2 346

-16

-0,7

5 752

516

9,9

2,45 2,50

Portugal Romania Russia Slovakia Slovenia

940

76

8,8

2 348

-19

-0,8

61 845

21 129

51,9

132 227

30 282

29,7

2,14

917

321

53,9

2 067

410

24,7

2,25

895

115

14,7

1 806

-93

-4,9

2,02

Spain

15 533

634

4,3

34 453

3 471

11,2

2,22

Sweden

62 274

-834

-1,3

109 666

-2036

-1,8

1,76

Switzerland

5 087

12 36

32,1

9 787

1 396

16,6

1,92

Turkey

2 550

1 764

224,4

5 007

2 687

115,8

1,96 2,52

Ukraine Other European countries African countries Asian countries

3 930

875

28,6

9 914

1 975

24,9

16 947

3585

26,7

35 994

3 762

11,5

2,12

1 028

212

26,0

2 405

44

1,9

2,34

11 090

780

7,6

2 1641

453

2,1

1,95

incl. China

1 613

743

85,4

3 838

369

10,6

2,38

incl. Japan

5 868

-350

-5,6

1 0437

-870

-7,7

1,78

668

-43

-6,0

1 126

-335

-22,9

1,69

2384

-274

-10,3

5 855

-867

-12,9

2,46

incl. South Korea Canada South and Central American countries USA Australia, Oceania Other countries Total foreign tourists Total Estonian residents Grand Total

2 274

505

28,5

4 986

1 285

34,7

2,19

16 223

-2 778

-14,6

3 8879

-7 488

-16,1

2,40

4 298

-561

-11,5

9 988

-1 503

-13,1

2,32

477

-630

-56,9

1 095

-2 073

-65,4

2,30

1 022 467

57 235

5,9

1 811 987

34 413

1,9

1,77

166 058

-9 474

-5,4

284 709

-39 939

-12,3

1,71

1 188 525

47 761

4,2

2 096 696

-5 526

-0,3

1,76

Tourist Office & Convention Bureau of Tallinn City Enterprise Board 05.05.2009 16