Travel Reference
In-Depth Information
improvement of the condition of the Baltic. The
Baltic countries are already collaborating in
attracting large cruise liners, and if pollution is
reduced, it will influence the attractiveness of
the Baltic as a cruise destination (notwith-
standing that some cruise liners can produce
considerable marine pollution). Although St
Petersburg is not involved in this cooperation, it
is still the prime Baltic attraction for American
cruise lines, for example.
Recently, both Turku and Helsinki have
started novel forms of collaboration with the cit-
ies of Estonia. If Finland and other countries in
the Baltic Sea region are going to place the
archipelago and the sea as main attractions in
their international marketing, the quality of the
water will be a key factor. Direct flights from
Finland to certain Baltic cities and especially low
cost airlines offer new possibilities, such as city
breaks for new markets. Volumes will not be
big, however, because of the poor economic
situation of the countries concerned. The repre-
sentatives of the cities believe, however, that
with the help of different events and other major
attractions the new EU member travellers could
be persuaded to travel north instead of to mid-
Europe.
noisy families with children and the over-55s
who want peace and quiet.
In the short term, the lower level of wages
in the Baltic will influence the competition in
passenger ship traffic. Consequently, the market
shares of the shipping companies in Estonia,
Finland and Sweden will be reallocated. The
Baltic countries' accession eliminated the mar-
ket for tax-free trade, so the shipping companies
have been forced to rethink their strategies. This
has brought about versatile product supply and
increased programme offerings. In the long run,
the increased supply is expected to show in
increased demand. Subsequently, the weakest
companies will be eliminated from the market
and the good ones will survive. This is consi-
dered to be a positive development.
The Baltics' accession has also brought
some distinct drawbacks to the Finnish national
airline. Previously, the main part of the air traffic
between Tallinn and Helsinki consisted of con-
necting flights, but now direct flights from
Tallinn are also possible, so there is no longer a
need to fly through Helsinki.
Although Finland reduced alcohol taxes as
Estonia was about to enter the EU, the high
prices and monopoly position of the Finnish
government in the alcohol market presents
problems for the hospitality, travel and tourism
industry. It is now much cheaper to spend
weekends, have business parties, birthdays and
other family celebrations in the restaurants of
Tallinn than in those of Helsinki. In addition,
there is now a possibility to import alcohol and
other purchases much more advantageously
and without restrictions. Consequently, many
Finnish customers, private or business, prefer
Tallinn to Helsinki.
Other Baltic countries are also predicted
to become competitors in MICE markets. New
destinations, like Riga, have always been inter-
esting for conference organizers, but both Latvia
and Lithuania have a lot to learn before they
can achieve important positions in MICE mar-
kets. Especially in Estonia, old mansions and
castles have been renovated for the use of tour-
ists, and for Finnish conference visitors these are
exotic and therefore attractive alternatives. More-
over, in the future when interesting programmes
are developed to suit these historic surround-
ings, this area will also become a competitor in
incentive travel markets.
Threats
The lively spa culture in Estonia forms a threat
to the Finnish spa industry. Rehabilitation that is
meant for working people to maintain their
ability to work is a growing business. Moreover,
more and more Finnish senior citizens are using
these wellness services. Estonia and other Baltic
countries have a long history of rehabilitation,
well-being and relaxation services. Their price
level is considerably lower than in Finland and
their service quality levels have risen noticeably
in recent years. Many completely new spas have
been built in Estonia and old ones have been
renovated to meet the requirements of Western
customers.
It is predicted that in the near future the
social insurance institution of Finland will fund
rehabilitation provided to Finnish citizens in
other EU countries such as Estonia, if it is more
economical than in Finland. Most of the spas in
Finland have not segmented their markets and
they simultaneously try, for example to serve
