Travel Reference
In-Depth Information
positive growth phase and undergoing a market
reorientation away from same-day visitors and
an over-reliance on the Finnish market. As a
replacement, Tallinn appears to be developing
as a year-round city break destination for more
distant EU markets. In addition, market niches
are developing in segments such as spa tourism,
cruise tourism, conference tourism (Enterprise
Estonia/Estonian Tourist Board, 2004b) and
backpackers (Clark and Jarvis, 2005). Member-
ship of the EU has had a significant role in this
growth and the development of the industry.
There are three broad arguments that can be
proposed on how membership has impacted
upon the industry.
conveyed some of the attributes associated with
the union to 'Brand Estonia', most notably in
regard to issues of perceived safety and security
(Managing Director of the Estonian Association
of Travel Agents, personal communication).
In expectation of a considerable increase
in visitor flows (especially overnight visitors)
after EU accession, the accommodation and
spa sectors attracted substantial investments
(D. Visnapuu, Managing Director of Estonian
Hotel and Restaurant Association, personal com-
munication). This investment flow has resulted in
a 33% increase of bed places between January
2003 and July 2004. During the same period,
the number of bed places in Tallinn increased by
37% (Enterprise Estonia/Estonian Tourist Board,
2005). Figure 13.4 shows an investment peak in
2003 as membership of the EU drew nearer.
Additionally, in order to further develop the
industry, tourism infrastructure development and
marketing funds were also available for strategic
projects under the EU's PHARE project prior to
May 2004 (Enterprise Estonia, 2005).
EU membership fostered a positive
business climate and stimulated
investment in infrastructure: increased
supply
The move towards the EU, in association with
Estonia joining NATO in March 2004, gene-
rated a favourable business climate that
increased the perception of security for both
investors and tourists. This in turn led to incre-
ased investment in accommodation and the
marketing of Estonia (including the launch of
the 'Welcome to Estonia' brand), which in turn
contributed to the stimulation of increased visi-
tor flows. In terms of tourist perceptions of the
destination, the linking of Estonia to the EU
Regulatory changes associated with
EU membership stimulated increased
transport access and removal of border
controls: ease of access facilitated
increases in demand
The structural changes associated with moving
toward EU membership facilitated streamlined
20,000
17,224
18,000
16,347
16,000
14,000
12,000
10,000
8000
4946
5813
4043
3747
6000
2484
2386
4000
4911
2647
2000
1388
0
1994
1995
1996
1997
1998 1999
Ye ar
2000
2001
2002
2003 2004
Fig. 13.4.
Estonia: foreign direct investment in hotels and restaurants, 1994-2004 (?000s).
Source: Enterprise Estonia/Estonian Tourist Board, 2005.
