Estonia dropped five places from last year to 30th in the 2013 Travel & Tourism Competitiveness Index published by the World Economic Forum (WEF).
Estonia scored the highest points in health care and hygiene and tourism infrastructure, while its score was lowest in cultural resources.
Latvia meanwhile improved its ranking to 48th from 51st a year ago and Lithuania progressed from place 55 to 49.
The latest report assesses 140 economies worldwide based on the extent to which they are putting in place the factors and policies to make it attractive to develop the travel and tourism sector.
Among countries of Europe Estonia ranks 20th, Latvia 29th and Lithuania 30th.
Estonia ranked 10th by regulatory framework, 30th by business environment and infrastructure and 51st by human, cultural and natural resources for tourism.
Places 1 and 2 in the table are occupied by Switzerland and Germany, with Austria, Spain, Britain, the United States, France, Canada, Sweden and Singapore making up the rest of the top 10.
Finland was unchanged in 17th place while Russia was down in 63rd compared with 59th a year ago. Georgia was one of the countries that posted a significant improvement, climbing from 73 to 66.