Estonia to invest EUR 123 mln in tourism sector in 2014-2020

Photo: Mihkel Maripuu / Postimees

The government here on Thursday endorsed the Estonian National Tourism Development Plan 2014-2020 under which the state will invest an estimated 123 million euros in the tourism sector with the aim of boosting its volume by almost one-third by 2020.

The development plan supports both private and public sector investments as a result of which export revenue from tourism services would grow to 1.6 billion euros by 2030, marking an increase of nearly 30 percent over 2012, the Ministry of Economy and Communications said.

The number of overnight stays by foreign tourists at Estonia's accommodation establishments is estimated to grow to 5 million and of stays by domestic tourists to 2.1 million, numbers that are respectively 31 percent and 23 percent bigger than in 2012.

The minister of economy and communications, Juhan Parts, said the tourism sector has become ever stronger in recent years and it maintained a very good health also during the difficult years.

«The kind of growth that we saw in the last couple of years is definitely difficult to repeat in the future, but it is a challenge for us indeed,» said the minister.

He said that where in the previous seven years Estonia focused primarily on the construction and renovation of tourism facilities, in the new period the whole existing infrastructure must be made to work as effectively as possible.

In the new period smarter use of the investments already made will be in the focus, the ministry said. The document calls for region-specific development plans to be set out for North Estonia, South Estonia, West Estonia and Tallinn so that when visiting one of these regions a tourist would reach as many tourist sites as possible.

In order to improve the Estonian tourism sector's position in international competition the government will go on promoting awareness of Estonia as a travel destination in neighboring countries and elsewhere.

Help will be extended for the organization of international events and conferences and the establishment of attractions creating international interest supported. For instance, a state-of-the-art conference center and a network of small harbors need to be developed in Estonia.

In addition to urban and maritime tourism the development plan deals with improving the quality of products in cultural tourism, nature tourism and health tourism and designing of services.

Under the previous development plan about 200 million euros was channeled into the tourism sector in 2007–2013.

Together with indirect impact tourism is seen to contribute 6.3 percent of Estonia's gross domestic product. The sector also accounts for a significant share of the export of services, where it made up 29 percent of total volume in 2012, and in overall exports, where it accounted for 7.4 percent.

Activities under the development plan are financed from EU structural funds and the Estonian state budget.