EconMin: Estonian domestic tourism emerging from shadow of pandemic

TALLINN - According to Aleksandr Michelson, tourism advisor at the Estonian Ministry of Economic Affairs and Communications, although there are somewhat fewer foreign trips compared to the pre-pandemic period, 2024 was still a successful year for the tourism sector -- both domestic tourism and the turnover and profit indicators of tourism companies increased.

Estonian residents made over 1.5 million overnight outbound trips in 2024, which is 2 percent more than in 2023, and there were nearly 3.5 million overnight domestic trips last year, up by 8 percent from 2023, according to Statistics Estonia.

"Although the level of overnight foreign trips is still slightly lower than in pre-pandemic 2019, the number of overnight domestic trips has almost recovered to the previous level. There were 3.5 million domestic trips in 2019," Michelson said in a press release.

He pointed out that in addition to the number of trips, the number of overnight stays is also growing -- on domestic trips by 4 percent compared to 2023 and by as much as 8 percent compared to 2019. However, the number of nights spent on foreign trips increased more modestly, by 8 percent compared to 2023, but by less than 1 percent compared to 2019.

"The increase in the number of domestic tourists has a positive impact on regional entrepreneurship. In 2024, domestic tourists spent an average of 184 euros per domestic trip with an overnight stay, which is 3 percent more than in 2023 and 39 percent more than in 2019. There has been a particularly large increase when it comes to business trips. In 2024, domestic tourists spent an average of 226 euros on a business trip with an overnight stay, which is 22 percent more than in 2023 and a whopping 58 percent more than in 2019," the advisor added.

Compared to spending on domestic travel, Estonian residents' spending on overnight trips abroad grew more slowly. In 2024, an Estonian spent an average of 1,102 euros on overnight trips abroad, 2 percent more than in 2023 and 33 percent more than in 2019. Of the 1,102 euros, approximately 380 euros went to transportation, 342 euros to accommodation, 233 euros to food, and the rest to entertainment and shopping.

Estonian residents prefer to travel either to neighboring countries or to countries with a warm climate in southern Europe. European Union countries still account for 73 percent of Estonian residents' foreign trips. The most popular destinations are Finland, with 11 percent of overnight trips abroad, Latvia, also with 11 percent, Sweden and Spain with 7 percent and Italy with 6 percent. The largest growth compared to 2023 was registered for Sweden, where the number of overnight trips abroad by Estonian residents increased by 48 percent. Spain follows with a 32 percent and Lithuania with a 14 percent increase.

"Overall, it can be seen that the growth of domestic tourism has been significant and its impact is also reflected in the economic indicators of Estonian companies. According to Statistics Estonia's flash statistics, or preliminary estimates, sales revenues and profits from both accommodation and catering increased last year. Based on VAT returns, the turnover of accommodation and catering companies increased by 6.4 percent in 2024 compared to the previous year. The growth of tourism companies is also supported by the number of overnight stays by foreign tourists. According to Statistics Estonia, foreign tourists spent 9 percent more nights in Estonia in 2024 than in 2023," Michelson added.