COVID-19 pandemic pushed up accommodation prices and boosted domestic tourism

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Posted on 13 September 2024, 10:29, Marcus-Meinhard Rauniste, statistika levi osakond

According to Statistics Estonia, in 2023, the average expenditure of Estonian residents on overnight outbound trips was greater than in the period before the COVID-19 pandemic. The average spending on outbound trips has increased by 43% in the years 2018–2023. The number of tourists accommodated in Estonia has not yet reached the pre-pandemic level, but the share of domestic tourists has increased significantly compared with 2018.

“Following the coronavirus crisis, travelling has become more expensive in general,” said Sigrid Saagpakk, analyst at Statistics Estonia. In 2018 before the pandemic, people spent the most, on average, on holiday trips (838 euros), while in 2023 they spent the biggest amount on business trips (798 euros in 2018, 1,280 euros in 2023). The average expenditure on outbound holiday trips in 2023 was 1,150 euros. In this six-year period, trips made to visit friends and relatives have continuously had the lowest average expenditure (386 euros in 2018, 537 euros in 2023).

Residents’ expenditure on an overnight outbound trip by main purpose of trip, 2018–2023

The average expenditure on domestic trips is significantly lower than average expenditure on outbound trips. Overall, the average spending on a domestic trip was 125 euros in 2018 and 179 euros in 2023. Usually, residents spend more on a holiday trip than on a business trip. “An exception here is the year 2022 when the average expenditure on domestic business and holiday trips was 306 and 205 euros, respectively. There may be various social, economic and political factors behind this. Pandemic-related restrictions were relaxed in 2022, which may have contributed to employers’ readiness to set up more face-to-face meetings with partners,” said Saagpakk.

Overnight stays have become more expensive in Estonia

The average cost of a guest night in Estonia in 2023 was 46 euros; it was 39 euros right before the coronavirus outbreak. “It should be noted that this includes all overnight stays, regardless of whether it was single or multiple occupancy or whether the guest stayed in a hotel, guesthouse or homestay accommodation,” explained Helga Laurmaa, leading analyst at Statistics Estonia. In 2020 and 2021, when guest numbers were low due to the coronavirus crisis, the average cost of an overnight stay was also lower, about 32–34 euros. In all these years, overnight accommodation has been the most expensive in Tallinn, followed by Tartu city. 

“In addition to the coronavirus, there were many other factors that affected prices in the tourism sector. On the county level, the average cost of a guest night also depends on the amount of more expensive and more affordable accommodation establishments, and on occupancy rates,” said Laurmaa.

 

Share of domestic tourism has increased

In 20182019, over half of the guests served by accommodation establishments were foreign tourists. “After March 2020, when Estonia faced the healthcare crisis and travel restrictions were introduced, the accommodation sector received a boost from domestic tourism as many people used the services of local accommodation establishments,” noted Laurmaa. In April and May 2020, there were very few overnight visitors and many accommodation establishments were closed, while already in July 2020 the number of domestic tourists exceeded the 2019 level.

The number of overnight domestic trips was 4.4 million in 2018, 3.5 million in 2019, and dropped down to 2.1 million during the coronavirus crisis. After the pandemic, there has been a trend of gradual recovery, but the number of overnight domestic trips has still not returned to the pre-pandemic level, as it was 3.2 million in 2023.

Share of domestic and foreign tourists in Estonian accommodation establishments, 2018–2023

Harju county is the most popular destination

The top five tourist destinations did not change during these six years. Regionally, foreign tourists preferred to stay in Harju county, including Tallinn city. “In Tallinn, the main attraction is undoubtedly the Old Town which is a UNESCO World Heritage Site,” said Laurmaa to explain why Tallinn is popular among tourists.

Other popular destinations are counties with a major attraction, such as Pärnu city with its beach, Tartu city with its university town atmosphere, or Kuressaare city on Saaremaa Island. Kuressaare also has the episcopal castle which is the best-preserved fortress in the Baltic countries. Ida-Viru county used to have many visitors from Russia, but inbound tourism from the eastern neighbour is now restricted. 

There are fewer foreign tourists accommodated in Jõgeva, Järva and Rapla counties. “Given the small size of Estonia, tourists visit the sights in these counties but then drive on to other destinations and do not stay overnight,” explained Laurmaa.

 

Statistics Estonia collects and analyses accommodation data for the Ministry of Economic Affairs and Communications with the aim to determine the economic situation in Estonia.

See also the dedicated section on tourism, accommodation and food service and the tourism industry dashboard.

More detailed data have been published in the statistical database.

When using Statistics Estonia’s data and graphs, please indicate the source.

 

For further information:


Heidi Kukk
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee (press[at]stat[dot]ee)

 

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