Estonia’s travel and tourism economy accounts for around 3.5% of the country’s gross domestic product (GDP) and in 2010, tourism (both domestic and international) generated US$1.81 billion in revenue – slightly less than in 2009. The tourism industry is tiny compared to the export sector (US$11.52 billion in revenue in 2010) and Estonia attracts only 1.5 million tourists in any given year – the majority from Finland and neighbouring Russia.

While those figures are low, inbound tourism has, nonetheless, grown slightly during the past five years. In 2010, the number of arrivals from Finland hit 832,874 (up from 707,124 in 2007), while from Russia the number of arrivals reached 141,964 – almost double the total for 2007.

The increase was due, in part, to more frequent ferry and intercity bus services between Estonia and its two largest source markets. The easing of visa restrictions for Russian tourists also played a role, as have the low food and accommodation prices in Estonia, which attract budget-conscious Finns.

Tallinn accounts for well over half of all tourist arrivals and in 2010 it welcomed 1.3 million visitors –1.1 million of which were international travellers. This year, Tallinn will be in the tourism limelight. One of two ‘European Cities of Culture 2011’ (the other is Turku in Finland), it is hosting a plethora of celebrations and cultural events, expected to draw thousands more visitors to the historical capital.