Overall, the trend shows the number of domestic tourists has either stayed the same as June 2023 or fallen.

"As expected in spring, this summer will not be as good as last year," Kairi Lusik, managing director of the Viiking Spa Hotel in Pärnu, told ERR. 

While fewer locals booked overnight accommodation in June in the summer capital, Lusik said the number of foreign tourists has risen. "We were able to increase the number of tourists from Finland and Latvia, and the average length of stay increased," she said.

Arensburg Boutique Hotel & Spa in Kuressaare on the island of Saaremaa also reported differing trends among its customer base.

"June was a busy month for us, but it was quieter than last year and the number of visitors was slightly down. On the positive side, however, the restaurant at the Arensburg Hotel had significantly more customers in June than last year. Last May was also affected by the water crisis in Kuressaare, so it has not been difficult to achieve better results for May 2024," said CEO Terje Nepper.

"Visual observation reveals a significant decrease in the number of tourists in Kuressaare," she added.

In Kuressaare Johan Spa Hotell, Meri Seaside Hotel & SPA and Ö Suites & Spa, the number of tourists, both domestic and foreign, was similar to June 2023. Johan Lõuk, Johan GTJ board member, who owns the spa hotels, said the company is satisfied with this summer.

Spa Estonia, which owns the Estonia Medical Spa and Hotel and Estonia Resort Hotel and Spa in Pärnu, has not seen a rise in domestic customers this year. However, there was an increase in April and May, which has since ended.

"June started at a very leisurely pace after a busy and fast-paced May, but it was still a pleasure to see that the second half of June was already very busy with visitors. The general trend for the summer is similar to last summer, with bookings being made at the last minute and activity very much dependent on the weather. Foreign tourists plan their holidays further in advance, but domestic tourists tend to decide at the last minute, depending on the weather or events in Pärnu," ​​explained Kairi Jõekäär, head of the sales and marketing department.

Occupancy percentages remained more or less the same at the company's two spa hotels – both complexes saw changes of 1 percent. The share of Estonian visitors fell, while foreign visitors grew.

Lauri Teorein, manager of Hestia Hotel Haapsalu Spa, said approximately 300 more guests stayed in their hotel last month than in June 2023, but this did not affect their revenues.

"The vast majority of our visitors are Estonians. In addition, Finns and Latvians can be mentioned among the summer customer groups," Teorein said.

However, this year bookings have been more volatile. "If, last year, bookings were steady throughout the month, then this year the intensity of bookings is dropping noticeably drops off noticeably at the end of the month as payday approaches," he said.

In addition, Teorein linked the unstable booking behavior to price rises.

"While there is already a lot of moaning about high prices, which does not really reflect our real cost base (30-40 percent higher than two years ago), another VAT increase will make accommodation even more expensive, which will reduce demand. It will also make us less competitive on foreign markets, where hotel prices are already on a par with those of Finland," he said.

As well as fewer overnight stays, several companies said demand for additional services has fallen. Increased prices and a drop in customers looking to save money were cited as the main reasons.

"We are constantly hearing from our guests how all the prices in Pärnu have become very expensive, and this is definitely influencing their purchasing decisions. It is often seen that guests prefer the cheaper options of street food and would rather save money on the hotel restaurant and spa treatments," stated Jõekäär.

This trend is not new and was already reported in Pärnu in the spring.

Viiking Spa Hotel's Lusik said it is also possible the summer capital's new parking regulations contribute to the decrease in customers.

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