Estonia is a small country whose visibility to foreign tourists doesn't happen on its own. Our services and experiences reach the world through purposeful tourism marketing, product development and the impressions shared by the guests who visit.

Every euro spent in Estonia by a foreign visitor is an export of services — additional money that stays in circulation here, grows the economy and helps maintain jobs. Tourism accounts for about 7 percent of our economy and creates nearly 30,000 jobs across the country. In 2024, tourism services made up over 17 percent of Estonia's service exports, and for comparison, in 2019 that figure was around 30 percent. This is why tourism is not a minor or marginal sector, but one of the key drivers of Estonia's service exports.

Tourism as an empowering sector

Tourism doesn't bring in money only for hotels, restaurants and travel agencies. When a guest spends one euro in Estonia, part of that money flows into other sectors as well: a farmer sells raw ingredients, a baker bakes, a bus driver provides transport, museums and concert halls earn ticket revenue and shops make sales.

This generates an additional €0.45 in value elsewhere in the economy. In other words, every euro from a tourist sets an entire chain in motion and boosts the broader economy. And the reverse is also true — when other sectors develop, such as improved transportation or more engaging cultural programs, it becomes easier for tourism to grow.

Tourism is also a clear source of revenue for the state. Foreign visitors' spending brings in more in taxes (VAT, labor taxes, excise duties) than the state spends on supporting tourism and maintaining infrastructure.

Orders increase, jobs are maintained and tax revenue grows regionally as well — from a small harbor in Lääne County to a handicraft shop in Setomaa, where visitors stop to browse and buy, keeping local services, shops and eateries running even in the off-season. These businesses are often the only employers in the area. Compared to other sectors, the impact of tourism is highly significant. The size of the tourism sector is roughly twice that of agriculture, forestry and fishing combined; it amounts to about two-thirds of the construction sector and about one-third of the entire manufacturing industry.

Results through cooperation

Tourism is a unique form of export because, unlike traditional exports where a product or service is delivered to a consumer outside of Estonia, in tourism the consumer comes to us. Tourism exports also can't be measured by the performance of a single company, since the visitor experience is created through the cooperation of many players: destination marketing and development, international connections (flight and ferry routes), events and their organizers, travel agencies, hotels and restaurants, guides and attractions, as well as the coordinated efforts of the tourism board, cities and the state.

In Estonia, this collaboration has been carried out systematically for nearly 30 years, and thanks to that, the number of overnight stays by foreign visitors grew from under one million to 3.7 million before the pandemic. The COVID years brought those numbers nearly to zero, but the coordinated ecosystem demonstrated a strong ability to adapt and a high growth potential. Visibility, trust and a reason to visit — and to recommend Estonia or return — are all created together. That's precisely why marketing and development in tourism are inseparable and require a synchronized institution that serves both visitor needs and export growth.

Business tourism faster way to grow exports

The tourism sector development plan, "Tourism Long View 2025–2035," places emphasis on business tourism, as it drives export growth more rapidly and consistently throughout the year. Currently, business travelers make up about 16–18 percent of all visitors.

However, the sector cannot be developed with a single focus. For example, even if a major conference center is built in Tallinn and new conference facilities are developed elsewhere in Estonia, the estimated annual added value would be around €25 million — a relatively small impact. Growing business tourism requires additional marketing resources and overall volume and visibility still come primarily from leisure tourism.

Conferences come to Estonia through targeted sales, a strong local offering (conference venues, hotels, transportation connections) and clear partnerships. A convincing pitch is essential (why should Estonia be chosen as a conference destination?) as is an on-site visit, during which decision-makers assess access, smooth organization and price competitiveness.

At present, large-scale conferences — and the business travelers who spend more per visit, along with the attention of investors and media — are going elsewhere. Yet conference tourism also generates knowledge transfer and business connections, which later return in the form of orders and new visitors (both bleisure and repeat travel).

Events as key drivers of tourism demand

The recently held Swedbank Tallinn Marathon, concerts featuring world-class performers, Tallinn Music Week, Viljandi Folk, PÖFF, WRC Delfi Rally Estonia, the Saaremaa Opera Days and of course the beloved Song and Dance Festival are all great examples of how tourism and export are born through collaboration.

Organizers of cultural and sporting events are known for producing high-quality experiences and, together with travel agencies, they bring visitors here. Hotels, restaurants and service providers ensure quality on the ground, while Visit Estonia — the national development and marketing organization — boosts visibility in target markets. The result is not only domestic attendance, but a much larger and more diverse influx of international visitors, especially when they stay longer. All of this translates into real export growth.

Tourists do not find themselves in Estonia at random

Marketing a tourism destination must have a clear and distinct focus. This means making data-driven choices (identifying which markets and target groups bring the most value), offering well-defined packages (transport connections, accommodations, events, programs) and issuing a clear call to action.

Marketing must go hand-in-hand with route and product development and must be consistent and measurable (overnight stays, average spending, length of stay). That's how visibility turns into real demand and export revenue. As global tourism competition is intense — with thousands of cities and hundreds of countries vying for travelers' attention, money and time on the same dates — messages must be precise, segment-based and sustained.

Consistent marketing and investments get results

Hotels, attractions and transport connections only pay off when demand is stable and growing. That's why capital investment must go hand-in-hand with efforts to grow demand. In addition, a competitive business environment is essential — this means clear and predictable tax rules and reduced bureaucracy so that investments flow into Estonia rather than to neighboring markets.

Tourism is also supported by investment: in 2023, tourism-related investments amounted to about 40 percent of all investments in the manufacturing sector and were significantly larger than those in information and communication services or construction. This shows that the sector is investing in its own capacity — putting money into hotels, attractions and connections.

All players in the tourism sector must strive to make Estonia memorable. A foreign tourist will not come here without the state's strategic involvement and consistent collaboration between the government and the tourism industry. It's a shared success, the impact of which goes beyond tourism and contributes to the growth of Estonia's economy as a whole. Trust in one another and a shared commitment to boosting the economy are essential.

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