In September, Estonian accommodation establishments were visited by 157,000 foreign tourists and 131,000 domestic tourists. Foreign visitors slightly outnumbered domestic ones, making up 55 percent of all guests staying at accommodations that month.

According to Helga Laurmaa, a lead analyst at Statistics Estonia, the number of foreign tourists has increased in most months this year.

"However, the number of foreign visitors still remains below pre-pandemic levels," Laurmaa noted.

She added that the number of domestic tourists also grew for the first time in over three months. "Compared to September of last year, there were 5 percent more domestic tourists and their numbers exceeded September 2019's pre-pandemic level by nearly a quarter," Laurmaa said.

A total of 43,000 tourists arrived from Finland in September, accounting for 27 percent of all foreign visitors staying in Estonian accommodations.

"Although Finnish tourists remained the largest group, their number fell for the fifth consecutive month compared to the previous year — by 5 percent in September," Laurmaa commented.

Nearly 19,000 tourists (12 percent) came from Latvia and close to 15,000 (9 percent) from Germany. Year over year, tourist numbers from Latvia and Germany increased by 7 percent and 9 percent, respectively.

Harju County still has the most foreign and domestic tourists

Of the foreign tourists accommodated in Estonia in September, 75 percent were on vacation and 19 percent were traveling for work.

Among foreign visitors, 74 percent chose to stay in Harju County, followed by Pärnu County (10 percent), Tartu County (7 percent) and Saare County (3 percent). Another 2 percent stayed in Ida-Viru County.

Of the 131,000 domestic tourists who stayed in accommodations, 70 percent were on vacation and 22 percent were traveling for business. The largest share stayed in Harju County (34 percent), followed by Pärnu County (12 percent), Ida-Viru and Tartu counties (10 percent each) and Saare County (9 percent).

Accommodation prices did not grow on year

In September, tourists could choose from 1,061 accommodation establishments, with 45 percent of rooms occupied.

The average cost of an overnight stay was €50 per person, the same as in September 2024.

In Harju County, the average nightly rate per person was €56, followed by €46 in Tartu County, €45 in Ida-Viru, Saare and Võru counties and €42 in Pärnu County.

Hotel and Restaurant Association: Things are not good

Commenting on the September figures, the Estonian Hotel and Restaurant Association (EHRL) said the autumn months have been challenging for hotels and restaurants. The increase in tourist numbers remains too modest to keep pace with rising costs while still maintaining profitability.

"The average hotel room rate in September and October was lower than during the same period last year. The VAT increase on accommodation services that took effect at the start of 2025 is having an impact, as businesses have not been able to pass the added cost on to consumers and must absorb it themselves," the association noted.

The restaurant sector has been particularly hard-hit by the new general VAT rate of 24 percent applied to food service providers, EHRL added.

"As expected for the low season, the market cooled in autumn. There are fewer foreign guests, domestic tourists are more price-sensitive and the economic situation is forcing businesses to cut costs," said EHRL CEO Külli Kraner.

"While hotel occupancy was slightly higher, rooms were sold at a lower average price and rising expenses are eating up an increasing share of profits. The drop in occupancy was especially noticeable in the first two months of autumn outside of Tallinn, where, surprisingly, September turned out to be significantly worse than usual," she added.

Overall, hotels earned 6 percent less per available room in September and October compared with the same period in 2024.

"As a result, while hotels continue to operate, they're left with little to no profit. There have also been reports of closures," Kraner said. "This isn't just about a few difficult months — it's a deepening trend. The sector has limited buffers, costs remain high and consumer confidence hasn't recovered. This is also reflected in declining visits to spas and restaurants."

"When it comes to VAT on food services, we now rank second-highest in the European Union. That means a customer pays 24 percent VAT when leaving a restaurant here, compared to 14 percent in Finland, 9 percent in the Netherlands and soon just 7 percent in Germany. That's where our restaurants' long-term competitiveness disappears: while businesses in other countries can invest in new flavors, service quality and staff development thanks to a lower tax burden, Estonian restaurants are forced to focus on survival and cutting costs," Kraner said.

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