Tallinn surpasses Riga, Vilnius and Helsinki in tourism volume
A new analysis of the economic impact of inbound tourism in Tallinn shows that Estonia's capital has recovered strongly from the downturn of the pandemic years and is moving toward stable growth.
According to mobile positioning data, 3.42 million foreign visitors visited Tallinn in 2025.
The main conclusion of the analysis is that the growth of inbound tourism significantly increases the need for accommodation capacity in Tallinn. Forecasts show that by 2040 an additional 1,400–2,200 rooms will be needed to serve the expected volume of overnight stays. Currently, Tallinn has 9,801 hotel rooms.
Foreign visitors bring direct economic benefits to the city. Every additional 10,000 visitors brings an estimated €4.25 million in additional turnover to Tallinn's economy, creates about 48 new jobs and generates nearly €100,000 in additional labor taxes.
The average foreign visitor spent €245 per trip in Tallinn in 2024, while a multi-day tourist spent €336. More than 34,000 people were employed in tourism-related sectors, and companies paid a total of €293 million in labor taxes. The combined sales revenue of these companies reached €4.3 billion.
Tourism intensity — the number of overnight stays by foreign visitors per resident — is higher in Tallinn than in Stockholm, Riga, Vilnius or Helsinki. According to forecasts, Tallinn could see 3.26–4.21 million overnight stays by 2035 and 3.40–4.28 million by 2040.
The largest growth markets are Poland, Italy and the United States, while Finland remains the largest source country.
The analysis emphasizes that the development of accommodation capacity must go hand in hand with the growth of Tallinn Airport and the tourism market.
During the summer high season, hotel occupancy already reaches 86 percent, which limits the capacity to serve a growing number of visitors. Therefore, it is important to reduce tourism seasonality and strengthen Tallinn's attractiveness also during the low season, to ensure stable sales volumes for accommodation providers and other service providers throughout the year.
Revenue earned in Tallinn accounts for approximately 76 percent of the total spending of foreign visitors in Estonia, and Tallinn's estimated export of travel services reached €1.1 billion in 2024.
Deputy Mayor Kristjan Järvan (Isamaa) said tourism is a very important sector for the capital's economy, and the growing number of visitors clearly demonstrates the strong joint contribution of the City of Tallinn and the entire tourism sector.
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Editor: Helen Wright
