Economics, Estonia, Tourism

"According to data published by Statistics Estonia, last year the number of domestic tourists staying in Estonia's accommodation establishments grew 7% compared to 2014, but when the accommodation establishments' VAT increase was discussed last year it was hoped that additional money would come from foreign tourists," secretary general of the association Mariann Lugus said. "Today domestic tourism has increased but no additional money enters the country because 3% less foreign tourists stayed overnight in Estonia's accommodation establishments," she added.

According to Lugus the possible consequences of the tax rise have to be analyzed more thoroughly and until then the state should encourage major travel agents to direct tourists to Estonia since now is the time to make big deals. She added that the continued decline in foreign tourist numbers has a negative impact also on the whole service sector.