Riga's Tourism Marketing Budget Dwarfs Tallinn's

Riga's tourism agency is putting €2 million more into marketing and advertising this year than it did in 2023. Its total budget now exceeds €6 million, with more than half earmarked for promotion. According to Tallinn's Strategy Center, the Estonian capital plans to allocate around €500,000 for tourism marketing this year, pending city council approval of the overall budget. That amount has remained unchanged for several years. Helena Tšistova-Pohlak, head of tourism at the strategy center, noted that competition in nearby markets is tight. "Riga has always been a strong competitor for us when it comes to nearby markets. Thanks to airBaltic, Riga already has an advantage and with a solid marketing budget behind it, they'll no doubt be able to grow their visibility even more," Tšistova-Pohlak said. Since Tallinn sees no shortage of visitors in summer, its limited marketing resources are focused on the off-season — from October to April. The goal is to attract culture and food tourists and this winter, the city is running themed campaigns to stand out. For example, it launched Tallinn Bun Fest to give travelers who love cream buns (vastlakuklid) a reason to visit. "We thought this could be a way to market the low season in nearby markets. This year, we're trying to attract Finns, Swedes, Latvians and Lithuanians to visit Tallinn early in the year," said the tourism official. While the Baltic states compete within Europe, they cooperate on long-haul markets. Orvika Reilend, head of the tourism focus area at the Estonian Business and Innovation Agency, explained that for distant markets, the Baltics are seen as a single destination. "We're competitors in the sense that none of the three countries are go-to summer destinations. We also compete with other global destinations. But we're partners, too, because long-haul travelers usually visit all three Baltic countries at once," Reilend said. The biggest challenge, however, is coming from the north. Finland remains Estonia's top tourism partner, accounting for nearly 40 percent of all foreign tourists, but Finnish visitor numbers have been declining for several months. According to Reilend, price isn't the only issue — economic uncertainty is also making Finnish consumers more cautious. "Finnish consumer confidence is low. They're traveling less overall and when they do come to Estonia, they're choosing cheaper options. Many didn't stay overnight or they opted for more affordable accommodations," she explained. Tšistova-Pohlak added that while Finnish visitors make up a large share, this shift is also an opportunity to diversify. "As the number of foreign visitors grows, we may have a chance to move some of those eggs into different baskets," she said. At the national level, Visit Estonia plans to invest nearly €9 million in tourism marketing this year, targeting 15 foreign markets. All of that spending will go toward outbound campaigns to bring in visitors who are expected to contribute an estimated €1.6 billion to the local economy annually. Finland and Latvia remain Estonia's biggest tourism markets, followed by Germany and the United Kingdom. --