Covid-19, Estonia, Markets and Companies, Tourism

Estonia's gross domestic product (GDP) fell by 6.9% in the second quarter of 2020, compared to the second quarter of 2019, while GDP at current prices was 6.4 bn euros, according to Statistics Estonia. The downturn was led by the hospitality sector, which saw a decline of 58%.

"There isn't much to say about the second quarter. What poses problems is that while many other sectors are already exhibiting signs of recovery, the ongoing third quarter is still generating large losses for us despite it being high season in tourism," the association's board chairman Ain Kapp said. He added that while the sector's entrepreneurs are looking for options to survive, there are limits to what they can accomplish on their own. 

"Extending the Unemployment Insurance Fund's measure would be the remedy that could help tourism entrepreneurs survive the forthcoming low season until spring 2021. No one is suggesting that losses borne thus far be covered, they have already been absorbed by investors," Kapp said.

The chairman of the Hotel and Restaurant Association said that he does not agree with the opinion of some experts that no exceptions should be made. 

"If the functioning of a specific exporting sector has been stopped with regulatory measures, other regulatory measures can be used to save it from completely coming to a halt," he noted.

Professional associations of the Estonian tourism industry sent a letter to the government last week asking them to restore the wage support scheme of the Unemployment Insurance Fund for companies operating in the field of tourism at the latest from October this year until the spring of 2021. In their statement, the Estonian Hotel and Restaurant Association, Estonian Travel and Tourism Association (ETFL), Estonian Rural Tourism and Estonian Spa Association pointed out that the support measure would help to prevent the redundancies of around 15,000 people.