Estonian investments in crisis countries have increased

Estonian investments into euro zone debt crisis countries – Portugal, Italy, Ireland, Greece and Spain, the “PIIGS countries” – amounted to 1.3 billion euros as of the end of March; compared with the period immediately before the debt crisis, investments to the above countries have grown 58%.

In the same period, growth in all Estonian foreign investments was 33%. Investment into the PIIGS countries account for nearly 8% of all Estonia’s foreign investments, the daily Postimees reported.

Investments into all the PIIGS countries except Greece have increased. As of the end of March 265 million euros was invested into Spain, 259 million into Ireland, 663 million into Italy, 28 million into Greece and 39 million into Portugal. Postimees has added up direct investments, portfolio investments and other investments.

Karel Lember, chief economic analysis specialist at the Ministry for Economic Affairs, said that for more risk-conscious investors the debt crisis countries could offer good opportunities for entry, if they are able to reasonably assess their risks.

Postimees also points out that Germany, for example, is encouraging its companies to invest in Greece.

Source: Estonian Review

New record in Tallinn hotels

Sokos Hotel Viru hosted 33 102 clients in July, marking an absolute record in Tallinn accommodation, and hotel was filled 97,3% on the whole in July, while the average of hotels in Tallinn was 89,5%.

Sokos Hotel Viru is the biggest hotel in Estonia, accommodating as much as 1000 person at one time. Next year the hotel will celebrate its 40th birthday with three buildings of the same chain in Russia and 47 in Finland.

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Norwegian investors satisfied in Estonia

Norwegian businessmen operating in Estonia say they are satisfied with the work of local business managers and Estonia as a production base that provided a competitive edge in terms of costs during the financial crisis, Äripäev wrote this week.

“Considering that by their profile, Norwegian companies are mainly manufacturers, Baltic operations proved very important for them during the crisis. Some companies were virtually rescued by being able to transfer production into the Baltic countries,” says Tiina Link who oversees Baltic operations for Innovations Norway, the commercial representation at the Norwegian Embassy.

“During the crisis several Norwegian companies increased production in Estonia,” she said, adding: “Changing production in Scandinavia is not so flexible, mainly because of trade unions. In Estonia and elsewhere in the Baltic countries, the wage level came down along with the financial crisis. Because of trade union resistance, a similar change in Scandinavia would have been very difficult to make if not impossible.”

There are 300 companies in Estonia that are fully or partly owned by Norwegian capital.  Norway is Estonia’s fifth largest foreign investors behind Sweden, Finland, Holland and Russia.

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St. Petersburg-Stockholm ship to stop in Tallinn

The ship of the carrier St Peter Line sailing between the Russian city of St. Petersburg and the Swedish capital Stockholm will as of 12 September make stops in Tallinn when headed in both directions. Previously the Princess Anastasia called in Tallinn only when headed from Stockholm to St. Petersburg. Passengers of the ship who are citizens of the EU can spend a whole day in St. Petersburg without a visa.

The CEO of the Estonian state owned company Port of Tallinn, Ain Kaljurand, said the ship link was made attractive among other things by the fact that thanks to the possibility of a 72-hour visa-free stay in St. Petersburg, Estonian travel companies now can expand their product lineup for foreign travellers arriving in Estonia.

“In the future, travel companies will be able to offer tourists the opportunity to visit St. Petersburg in addition to visiting Estonia,” Kaljurand said.

St Peter Line operates ferries to Stockholm and Helsinki from the Russian city of St. Petersburg and its fleet is made up of the ferries Princess Maria and Princess Anastasia.

Source: Estonian Review

Estonia’s economic situation continues to improve

According to Estonian Institute for Economic Research Estonia’s general economic situation continues to improve.  Outlook for the coming six months remains positive. Economic climate index rose to 7,3 points in June.

Source: Estonian Institute for Economic Research