Tallinn Airport opens check-in terminal at the Radisson Blu Hotel

It is now possible to check in online and print boarding cards directly from the lobby in Radisson Blu Hotel in Tallinn.

The Self Service Kiosk is easy to use and provides travelers with step by step instructions.

The system allows to check in 24 hours before departure and choose own specific seat.

Read more from BBN

0.96 pct of GDP is spent on different payment instruments

Eesti Pank participated in the ECB’s study carried out to assess and analyse the social cost1 of various payment instruments. The study showed that in Estonia, 0.96% of GDP is spent on different payment instruments. In the European Union, the respective indicator was around 1% (about 130 billion euros).

According to the study, half of the social costs of different payment instruments are incurred by commercial banks and the other half is incurred by retailers. The share of central banks and cash–in-transit companies was very modest (3% and 1%, respectively).

As a result of the relatively widespread usage of cash, the aggregated social costs of cash payments make up nearly half of the total social costs. In Estonia, the share of cash costs was beyond the average: the aggregated social costs of cash payments accounted for 62%.

The estimated unit social cost of cash payment was the lowest, 0.42 euros, whereas the unit social cost of a card payment was 0.7 euros. Estonia belonged to the cluster of countries, where card payments had a larger share and the unit social cost of a card payment was lower than that of a cash payment (0.22 euros and 0.32 euros, respectively).

The ECB’s study provides an integral overview of the usage of different payment instruments in Estonia, since it also looked at the usage of cash. The payment statistics collected by Eesti Pank reflect mainly non-cash payment instruments. According to the study, cash payments made up about a half, card payments a third and payment orders a fifth of all payments. Based on Eesti Pank’s payment statistics, card payments accounted for 63%, payment orders 31% and direct debit 6% of all non-cash payments made in the first three quarters of 2012.

1Social costs are the costs related to the provision of payment services in the different parts of the payment chain, such as central banks, commercial banks, cash-in-transit companies, the infrastructure, and retailers. Costs incurred by individuals are not included here.

The objective of the ECB’s study of costs related to payment instruments was to clarify the cost-effectiveness of different payment instruments in order to promote a more efficient payment environment. The study also provides an overview of the difference of the costs related to the most popular payment instruments across countries.

The study included the measurement of the costs of using cash, debit and credit cards, direct debit and payment orders in the different parts of the payment chain. For Estonia, data from the year 2010 were used.

13 national central banks in the ESCB participated in the study: Danmarks Nationalbank, Eesti Pank, Central Bank of Ireland, Bank of Greece, Banco de España, Banca d´Italia, Latvijas Banka, Magyar Nemzeti Bank, De Nederlandsche Bank, Banco de Portugal, Banca Naţională a României, Suomen Pankki, and Sveriges Riksbank.

The study is available on the ECB’s web site

Source: Bank of Estonia

Estonian internal migration for 2011

According to Statistics Estonia, in 2011, 36,137 persons changed their place of residence which is 2,407 people less than the data published in May showed. Due to the revision of internal migration data the population figure of several local governments changed.

Migration statistics are based on the data from the Population Register. “The Population Register updated its information system as a result of which there was a technical failure in the transmission of the internal migration data to Statistics Estonia and many of the internal migration events doubled,” explained the reason for revision a Leading Statistician Helerin Rannala. “Now the necessary revisions have been made and internal migration has been corrected,” she added.“When due to the incorrect data the biggest loss in population was in Tartu and Pärnu cities, then after the revision we can say that Tartu and Kohtla-Järve cities lost the biggest number of population because of internal migration (471 and 294 persons, respectively),” said Ms Rannala. “Tallinn is still the city that won most of the population (2,299 persons),” she explained.The biggest numeric changes due to revision occurred in Tallinn, Pärnu and Viljandi cities and in Harku, Kiili, Paikuse, Sauga, Kohila, Tartu and Pärsti rural municipalities.

Estonia’s internal migration, 2011
Municipalities Immigration Emigration Net migration
Preli-
minary
Re-
vised
Prel. Rev. Prel. Rev.
Harku rural 1 507 954 595 591 912 363
Tartu rural 638 357 88 215 550 142
Kiili rural 546 256 179 184 367 72
Pärsti rural 386 123 204 169 182 -46
Paikuse rural 392 163 134 116 258 47
Kohila rural 388 242 251 236 137 6
Sauga rural 391 262 174 168 217 94
Viljandi city 583 585 713 505 -130 80
Pärnu city 1 075 1 086 1 480 1 264 -405 -178
Tallinn 9 723 9 592 8 293 7 293 1 430 2 299

Internal migration is a change of the place of residence where a person changes the place of residence within Estonia, crossing the county’s, city’s or rural municipality’s borders.

Source: Statistics Estonia

Main increase in the manufacturing of electronic products

According to Statistics Estonia, in September 2012, the production of industrial enterprises increased by 8% compared to September of the previous year. The growth in the production was most of all influenced by the increase in the manufacturing of electronic products.

A stable small decline compared to the same month of the previous year in which the manufacturing stayed during a half of the year, was replaced with the significant growth in September. In September the increase in manufacturing was 9% compared to September 2011. The main reason for the growth in production was the low reference base in the manufacture of electronic products. A year ago, in September 2011, the growth in the manufacturing of electronic products slowed down sharply, which affected the whole industrial production output. Now, the production volume in this branch has recovered, covering a fifth of the total manufacturing output. In other branches of industry no significant changes occurred in September.

In September, the production exceeded the volume of the same month of the previous year in half of the branches of industry. Among the branches of industry holding larger shares, the production rose in the manufacture of electronic and refined petroleum products by 69% and 60%, respectively. The production fell in the manufacture of wood, food and metal products and electrical equipment.

In September 2012 compared to August, the seasonally adjusted total industrial production as well as the production in manufacturing increased by 2%.

Compared to September 2011, the production of electricity increased by 5% and the production of heat by 10%.

The volume index and trend of production in manufacturing, January 2003 – September 2012 (2005 = 100)

Diagramm: The volume index and trend of production in manufacturing

Read more from Statistics Estonia

China gives Estonian company a five-year tax break

Guardtime, Estonian developer of timestamp, has received a five-year tax exemption from the Chinese government, writes Äripäev.

Mike Gault, CEO of Guardtime, said that the company also received a Shanglin award from the Chinese government which includes 247,000 euros and is awarded annually to new companies and technologies that promote China’s economic development.

This year Guardtime which has a R&D centre in Tallinn has invested about two million euros in Estonia.

Read more from BBN

Estonian Air ejects CEO Tero Taskila

The national air carrier is sacking its CEO, Tero Taskila, over deteriorating economic results, as the supervisory board steps down.

Supervisory board chairman Erkki Raasuke said the current management’s strategy took risks that significantly hurt the company’s financial results.

The carrier today reported a 20.2-million-euro loss in the first nine months of the year – nearly doubling its 11.2-million-euro loss during the same period of last year.

The CEO, who previously worked for Air Baltic, had a monthly salary of over 30,000 euros last year – a subject of criticism for the Estonian public.

Read more from Estonian Public Broadcasting

Lufthansa to cancel Munich route

German airline Lufthansa announced yesterday that it will discontinue its Tallinn-Munich line from April 2013.

The company said however that it would add additional flights to Frankfurt starting from spring.

Irish low-cost airline Ryanair has also cut its winter routes this year, cancelling routes to Barcelona, Bremen, Dublin, Düsseldorf and Stockholm.

Estonian Air said two weeks ago that it will cancel its Tallinn-Paris route next year and suspend flights to Vienna. It also suspended its Tallinn-Tartu service.

Read more from BBN

The sales increased in all economic activities

According to Statistics Estonia, in September 2012 compared to September of the previous year, the retail sales of goods of retail trade enterprises increased 7% at constant prices. Since March this year, the retail sales growth remained within 6 to 9% compared to the same month of the previous year.

In September 2012, the retail sales of goods of retail trade enterprises were 364.9 million euros. The retail sales in stores selling manufactured goods increased 12% compared to September 2011. The sales increased in all economic activities. The retail sales of second-hand goods in stores increased the most (23% growth), but mainly due to a very low reference base of the previous year. The sales increase in these stores does not significantly influence the retail sales of goods of retail trade enterprises, because the share of this economic activity is very small – 1% in September 2012. A higher than average increase occurred in September in retail sales via mail order or the Internet (17% growth), in the retail sales of pharmaceutical goods and cosmetics (16% growth), in the sales of other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc. (15% growth), stores selling textiles, clothing and footwear (14% growth) and in retail sales of non-specialized stores selling predominantly industrial goods (13% growth). Compared with previous months the retail sales in stores selling household goods and appliances, hardware and building materials turned from the decrease to increase, showing a 3% increase compared to the same month of the previous year.

The retail sales in grocery stores increased 4% compared to September of the previous year, but compared with previous months the growth in retail sales slightly decelerated, mainly due to a high reference base of September 2011.

Compared to the previous month, in September the retail sales in retail trade enterprises decreased 7% at constant prices. According to the seasonally and working-day adjusted data, the retail sales increased one percent compared to the previous month. During the nine months of 2012 (January–September), the retail sales in retail trade enterprises increased 8% at constant prices compared to the corresponding period of the previous year.

In September the revenues from sales of retail trade enterprises were 461.9 million euros, out of which the retail sales of goods accounted for about 80%. Compared to September 2011, the revenues from sales increased by 13% at current prices. Compared to the previous month, this indicator decreased by 5%.

Retail sales volume index of retail trade enterprises and its trend, January 2002 – September 2012 (2005 = 100)

Retail sales volume index of retail trade enterprises and its trend

Source: Statistics Estonia

Why Finns earn four times more than Estonians?

Estonian economist Andres Arrak writes in an opinion article in Delfi that Estonians like to compare themselves with other European nations and to measure their economic success or failure.

For instance, a comparison of GDP per capita shows that Europe’s richest country in 2011 was Luxembourg with USD 81,100, while Finland’s figure was USD 36,700 and Estonia’s was USD 20,600 per person. Estonians are finding only a small consolation in the fact that Lithuania’s figure was USD 19,100 and Latvia’s one was even smaller, at USD 15,900.

Does it mean that the living standard of Estonians is four times lower than that in Luxembourg and twice lower than in Finland?
Of course not – anyone who travels knows that living standards in Baltic states, Finland and Luxembourg are not so vastly different.

The fact is that most of the added value for the society is generated not by teachers or nurses, but by manufacturing industry whose taxes pay for the public servants.

The difference is that while a tree is cut down in Norway, it undergoes a long added-value chain and finally becomes highly valuable plywood that is used to produce expensive furniture. When a tree is felled in Estonia, it is often exported as roundwood, without adding any value to it and, therefore, at a very cheap price.

It’s all about the productivity of a workhour. When a Norwegian works one hour, he or she creates EUR 68.7 worth of value.  The figure is EUR 40 in Finland and EUR 10.8 in Estonia.
And this is the answer.

Read more from BBN

Health care workers end 25-day strike

The health care workers’ unions have said they will end their strike on Friday, October 26, after signing a memorandum of understanding on the most important conditions of a new collective agreement with the Hospitals Association, reported ERR.

Beginning next year, resident physicians will get paid for the full 40 hours per week, rather than the current 32 hours. Doctors and nurses’ workloads will be reduced in outpatient care by 20 percent and inpatient care by 16 percent. In March 2013, minimum wages will rise by 23 percent for caregivers, 17.5 percent for nurses and 11 percent for doctors (to 2.6 euros, 4.5 euros, and 8 euros per hour, respectively).

Read more from BBN