European accommodation establishments have unstable period

News
Posted on 27 September 2010, 11:00

According to Statistics Estonia, in 2008 tourists spent over 2.3 billion nights in nearly half million accommodation establishments of the European Union. At the same time, this decade has seen an increase in the terrorist attack risk and the economic crisis of recent years has had a significant influence on people's travel behaviour and on accommodation establishments.

In the second half the 1990s, according to Eurostat data, the number of tourists’ overnight stays in collective accommodation establishments of the European Union increased rapidly, reaching 2.1 billion in 2000. The recession took place after the New York terrorist attack on 11 September 2001, which had a negative impact on the whole EU tourism industry, including accommodation establishments. The number of overnight stays decreased rapidly and the level of 2000 recovered only four years later. The increase continued until 2007, when the deepening economic downturn started to affect people's travel behaviour.

The economic activity of Estonian collective accommodation establishments was also influenced by the 2001 terrorist attack. If since then the number of overnight stays in collective accommodation establishments had increased yearly by 10–18% during the last five years, then in 2001 the increase was only 2% compared to the previous year.

2003–2005 were the most successful years in Estonian accommodation market. In 2005 the number of overnight stays exceeded 4 million. The growth was supported by Estonia's accession to the European Union in 2004 and by becoming a member of the Schengen area in 2007. The simplified opportunity to visit Estonia was used by a large number of tourists from Europe and elsewhere, as a result of which the number of nights spent in collective accommodation establishments increased rapidly. Also Estonian tourists discovered the summer and winter recreational facilities of Estonia — if in 2002 the share of domestic tourists in accommodation overnight stays accounted for a quarter, then in 2007 the respective share was already 38%.

Foreign and domestic tourists reacted quickly to the economic recession. The number of overnight stays in Estonian accommodation establishments decreased rapidly since 2008; and in 2009 reached the level of 2005. Only in the first half of 2010 the growth in the number of both foreign and internal tourists was reported.

Overnight stays in tourist accommodation in the EU Member States (EU-27), 1996–2008

Diagram: Overnight stays in tourist accommodation in the EU Member States (EU-27), 1996–2008