Beginning of tourism season didn’t bring expected relief to hotels
10.06.2009, 15:09 Feliks Mägus, the CEO of Estonian Hotel and
Restaurant Association said that the beginning of tourism season didn’t bring
expected relief to accommodation establishments and many entrepreneurs face big
difficulties, E24.ee reports.
Accommodation sector is affected by Estonians’ lower purchase power and
economic situation in the neighbouring countries. The prices and numbers of
accommodation have decreased.
Although people from neighbouring countries have started to visit Estonia, it
hasn’t covered general fall.
Pressure on the prices is big and also affected by higher VAT, which was
applied in the beginning of the year. As a result, the price per night has
decreased by 11 pct. Room occupancy rate was 35 pct.
Two weeks ago accommodation establishments’ tax arrear was EEK 89 mln, 20 pct
of companies had payment difficulties.
“If high season doesn’t bring expected incomes, then many face serious
liquidity problems in the autumn and winter,” Mägus said.