Tourism in Transition in Post-Soviet Estonia

Abstract

The newly-independent states which emerged after the collapse of the Soviet Union are now in a transition from a centrally-planned economy to a market economy. This paper presents a case study of Estonia. The earlier tourism model is reviewed as a historical background to the contemporary situation. During the Soviet period, there was substantial state investment in tourism in the capital city. Foreign tourism was highly dependent on a single market, Finland, and this dependency continues today. The transition to a market economy is made up of democratization, decollectivization of agriculture, privatization of state enterprises, and land and property reform. This paper discusses tourism flows, assesses Estonia's tourism market, and proposes development strategies.