Drop in local purchasing power worrying Pärnu businesses

Accommodation providers and restaurants in Estonia's summer capital Pärnu are ready to face the season. But while Finnish tourist numbers seem to be bouncing back, weak local purchasing power is worrying entrepreneurs.
Pärnu accommodation providers said that customers increasingly leave decisions to the last moment, which is why it is quite difficult to tell how the summer will turn out. But there are some advance bookings, hotels have hired the necessary staff and are largely ready for the summer season.
Both restaurants and hotels said that finding seasonal labor has proved somewhat easier this year.
"We have hired extra people and are looking for a few more. It's never too easy to find summer employees in Pärnu, while we've done well this year and are more or less fully staffed for the season," said Indrek Ilves, executive manager of the Wasa Resort spa hotel.
Chef Siiri Aasma at Pastoraat Cafe said that their team doubles or even triples for the summer. "It has been easier to find workers this year compared to previous ones," she noted.
Accommodation providers are glad to see more Finnish tourists again.
"Looking ahead, it seems that the Finns are finding their way to us and Pärnu again. We have quite a few Finnish reservations," Ilves said.
Kairi Lusik, executive manager of the Viiking Spa Hotel, also said that the Finnish market seems to be bouncing back. "April and May were very nice compared to last year," she remarked.
But Pärnu companies also say that inflation has impacted the number and habits of local customers.
"Because we are not a four or five-star hotel, we aim our services at the middle class, and as we all know, it's the middle class that has taken the biggest hit in Estonia – soaring Euribor rates, price hikes etc. Purchasing power has dropped considerably. People still find the money for an overnight stay and a trip to the spa, while additional services are kept to a minimum and customers have food couriers bring orders to the hotel," Lusik said.
"Because raw material prices have all gone up, next to VAT, it all reflects in the prices of menu items. People are less likely to order two or three course meals," Siiri Aasma said.
Accommodation providers added that Pärnu's new and higher parking fees also affect customers' decisions.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Merili Nael, Marcus Turovski