Pärnu's hotels reported generally better summer than forecast
Hotels, spas and other accommodation businesses in Estonia's summer capital, Pärnu, say they have fared better during peak season than was initially feared, though even then in some cases revenues and visitor numbers have fallen.
Jaan Ratnik, head of Tervise Spa and Tervise Paradiis hotels, noted that the average occupancy rate this summer had been 80 percent, but overall the season was weaker than the previous year.
He said. "The number of nights visitors have spent is relatively comparable with last year's, though the average price dropped somewhat, more in some months and less in others, and this has affected revenues to some extent."
Another business, Viiking Spa, reported the average occupancy rate for the summer at closer to 90 percent, though this was still down on the previous year, as was revenue, the hotel said.
Accommodation prices in June and July this year were comparable to last summer's, but in August they saw a slight rise on 2023's levels.
"The positive surprise this year has been August. August is the first month where we can say that we've managed to maintain revenue," said Kairi Lusik, manager of Viiking Spa Hotel, told "Aktuaalne kaamera."
Ratnik said that this summer saw more visitors from Latvia, as well as from Estonia itself, and fewer Finns coming.
Lusik at the Viiking spa reported the reverse trend.
Another hotel, Wasa Spa, on the other hand, reported a better summer compared with last year – in fact the best summer ever. CEO Indrek Ilves said they had successfully targeted the market and set prices correctly.
"Results varied month to month, but we had five to ten percent more visitors overall. Our occupancy rate was just under 95 percent," Ilves said.
Parking fees were hiked in Pärnu this spring, but there impact has varied from hotel to hotel.
"It hasn't impacted us much." Wasa Spa CEO Ilves remarked.
Jaan Ratnik at the Tervise Spa said while certain costs have clearly been added, how much of a negative impact these have had is something which can only be evaluated over time.
On the other hand, Lusik said that since their business lies in Pärnu's most expensive parking zone, this is a big factor behind the falling tourist numbers.
Looking ahead to winter and the new year, accommodation businesses are approaching with caution given the VAT and tax hikes.
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Editor: Andrew Whyte, Marko Tooming
Source: 'Aktuaalne kaamera,' reporter Kristi Raidla.
