Estonia drafts three-year rural tourism grants with a digital booking push

The Ministry of Economic Affairs has drafted a regulation that would give grants to destination management organisations, mainly outside Tallinn, so tourism plays a larger part in rural economies. Recipients would develop rural tourism with local governments, businesses and other partners.

Examples named in the draft include the Tartu County Tourism Foundation and The Onion Route (Sibulatee) in southern Estonia, the Tõstamaa Manor Foundation and the nonprofit Soomaa Tourism in Pärnu County, and, on the islands, the Hiiumaa Development Center plus the municipal governments of Saaremaa, Ruhnu and Muhu.

Kristina Jerjomina, head of tourism at the ministry, told ERR that the regulation planned for 2027–2029 is meant to make regional tourism funding more stable and long-term. Grants have so far covered shorter periods; under the proposal they would run for three years. Required co-financing would rise from 50 percent to 55 percent by the third year, to reduce reliance on government money.

Jerjomina said the scheme would put more weight on cutting seasonality, encouraging travel beyond major centres outside the peak summer, measuring tourism’s effect on regional economies and securing positive visitor experiences. Grant use and reporting would be simplified, eligible expenses widened, and total annual funding raised by about €200,000.

The tourism action plan sets a target that at least 53 percent of overnight stays should be outside Tallinn by 2029, and that stays in spring, autumn and winter should reach 65 percent that year. Grants would support cultural, heritage, culinary and other offers aimed at international visitors, with an emphasis on quality and availability in the low season so tourism revenue can grow.

The plans also call for continued digitalisation and automation, including more services that can be booked online. Grant recipients would have to keep their region’s tourism services and destinations accurately listed in the visitestonia.com database.

The explanatory memorandum says a major bottleneck is getting visitors from a bus or train station to a forest trail, manor or museum, and finding parking information that is easy to understand. Organisations would not be expected to buy buses or run routes. They would have to discuss improvements with regional public transport centres, local governments, technology companies and tourism businesses, identify attractions that most need better access, analyse how visitors travel and decide which solutions could be tested.

The grants would total €1.97 million a year. Allocations would reflect how far a destination is from Tallinn and how well it is linked to other areas. The memorandum says access to services, jobs and infrastructure is strongest in Tallinn and neighbouring counties, while more remote regions need extra support to keep residents and services. It states that a regional impact indicator can steer more funding to places where tourism can do the most for regional balance, business activity and jobs outside Tallinn and Harju County.

The regulation is still a draft. The ministry is taking feedback until 26 October, and the final wording will be set after that consultation.