Travel by car on Helsinki-Tallinn route is increasing after Estonia joins EU

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At the beginning of May last year Estonia joined the EU, and thereafter a massive surge in passenger numbers has been experienced on the Helsinki-Tallinn route.
      Car ferry operator Tallink reports an increase of 50% in the number of cars, and a growth of 30% in the amount of cargo since May last year. Nordic Jet Line carried 66% more cars in 2004 than in the previous year. Prior to Estonia's EU membership, an average of 2,200 cars a month were carried over aboard Viking Line's Rosella, whereas since May 2004 the figure has been as high as 4,600 cars a month.
     
The number of crossings over the Gulf of Finland was about 6 million in 2004, after a slight dip in 2003, and the trend turned upwards again. The growth was emphasized in the months immediately after the enlargenment of the EU, and the pace has been the same even this year.
      However, the shipping companies believe that the current growth will not continue, but the situation will gradually even out.
      The number of passengers onboard Nordic Jet Line's ferries increased by over 40% last year, whereas the market leader Tallink reported an increase of only 15%. The number of Tallink crossings was 2.4 million.
      Rosella carried approximately 79,000 passengers a month after Estonia's EU entry, whereas the average monthly figure in the previous season was only 47,000.
     
Some 60 to 85% of all passengers are Finns. The share of Estonians is growing but varies considerably according to shipping lines. Even in the EU period, the Helsinki-Tallinn route is built on Finnish customers, but according to the shipping lines, the Finns' travelling habits have shown a distinct change after the first of May of last year.
      Estonia has become a safe tourist attraction where a whole family can go on a culture or shopping trip. For example, Tallink has recorded over 25% more child passengers compared with earlier years.
      More Finns also travel beyond Tallinn. This partly explains the increase in the travel by car.
     
According to Viking Line, half of the Finnish passengers are tourists. The other half includes business travellers, commuters, and cruise visitors.
      Linda Line reports that while the share of business travellers and commuters is growing, it will hardly ever outnumber the share of tourists.
      The opening of the labour market is expected to increase the number of commuter and business trips. The shipping lines hope to get a significant and stable group of regular customers of the Estonian weekend commuters who work in Finland and travel home for the weekend.
     
The "booze rally" never really materialized. According to the shipping lines, those Finns who go to Estonia for massive amounts of cheap alcoholic beverages form "a very marginal phenomenon". While it is true that Finns buy cheap alcohol, the impact of Estonian EU membership on alcohol-related tourism was exaggerated.
      The worst crises since Estonia joined the EU have also been alcohol-related. The Finnish tax on alcoholic beverages was lowered, and the tax-free sales on passenger ferries was abolished. On board sales of alcohol, tobacco and other goods continue on board, but the shops Estonian taxes.
      As a result, the sales profits of the ferries dropped by half or even more, and currently, the shipping lines are trying to figure out how they could compensate for the losses.
     
The growth in the number of passengers has partly offset the deficit. In order to persuade the customers to spend their euros onboard the vessels, instead of carrying them to Estonia's malls and markets, the ticket prices have been increased, the shops and services onboard have been expanded, and restaurant services and entertainment have been improved.


Previously in HS International Edition:
  EU membership brings surge of bookings for travel to Estonia (1.4.2004)
  High-speed catamaran service to Tallinn to pick up later this week (12.4.2005)
  Passengers fill vessels to Estonia (24.3.2005)
  Estonia's six months in EU have brought no massive changes for Finland (2.11.2004)

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