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TALLINN FACTS & FIGURES 09 REPUBLIC OF 3 TALLINN 4 POPULATION 7 LABOUR MARKET 10 ECONOMY 12 BUSINESS ACTIVITIES 18 TOURISM 22 FOREIGN TRADE 25 HOUSING AND REAL ESTATE 27 TRANSPORT 29 COMMUNICATIONS 31 HEALTH CARE AND SOCIAL CARE 35 EDUCATION 36 CULTURE 38 ENVIRONMENT 40 TALLINN’S BUDGET 41

Published by: Tallinn City Enterprise Board (www.investor.tallinn.ee) Design: Ecwador Advertising Photos: Toomas Volmer, Triin Abel, Karel Koplimets, Toomas Tuul, Meelis Lokk, Maido Juss, Arno Mikkor, Kärt Kübarsepp, Kaido Haagen, Harri Rospu, Andreas Meichsner, Meeli Tulik, Resort, Arco Vara, , IB Genetics OÜ, Print: Folger Art TALLINN - HOME FOR BUSINESS 03

REPUBLIC OF ESTONIA

Area 45 227 km2 Climate Average temperature in July +16.7° C (2008) Average temperature in February -4° C (2009) Population 1,340,341 (1 January 2009) GMT +2 in winter GMT +3 in summer Language Estonian Currency Estonian kroon (EEK) 1 EEK = 100 cents 1 EUR = 15.6466 EEK

As of May 1, 2004, Estonia is a member state. As of March 29, 2004, Estonia is a full member of NATO. As of December 21, 2007, Estonia belongs to the Schengen Area. 04

TALLINN

Tallinn, the capital of Estonia, is located in Northern in the northeast part of the Region, on the of the Gulf of . A favourable geographic location has helped Tallinn develop into a port city, as well as an industrial and commercial centre. Tallinn, a well-known Hanseatic town, received its township rights in 1248.

LOCATION IN THE WORLD

Latitude 59o 26’ North and longitude 24o 46’ East

GEOGRAPHIC INDICATORS

Area 159.2 km2 Islands (1): 3.04 km2 Lakes (2): Harku 1.7 km2, Ülemiste 9.4 km2 Sea coast 46 km Land border 59 km

The highest point in Nõmme is 63.6 m above sea level.

Population 404,556 (1 April 2009)

Population density 2,541 in/km2

LAND OWNERSHIP

The National Land Registry has registered 10,913.8 hectares of land, which is 69% of Tallinn’s territory. Unreformed state-owned land made up 31% of Tallinn’s territory.

According to the Land Registry, 3,284.6 hectares of the registered land is municipal land, which is 20.8% of Tallinn’s territory. Of the registered land, 2,050.5 hectares is state-owned land, which is 13% of Tallinn’s territory, while 5,578.7 hectares is private property, which is 35.2% of Tallinn’s territory.

Tallinn has 40 km2 of parks, forests, etc. 05

As of 2009, Tallinn is a member of the following international organizations Baltic Metropolises Cooperation network of the metropolises in the Baltic Sea Region

Hanseatic League

EC/ Union of Eurocities

UBC Union of Baltic Cities

ARC Airport Regions Conference

ECAD European Cities Against Drugs

OWHC Organization of World Heritage Cities

ECM European Cities Marketing

EUREGIO Cooperation project of and Tallinn

INTA International Network for Urban Development

ASCE Association of Significant Cemeteries in Europe

UCEU The Union of Capitals of the European Union

LUCI The Lighting Urban Community International

POLIS European Cities and Regions Networking for New Transport Solutions

Tallinn has permanent associations with 26 cities in the world

Annapolis (USA) Newcastle/Gateshead () () (Ukraine) (United Kingdom) Peking (China) () () Gent () (Germany) (The ) (Macedonia) (China) () Helsinki (Finland) St. Petersburg () (Germany) Toronto (Canada) Kiev (Ukraine) (Finland) (Finland) (Italy) Malmö (Sweden) () (Russia) () 06

Distances and flight times to larger cities,2009 City Distance from Tallinn (by plane, km) Flight duration (h)

Helsinki 82 0.5 Riga 280 1.0 Stockholm 380 1.0 Vilnius 530 1.5 800 1.5 860 1.5 Moscow 860 1.75 Kiev 1,075 2.0 1,200 2.0 1,400 2.0 1,600 2.5 1,750 2.75

Source: Tallinn Airport

Regular international passenger traffic between the Port of Tallinn and other cities, 2009

Departures per week from the Destination Duration (h) Port of Tallinn during the summer Helsinki 71 2 - 3.5* 7 11 Stockholm 7 16

* depending on vessel type Source: Port of Tallinn 07

POPULATION Population of Tallinn, 1970-2007

500,000

400,000

300,000

200,000 478,974 428,537 401,372 401,821 397,150 400,781 396,193 398,434 399,685 396,010 404,005 362,536 100,000

0 1970 1979 1989 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sources: Statistical Office of Estonia, Register of Population

In 2008, the birth rate increased by 1.2% compared to the previous year. In the record months of January and April, an average of 539 births per month was registered in Tallinn.

Live births in Tallinn, 2000-2008

6,000

5,000

4,000

3,000

2,000

1,000 3,672 3,550 3,538 4,283 4,805 5,031 5,557 5,836 5,907 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Statistical Office of Estonia 08

Population by districts, 1 April 2009 District Area (km2) Population (%) Population density km2

City Centre 30.6 12 1,580 Nõmme 29.2 9.5 1,314 Lasnamäe 27.4 28 4,135 22.1 10 1,837 18.7 3.5 789 North-Tallinn 15.2 14 3,664 7.9 7 3,698 Mustamäe 8.1 16 7,932 Tallinn total 159.2 100 2,541

Source: Register of Population

General population data of Tallinn, 2008 Total (per 1,000 inhabitants) Births 5,907 14.6 Deaths 4,944 12.2 Natural increase 963 2.3 Marriages 2,676 6.6 Divorces 1,519 3.8 Name changes 578 1.4

Source: Statistical Office of Estonia Resident population by age in Tallinn, 1 January 2009

300,000 68.4 %

250,000

200,000

150,000 276,461

100,000 14.4 % 17.1 % 50,000 58,303 69,241 0

0-14 15-64 65+ Source: Population Register

National composition of population in Tallinn 2 January 2009

2.1 % 3.3 % 3.8 % Russians Ukrainians Belarusians 38.6 % 52.2 % Others

Source: Population Register 10

LABOUR MARKET

In comparison to the other areas of Estonia, the level of employment in Tallinn is high, which can be explained by the economic concentration in Tallinn and the favourable investment climate.

Population of Tallinn by economic status, 2008 (thousands)

1. Economically active population (labour force) 225.6 - Employed 215.6 - Unemployed 10 2. Economically inactive population 87.8 Labour force participation rate (%) 72.0 Employment rate (%) 68.8 Unemployment rate (%) 4.4

Source: Statistical Office of Estonia, Estonian Labour Force Survey

Employment in Tallinn, 2000 - 2008 (%)

80 71.4 72.0 68.8 69.1 68.8 70.0 69.2 70.1 70.5 70 68.8 67.3 68.9 60 64.4 60.4 60.5 62.4 62.6 62.3 50

40

30

20 12.2 12.5 9.3 10.6 10.0 10 8.2 4.5 3.4 4.4 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Statistical Office of Estonia, Estonian Labour Force Survey

The unemployment rate is the percentage of unemployed people in the labour force The employment rate is the percentage of employed people in the working-age population Labour force participation is the percentage of the labour force in the working-age population (ages 15 to74) 11

Employment in Tallinn by field of activity, 2008 thousands % Manufacturing 42.8 17.5 Trade 39.1 15.9 Real estate, rent and business services 31.6 12.9 Construction 29.6 12.1 Transport and communications 26.0 10.6 Education 17.7 7.2 State government and defence 15.4 6.3 Hotels and restaurants 10.1 4.1 Health care and social work 9.1 3.7 Finance and business services 7.6 3.1 Electricity, gas and water supply 1.3 0.5 Others 14.9 6.1 TOTAL 245.0 100.0

Sources: Statistical Office of Estonia, Estonian Labour Force Survey 12

ECONOMY

ECONOMIC GROWTH

• In 2008, GDP at current prices was 15.9 billion EUR and GDP in constant prices (2000) was 10.1 billion EUR

GDP per capita in Estonia, EUR

12,000

10,000

8,000

6,000 11,827 11,381

4,000 9,753 8,239 7,153 6,422 2,000 5,709

0 2002 2003 2004 2005 2006 2007 2008 Source: of Estonia

Real growth of GDP in Estonia, (%)

12 10.4 9.2 9 7.8 7.1 7.5 6.3 6 4.7*

3 0.2* 0

-3 -3.6 -6

-9

-12 -12.3* -15 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011*

* forecast Source: TALLINN - HOME OF BUSINESS 013

GDP per capita in the Baltic Sea Region, Real growth of 2008 (EUR) GDP by countries (%)

Norway 44,850 5.3 Sweden 30,888 Lithuania 5.1 30,342 3.9 Finland 29,952 2.8 Germany 27,144 Germany 1.7 Czech Republic 20,904 Finland 1.5 Estonia 17,082 Sweden 0.9 15,990 Denmark 0.3 Lithuania 14,352 Hungary -1.5 Latvia 13,884 Estonia -3 Poland 13,884 Latvia -5

Source: CIA World Factbook 2008

• In the Global Competitiveness Report 2007-2008 compiled by the World Economic Forum, Estonia ranks 32nd among 134 countries. The table is led by Switzerland, followed by Finland. Estonia ranks the highest among new EU member states.

• According to the Heritage Foundation and Wall Street Journal Index of Economic Freedom for 2008, Estonia ranks 12th among 162 countries.

• According to fDi, the Financial Times magazine, Tallinn ranks 11th on the list of European cities.

• Tallinn ranks 2nd on the list of cities with the best economical potential.

• Tallinn ranks 3rd place on the list of small cities and 6th place on the list of cities attractive to fDi 14

FOREIGN INVESTMENTS

• By the end of 2008, foreign investments in Estonia totalled 11.6 billion EUR.

• According to the Bank of Estonia, in 2008 foreign direct investments per capita in Estonia totalled 1,343 EUR.

According to the Bank of Estonia, a total of 1.4 billion EUR of direct investments were made in Estonia and 1 billion EUR in Tallinn during 2008.

Foreign direct investments into Estonia by years, (mn of EUR)

2,500

2,000

1,500

1,000 2,302 1,962 1,432 500 1,366 822 771 603 425 0 307 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Bank of Estonia

The rapid growth of foreign direct investments in 2005 resulted from the buyout of Hansapank shares by a foreign investor. In 2006-2008, nearly 80% of the revenues from direct investments came from reinvested revenues. 15

Inflow of direct investments into Estonia,% of GDP

25 20.8 20

15 12.8 11.7 9.5 10 8.7 8.6 7.0 8.0 5 4.0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Bank of Estonia

Direct investment shares, 31 December 2008 In Estonia by countries

60

50

40 Sweden Finland 30 58.4 Norway Russia 20 10 22.8 Other countries 8.8 6.7 6.4 0 -3.1 -10

In Estonia by fields of activity

3.9 % 8.0 % 4.9 % Finance Other business activities Fields of activitys supporting transport and 16.0 % 50.4 % travel agencies Hotels and restaurants Production of metal products, except for machinery and equipment 16.8 % Other

Source: Bank of Estonia 16

STANDARD OF LIVING

Consumer price index, 2001 - 2010 (%)

12 10.4 10

8 6.6 5.8 6 4.4 4.1 4 3.0 3.6 2

1.3 0 0.4 -0.6 -2 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010*

* forecast Source: Ministry of Finance

Main socioeconomic indicators in Tallinn, 2007-2009

EEK/month EUR/month Average gross wages 2008 14,540 929 Average net household wages per capita 2007 6,197 396 Average old-age pension 2009 4,661 298 Subsistence minimum 2009 1,000 64 Minimum expenditure on foodstuffs 2009 1Q 896 57 Minimum wage 2009 4,350 278

Source: Statistical Office of Estonia • As of 1 January 2008, the rate of dependants in Tallinn was 45.1%, i.e. the proportion of the population between the ages of 0-14 and older than 65 compared to the proportion of the population between the ages of 15-64.

FINANCE & BANKING

• Estonia has been assigned the following credit ratings:

Moody´s A1/negative (10.02.2009, rating is under review) Fitch IBCA A-/negative (03.10.2008) Standard & Poor’s A/negative (24.02.2009, rating is under review) Tallinn has been assigned the following credit rating: Moody’s A3

• According to the Bank of Estonia, there were 1,000 ATM machines and 16,194 companies accepting card payments as of the 1 January 2009.

• As of 1 January 2008, Estonian have issued a total of 1.85 million cards.

• The total number of clients using Internet banking services at the largest Estonian banks is 1,632,362 as of 1 March 2009.

Source: Bank of Estonia

Approximately 98% of the bank transfers are performed electronically; 91% of income tax declarations are made through the e-Tax Board. 18

BUSINESS ACTIVITIES

• According to the Registry Centre of the Ministry of Justice, Tallinn had registered 56,239 enterprises, incl. 3,673 self-employed persons, as of 1 April 2008. The Tax and Customs Board had registered 12,696 self-employed persons as of 1 January 2009.

The number of businesses registered in Tallinn as of 1 April 2009 by main fields of activity

self-employed NACE 2008 total enterprises persons Agriculture, forestry and fishing 438 342 96 Mining and quarrying 38 38 , Manufacturing 3,308 3,236 90 Electricity, gas, steam and air conditioning 94 94 , supply Water supply; sewerage, waste management 110 107 3 and remediation activities Construction 6,459 6,365 94 Wholesale and retail trade; repair of motor 14,866 14,440 426 vehicles and motorcycles Transportation and storage 4,141 2,338 1,803 Accomodations and catering activities 1,256 1,227 29 Information and communications 2,599 2,512 87 Financial and insurance activities 3,072 3,054 18 Real estate activities 4,804 4,732 72 Professional, scientific and technical 8,286 7,975 311 activities Administrative and support service activities 3,152 3,102 50 Public administration and defence; 12 11 1 compulsory social security Education 651 583 68 Health and social work activities 508 518 62 Arts, entertainment and recreation 865 748 117 Other service activities 1,506 1,203 303 56,239 52,566 3,673

Source: Estonian Ministry of Justice Centre of Registers and Information Systems 19

Enterprises by types of owners in Tallinn, 1 April 2009

State 22 Local municipality 12 Private Estonian persons 44,994 Private foreign persons 7,175 Source: Estonian Ministry of Justice Centre of Registers Information unavailable 363 and Information Systems TOTAL 52,566

Active businesses and the number of employees therein based on the 2007 annual reports

undeter- over NACE 2008 total mined 0 1-10 11-50 51-250 250 Agriculture, forestry and fishing 182 26 84 64 8 Mining and quarrying 20 4 5 7 1 3 Manufacturing 2,142 231 259 1,133 379 124 16 Electricity, gas, steam and air 61 3 28 18 4 5 3 conditioning supply Water supply; sewerage, waste management and remediation 69 7 11 32 11 6 2 activities Construction 3,838 460 952 1,951 390 67 9 Wholesale and retail trade; repair of motor vehicles and 6,916 870 1,535 3,806 578 113 14 motorcycles Transportation and storage 1,641 178 239 1,011 166 41 6 Accomodations and catering 793 84 75 394 190 46 4 activities Information and 1,490 226 544 594 87 32 7 communications Financial and insurance 1,629 273 1,012 286 39 12 7 activities Real estate activities 3,214 467 1.574 1,091 69 13 Professional, scientific and 5,027 810 1,816 2,188 199 13 1 technical activities Administrative and support 1,589 205 470 691 150 60 13 service activities Public administration and defence; compulsory social 4 3 1 security Education 383 51 93 209 22 8 Health and social work 415 43 42 268 51 8 3 activities Arts, entertainment and 452 84 176 163 21 6 2 recreation Other service activities 621 92 112 379 34 4 30,486 4,123 9,030 14,286 2,399 561 87

Source: Estonian Ministry of Justice Centre of Registers and Information Systems Number of companies in Tallinn with foreign holdings in 2007 6,843 Number of companies with over 50% foreign holdings in 2007 719

Companies in 2007 with turnover of over 1 million EEK 13,892 Companies with turnover of one billion EEK or more 62 Source: Estonian Ministry of Justice Centre of Registers and Information Systems

• As of 1 April 2009, there were 13 entrepreneurs per 100 Tallinn citizens.

There are a total of four business incubators active in Tallinn; three are operated by the Tallinn Business Incubators Foundation established by the City, and one is operated by TEHNOPOL, the Tallinn Technology Park. Microlink, an information technology company, has also opened a business incubator as a private initiative.

Tallinn Business Incubators Foundation:

• business incubator, 700 m², 45 workplaces; • Ülemiste business incubator in the Ülemiste City innovation park, 652 m², 38 workplaces; • A creative incubator for companies operating in creative industries will be opened in 2009.

TEHNOPOL:

• T he Mustamäe business incubator, in the immediate vicinity of the of Technology and the Estonian IT College, with 2,000 m², oriented toward technology-based companies.

The City has prepared a programme for developing small businesses in Tallinn. The following support measures are provided to companies within the framework of this programme:

• Start-up grants (for investments in fixed assets upon starting up or expanding businesses) • New job creation grants (for investments in fixed assets upon creating at least three new jobs) • Supports for creating social jobs (for wages starting with the creation of five social jobs) • Support for in-service training of company employees in Estonia (improvement of occupational knowledge and skills) • Support for company trainee supervisors (support for the instruction of trainees studying occupations related to natural and exact sciences, as well as technical, production and construction) • Support for in-service training for engineers in foreign countries (support for professional in-service training for engineers at foreign schools of higher learning, companies or technology development centres) • Patent registration grants (for covering the expenses related to international patent applications) • Trade fair grants (for participation in trade fairs taking place in Estonia) • Supports for the co-financing of cluster projects (cluster supports are directed at the co-financing of cluster cooperation projects) 21

Additionally:

• Mentor Programme • Export Mentor Programme • Programme for increasing the entrepreneurial activities of young people • Tallinn Entrepreneurship Day

Tallinn Financial Services Centre Tallinn – A Reliable Financial Services and Products Centre

Gateway to Central and Eastern European Financial Services

Centre for Financial Innovation • Invest with Estonian-based fund managers and investment banks in the Central and Eastern European region • Relocate your asset management firm to Tallinn • Move your headquarters/holding company to Tallinn

Emerging Europe dynamism with a Scandinavian mentality • Proximity to Finland and Sweden • Currency reform in 1992, local currency pegged to the Euro • Entrepreneurial Estonia – 0% corporate income tax on retained earnings

Electronic mindset • Businesses & authorities online • Highly developed online banking system; easy-to-open accounts • Creation of financial information systems, Internet banking, software for trading environments • Services related to cybersecurity • Dynamic and online Financial Supervision Authority

Experienced player spreading knowledge to the region • Gateway to Russia • Understands the culture and traditions of the former Communist Bloc • Utilising the experience of less-developed Central and Eastern European countries • Active financial services industry for exploiting opportunities in the region

Useful links: Ministry of Finance www.fin.ee Financial Supervision Authority www.fi.ee Tallinn Stock Exchange www.omxgroup.com Bank of Estonia www.eestipank.info 22

TOURISM

According to the 2009 Travel and Tourism Competitiveness Report, compiled by World Economic Forum, Estonia ranks 27th among 133 countries.

Accommodation capacity and occupancy rates in Tallinn, 2005 - 2008 2005 2006 2007 2008 Accommodation establishments 301 364 395 412 Including the number of hotels 46 48 52 53 Number of rooms 5,668 6,049 7,076 7,172 Number of beds 10,945 12,130 14,456 14,439 Room occupancy rate, (%) 60 58 55 50 Bed occupancy rate, (%) 52 49 47 42 Average cost for 24 hours (EEK) 582 598 604 601

Source: Statistical Office of Estonia, Tallinn City Tourist Office & Convention Bureau TALLINN - HOME OF BUSINESS 23

Tallinn conference centres, 2008 Number of seats in conference centres Number of conference centres 500 – 1,000 8 1,001 – 2,000 1 6,000 1

Source: Tallinn City Tourist Office & Convention Bureau

Accommodated in Tallinn, 2005 - 2008 (thousands)

1,200

1,000

800 Foreign visitors 600 Estonian citizens 1,188 1,169 1,141 1,131 Total 1,029 1,022 1,001 965 400 Source: Tallinn City Tourist Office & Convention Bureau 200 176 168 166

0 102 2005 2006 2007 2008

According to nationality, 508,962 Finnish, 62,274 Swedish, 61,845 Russian, 59,907 German, 41,762 British, and 39,167 Norwegian visitors were accommodated in Tallinn. 24

Average length of overnight stays in Tallinn’s accommodation establishments, 2003 - 2008 (nights)

2.0 1.85 1.8 1.77 1.7 1.6 1.6 1.8 1.84 1.7 1.71 1.5 1.6 1.5

Foreign visitors 1.0 Estonian citizens

Source: Statistical 0.5 Office of Estonia

0

2003 2004 2005 2006 2007 2008

Based on the 2008 Tallinn Survey of Foreign Visitors, the average stay for foreign visitors in Tallinn was 1.76 nights. Compared to last year, the duration of stays in Tallinn have demonstrated a downward trend.

Cruise ship and passenger arrivals at Tallinn ports, 2003 - 2008

400

300

Number of ships 200 Number of passengers 375 (thousands) 324 311 299 298 294 292 268 235 100 232 Source: Port of Tallinn, 205 204 Board of Border Guard

0 2003 2004 2005 2006 2007 2008

In 2008, Tallinn’s accommodations establishments housed 1.18 million tourists, that can be divided as follows based on the purpose of their travel: vacationers 73%, business travellers 24%, and those traveling for some other reason (study, health, visiting friends and family) 2%. The number of vacationers and conference attendees increased. In 2008, 62,500 more vacationers (+8%) and 20,600 more conference attendees (+47%) than in 2007 stayed overnight in Tallinn’s accommodations establishments.

The assessment of the general impression of trips to Tallinn has improved during the last three years; Finns, Russians and Latvians assess their experiences more positively. 25

FOREIGN TRADE

• The volume of Estonian foreign trade was 19.4 billion EUR in 2008. Exports totalled 8.5 billion EUR (44%) and imports 10.9 billion EUR (56%). According to the Statistical Office of Estonia, the trade balance shortage was 2.4 billion EUR in 2008.

• Compared to 2007, the annual turnover of foreign trade decreased by 1% in 2008, while export increased 5% and import decreased 5%.

Estonian exports in current prices, 2000 – 2008 (bn EUR)

10

8

6

8.5 4 7.7 8.0 6.2 4.8 2 4.0 3.4 3.7 3.6 Source: Statistical 0 Office of Estonia

2000 2001 2002 2003 2004 2005 2006 2007 2008 26

Estonian exports/imports, 2000 – 2008 (mn EUR)

12,000

10,000

8,000

6,000 Exports 11,318 10,873

10,564 Imports 4,000 8,454 8,153 8,021 7,639 6,703 6,186 5,716 Source: Statistical 5,080 4,799 4,769

2,000 4,615 4,003 3,643 3,698 Office of Estonia 3,445 0

2000 2001 2002 2003 2004 2005 2006 2007 2008

Estonian exports by countries, 2008

Finland Sweden 18 % 25 % Russia Latvia

14 % Lithuania 3 % Germany 3 % USA 11 % 5 % Norway 6 % Denmark 5 % 10 % Others

Source: Statistical Office of Estonia Major exporters:

• Baltika - manufacture of men’s and women’s clothing • BLRT Grupp - construction and repair of ships; manufacture of metal structures • Elcoteq Tallinn - manufacture of electronics products • Krimelte - manufacture of joint sealants and construction foams • Norma - manufacture of car safety belts and their components • Printall – printing • Stoneridge Electronics – manufacture of electronics equipment for the auto industry

In 2008, there were 7,913 exporting companies in Estonia, including 4,143 in Tallinn.

Tallinn’s exports by commodity: • Machinery and mechanical appliances; electrical appliances - 22% • Mineral fuels, mineral oils – 12% • Metals and metal products – 12% • Wood and articles of wood – 9% • Means of transport – 8%

Tallinn’s Imports by commodity: • Machinery and mechanical appliances; electrical appliances • Means of transport • Mineral fuels, mineral oils 27

HOUSING AND REAL ESTATE

HOUSING

Housing stock in Tallinn, 1 January 2009 Number of dwellings 197,940 Total housing stock 10,684 thousand m2 - housing area 6,948 thousand m2 - state-owned 0.1% - municipal 0.8% - private 99.1% Housing stock per person 26.4 m2 Average size of dwelling 54 m2

Source: Building Registry of the Ministry of Economic Affairs and Communications

Capacity of new buildings in Tallinn, 2005 - 2008

Category of building Volume of construction 2005 2006 2007 2008 Residential buildings Number of flats 1,695 2,000 3,408 3,026 Floor space of dwellings (m2) 138,125 144,049 254,468 221,317 Non-residential Useful floor space (m2) 197,478 288,791 512,137 270,506 buildings

Source: Building Registry of the Ministry of Economic Affairs and Communications REAL ESTATE 2009 rental prices for commercial premises in Tallinn, (EUR/m² per month)

Area City centre and the 19-48 Suburbs 10-32 Shopping centres 19-45

Source: Eri Kinnisvara overview of the real estate market, fall 2008 – fall 2009

2009 rental prices for manufacturing and warehouse space in Tallinn, (EUR/m² per month)

Area A-, B-class C-class City centre and surrounding areas 4.8-6.1 Lasnamäe, Mustamäe, Haabersti 3.8-4.8 2.2-3.8 North-Tallinn 2.5-3.5 2.2-2.9

Source: Eri Kinnisvara overview of the real estate market, fall 2008 – fall 2009

2009 rental prices for office space in Tallinn, (EUR/m² per month)

Area A+ -class A-class City centre 14-19 11-13 Areas surrounding city centre 9.6-14 Suburbs 8.3-11.5

Source: Eri Kinnisvara overview of the real estate market, fall 2008 – fall 2009

Expansion of retail space in Tallinn in 2009: • Expansion of the Shopping Centre (2008) 16,000m² • Expansion of the Ülemiste Shopping Centre 15,000 m² • Metro Plaza 1,500 m² • Rotermann Quarter (2008) 5,000 m² • Solaris 30,000 m², including commercial space 3,000 m² and office space 2,500 m² 29

TRANSPORT

• In 2008, 1,811,536 passengers passed through Tallinn Airport, for an increase of 4.8% compared to 2007. The amount of cargo totalled 41,867 tonnes, which was an increase of 84% compared to 2007. The number of flight operations (including all takeoffs and landings) was 41,654, which was a 7.2% increase compared to 2007.

• In 2008, 29 million tonnes of goods and 7.2 million passengers passed through the ports belonging to the Port of Tallinn.

Port of Tallinn 2004 2005 2006 2007 2008 Number of passengers 6,738 7,010 6,760 6,514 7,247 (thousands) Number of ships 12,381 12,373 12,025 10,614 9,132 - cargo ships 3,188 2,972 3,043 2,753 2,535 - passenger ships 9,198 9,401 8,683 7,861 6,597 Container cargo (TEU) 113,081 127,785 152,000 180,911 180,927 Turnover of goods 37,424 39,500 41,300 36,028 29,077 (thousands of tonnes)

Source: Port of Tallinn

Main flight directions,2008 (%)

Passengers Passengers Helsinki 12 Frankfurt 6 London 11 6 Stockholm 10 Vilnius 6 Copenhagen 10 Riga 5 Oslo 7 Other destinations 23 Prague 6

Source: Tallinn Airport Network of urban streets in Tallinn, 2008 (km)

Urban streets 985 Streets with sidewalks 886 Pathways and bicycle trails 159

Source: Municipal Engineering Services Department Passengers, 2004 – 2008, (includes both arriving and departing passengers)

2,000

1,600

1,200

800 1,801.536 1,708.430 1,504.832 1,401.059

400 997.461

0

2004 2005 2006 2007 2008 Source: Statistical Office of Estonia

Motor vehicles, 1 January 2009

Motor vehicles per 1,000 inhabitants 319 Motor vehicles 156,909 including - cars 129,131 - trucks 23,533 - motorcycles 3,021 - buses 1,224

Source: Statistical Office of Estonia 31

COMMUNICATIONS Estonian mobile phone operators and the number of clients, 31 December 2008 Operator EMT AS AS Tele2 Eestis AS Bravocom AS Number of clients 779,000 337,700 503,000 30,000

Source: Websites of mobile phone operators

Mobile phone service end consumer density per 100 inhabitants, 2008 (%)

149 Lithuania

142

134 Estonia

121 Finland

120 Denmark

115 Sweden

96 Latvia

Source: European Commission 14 Implementation Report, Estonian Competition Authority

On 1 December 2008, Estonia had 806,000 Internet users*.

*aged 6.-74. Source: EMOR Fixed Internet connection density per 100 inhabitants, 2008 (%)

37.3 Denmark

36.2 Holland

31.3 Sweden

30.7 Finland

24.6 Estonia

17.5 Lithuania

17.4 Latvia

Source: European Commission 14 Implementation Report, Estonian Competition Authority Proportion of Internet users among the population between the ages of 15-74, (has used the Internet in the last 6 months)

70

60

50 Estonia 40 Latvia 65 67 30 61 Lithuania 51 55 46 48 50 20 40 37 33 31 34 Source: TNS EMOR, 24 28 10 e-track Survey 0

2004 2005 2006 2007 2008

• As of the end of March 2009, Elion has 52,170 permanent Internet connections in Tallinn, of which 40,750 were private customer connections and 11,420 business client connections. During the year, the number of Internet connection increased by almost 2,000. The growth of private customer Internet connections shows that the Internet is becoming a basic commodity. At the same time, business connections are characterised by an increase of data volumes. In July 2010, all of Estonia will transition to the digital age, which has prompted a sudden increase in the number of families subscribing to digiTV in Tallinn: during the last three years, 26,397 families and companies have subscribed to Elion’s digiTV services. As of the first quarter of 2009, the number of Elion digiTV clients throughout Estonia totalled 86,900.

• According to the World Economic Forum International Technology Index Estonia ranked 18th in the list of 134 countries.

Using information and telecommunications technology in developing the national economy (ranking among 134 countries)

2003 2004 2005 2006 2007 2008 Sweden 4 6 8 2 2 2 Finland 3 3 5 4 6 6 Estonia 25 25 23 20 20 18 Lithuania 42 43 44 39 33 35 Latvia 35 56 51 42 44 48

Source: The Global Information Technology Report produced by The World Economic Forum (WEF) in cooperation with INSEAD Business School 33

In terms of using information technology for economic development, Estonia is the most successful Eastern European country.

• At the Intelligent Community Forum (ICF), held in Honolulu, Hawaii on January 21, Tallinn was chosen as one of Top Seven Intelligent Communities of the Year for the third time. Tallinn’s nomination was based on its highly developed e-systems, including Europe’s best quality ID card system, the Tallinn Technology Park, the almost 700 public Internet hotspots and successful e-government programmes. Special attention was paid to the implementation of an e-school computer application in all Tallinn schools, the widespread use of m-parking, and the ID-ticket success story.

• Tallinn is the top city in the world for wireless Internet. The U.S. TV channel Discovery Tech, which reports on popular science, history and technology, chose Tallinn as the world’s best city in terms of WiFi wireless Internet coverage.

DEVELOPMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY IN ESTONIA

• In 2005, an e-invoice portal was created with 15 large companies that send invoices: www.arved.ee. By 2009, 42 companies had joined the portal. Estonia ranks first in Europe in terms of e-invoice usage (the proportion of e-invoices is 20%). Over 300,000 e-invoices per month are sent through the portal.

• Estonia has opened 1,164 public wireless Internet or WiFi hotspots, of which 366 are in Tallinn: www.wifi.ee

• As of 1 January 2009, there are almost 700 public Internet locations in Tallinn.

• As of 1 April 2009, enterprises and citizens in Estonia have registered over 8,000 EU domain names: www.zone.eu

• M-payment – the possibility to pay for certain products and services, e.g. parking, bus tickets by mobile phone.

• Mobile ID service allows users of e-services to securely prove their identity by mobile phone, e.g. to log onto Internet banking services or provide digital signatures. Mobile ID service is an ID card counterpart in a mobile phone. The number of transactions has reached 1.4 million, and as of the end of April 2009, over 10,000 people used the service: www.id.ee/mobiil

• Citizen-orientation – national and local administrative institutions cooperate to provide citizens, officials and entrepreneurs with information and services from central state portals: • E-country Portal (1998): www.riik.ee • Citizen Portal (2003): www.eesti.ee Allows people to check on their data in various state databases and to fill out applications, as well as sign and send documents. • Information Portal (2003): www.eesti.ee The Information Portal offers forms; references to legal acts, useful websites and www services. • Information system data exchange layer X-Road (2001): x-tee.riik.ee • @eesti.ee aadress (2003) - two e-mail addresses are created for every ID-card user by the state as the official communications channel between the government and the people. • One million ID-cards have been issued in Estonia. ID-card portal (2002): www.id.ee. • Estonian E-University (2003): www.e-uni.ee • E-kool www.ekool.ee • The ID ticket system for public transportation was launched in March 2004. • Internet voting in parliamentary elections was implemented in 2007: www.vvk.ee.

• In April 2008, an E-health project was initiated by the East-Tallinn Central Hospital: patients can enter the patient portal through the website of a health care institution by using their ID card and PIN code, in order to view their own health care data, to book physician visits, and to pay fees.

• As 2009, Estonian implemented two large information systems – the Health Information System and Prescription Centre. The users of both systems are the patient on the one hand and the health care system on the other; www.e-tervis.ee

• As a rule, all authenticating and authorization operations are based on Estonia’s ID card. 35

HEALTH CARE AND SOCIAL CARE HEALTH CARE

Hospitals 8 Including private hospitals 3 Number of beds 2,765 Hospitalisations per year 107,097 Family doctor practices 258 Number of patients 459,135 Ambulance squads 17

Source: Tallinn Social Welfare and Health Care Board

• The average size of a family doctor practice was 1,780 patients.

SOCIAL WELFARE • In order to help children and families with children, child protection officials have been hired by the social welfare departments in the city districts. In 2008, a total of 49 children protection officials worked in the city districts.

• In 2008, 632 children without parental care were registered in the city districts. In 2008, 215 children were housed in orphanages in Tallinn.

• As of 1 January 2009, there were 103,189 pensioners, including 86,613 pensioners in Tallinn. 36 EDUCATION

Educational level of economically active residents in Tallinn, 2008

Thousands % Elementary and basic education 15.7 7 Secondary, vocational, and vocational secondary education 109.7 48.6 after basic education Higher education 100.1 44.4 Vocational secondary education after secondary education 19.0 8.4 Bachelor’s, master’s, or doctoral degrees 81.1 36 Total 225.5 100

Source: Statistical Office of Estonia, Estonian Labour Force Survey

Educational institutions in Tallinn, 2009

Early elementary schools 4 Basic schools 15 Upper secondary schools 61 Vocational schools 18 Adult education 3 Universities 22 Public universities 4 Private universities 4 State-owned applied institutions of higher education 5 Private applied institutions of higher education 9

Source: Ministry of Education and Research, Tallinn Education Department

There are 41,428 students studying in Tallinn’s universities in 2008-2009.

• In addition to their native language, most people speak English and Russian, many speak Finnish, German and French. 037

The number of graduates from the Estonian higher education institutions in 2008, by fields of study

Education 946 8.3% Liberal arts and sciences 1,253 11% Social sciences, business and law 4,309 38% Nature sciences and exact sciences 1,142 10.1% Technology, manufacturing and construction 1,188 10.5% Health and welfare 1,154 10.2% Services 1,085 9.6%

Source: Ministry of Education and Research

As of the beginning of the 2008-2009 educational year, there are 1,076 students studying in English-language study programmes of higher education, most of them in the higher education institutions of Tallinn.

Source: Ministry of Education and Research

• In 2009, the illuminated recreational trails in the Järve Woods and Stroomi Park Woods will be completed, along with the youth information point on Freedom Square, and the North Sports Hall at Uus-Maleva 8.

• In 2009, almost 300 events will take place in the course of the active recreation programme, entitled “Tallinn Moves” – 289 to be exact – and the organisers will be provided with 2.8 million EEK of support.

• In 2009, a new procedure for supporting sports activities was implemented, whereby support is provided to 19,410 amateur athletes from 4 to 19 years old, as well as disabled people of all ages. In 2009, the basic amount paid per person was 4,500 EEK. In addition, the coaches that deal with amateur athletes, who have third-, fourth- or fifth-level professional qualification, receive 9 million EEK in support.

• In 2009, various competitions and sports events will be supported on a project-basis, including the Tallinn Championships, Tallinn’s Best Athletes programme, local competitions, Tallinn’s official team and participation in international competitions. CULTURE

As of 1 April 2009, according to the Tallinn Cultural Heritage Department, Tallinn has

45 museums 40 galleries and exhibition halls 24 libraries 13 concert halls 13 theatres 4 cinemas 13 culture centres, community centres 13 senior citizen centres 24 youth centres 7 open youth centres and a Youth Information Centre 1 Botanic Garden 1 Zoo Source: Cultural Heritage Department, 42 churches Estonian Ministry of the Interior

Since the fall, it has also been possible to make virtual visits to the Kumu Art Museum. TALLINN - HOME for BUSINESS 39

Tallinn has many traditional events and festivals: • The Reval Hotels Cup International Athletics Competition (January/February) • Simpel Session 2010, Europe’s largest indoor skateboarding & BMX competition • Festival of Lights (January and February) • Estonian Film Festival (March) • Estonian Music Days (April) • Jazzkaar, international jazz festival (April, September and December) • International Choir Competition (April) • Old Town Days (June) • Song and Dance Festival (July) • International Nations Cup team competition in steeplechase (July) • Õllesummer (July) • International Organ Festival (August) • Birgitta Festival in the ruins of the St Birgitta Convent (August) • International Tallinn 2009 athletics competition and the BIG Gold League final (August) • August Dance Festival • Design Night in the Old Town (September) • Credo Orthodox Music Festival • New World Festival • Tallinn International Horse Show (October) • Golden Mask Theatre Festival (October and November) • Tallinn International Open Cup 2009 in American and Standard Dances (November) • St. Martin’s Day Fair at the Saku Arena (November) • Black Nights Film Festival (December)

The following events will take place in Tallinn in 2009-2010:

• Schoolchildren’s World Championships in Athletics in Stadium on June 25-30 • World Powerboat Championships in classes JT-250, S-550 and O-125 on July 10-12 on Lake Harku • European Figure Skating Championships in Saku Arena (January 2010) 40

ENVIRONMENT

• Tallinn has many sites under nature protection, such as the Pirita River’s ancient valley, the meteorite trace in , the banks in Maarjamäe, Kadrioru Park and others.

• From an art history point of view, the greenbelt around the Old Town, comprising well- preserved historical parks, is unique. For instance, the and the romantic Löwenruh Park.

• Tallinn has three Natura 2000 areas: the bird sanctuary, the Pirita River habitat and the Rahumäe area.

Tallinn includes:

Areas of scenic preservation 3 Parks 50 Preservation area parks 24 Single sites under nature conservation 120 trees 54 stones and boulder fields 48 springs 5 various surface forms (escarpments, outcrops, spits, meteorite impression) 13 Public beaches (Pirita, Stroomi, Pikakari, Kakumäe and Harku) 5

Tallinn has 40 km2 of parks, forests etc. 41

TALLINN’S BUDGET Budget of Tallinn 2004 - 2009

2004 2005 2006 2007 2008 2009* Budget (mn EEK) 4,853 5,530 6,487 7,058 7,954 8,098 Budget (mn EUR) 310 353 415 451 508 518

* As of 24 March 2009 Source: Tallinn City Government Office, Financial Services

Revenues, 2009 EEK (th.) EUR (th.) Personal income tax 4,330,000 276,748 Grants from the government and other institutions 1,150,000 73,501 Revenues from operations 764,387 48,855 Loans 600,000 38,348 Land tax 322,000 20,580 Capital gains 229,700 14,681 Decrease in share capital 143,000 9,140 Sale of rights 121,028 7,735 Parking charges 98,800 6,315 Rental profits 95,230 6,087 Dividends 95,000 6,072 Decrease in deposits 84,548 5,404 Foreign financing 60,679 3,878 Other revenues 56,740 3,626 Advertising fees 36,500 2,333 Sale of other goods and services 25,739 1,645 Fees from closing streets 24,000 1,534 Financial income 14,000 895 Fees 11,252 719 Other revenue from assets 7,500 479 Other grants 2,049 131 Adjustments to claims -174,087 -11,127 Total revenues 8,098,065 517,580

Source: Tallinn City Government Office, Financial Services 42

Expenses, 2009

EEK (th.) EUR (th.) Education and science 1,806,094 115,435 Expenses related to state allotments and 1,089,255 69,619 allotments of other institutions Roads and streets 956,093 61,108 893,907 57,133 Culture 509,589 32,570 Social care 498,308 31,849 City support services 489,319 31,274 Engineering networks 360,000 23,009 Housing and organization of land exploitation 264,403 16,899 Ground maintenance 247,392 15,812 Sports 217,650 13,911 Reimbursement 201,747 12,894 Financial expenses 116,900 7,472 Health care 88,040 5,627 Business environment 71,328 4,559 Municipal planning 69,764 4,459 Public security 68,310 4,366 Reserves, incl. 62,870 4,018 City Government´s reserve fund 25,000 1,598 City districts reserve fund 12,870 823 Reserve for claims related to court disputes 12,000 767 and other legal disputes Reserves for reassessment of assets 10,000 639 Reserve for actions related to the assets and activities of the City 1,000 64 Reserve of self- and co-financing 2,000 128 Youth work 31,356 2,004 Environmental protection 29,380 1,878 Public services 22,355 1,429 City management 14,223 909 Other economic activities 300 19 Increase in share capital 300 19 Financial lease payments 182 12 Change in liabilities* -11,000 -703 Expenses in total 8,098,065 517,580

* Reflects the difference of the revenues and expenses presented at the time they were incurred and payments that were made. Source: Tallinn City Government Office, Financial Services 14 %

Investment plan, 2009 (%)

1% 1% Roads and streets 4% 5% Education and science Culture and heritage protection 9% Ground maintenance

45% Social care and health care 14% Housing and organization of land exploitation City support services (incl. public order) Sports and youth activities 21% Source: Tallinn City Government Office, Financial Services

Investment plan, 2009

EEK (th.) EUR (th.) Roads and streets 571,046 36,498 Education and science 265,873 16,993 Culture and heritage protection 176,253 11,265 Ground maintenance 108,776 6,952 Social care and health care 68,460 4,376 Housing and organization of land exploitation 45,100 2,883 City support services (incl. public order) 15,291 977 Sports and youth activities 12,460 796 Total investment projects 1,263,259 80,740 Increase in share capital 300 19 Total investment activities 1,263,559 80,759

Source: Tallinn City Government Office, Financial Services TALLINN CITY GOVERNMENT

Tallinn City Enterprise Board Vabaduse väljak 7, 15199 Tallinn, Estonia Tel: +372 640 4218, fax: +372 640 4208 [email protected] www.investor.tallinn.ee