Tallinn -

A City to Invest In

Good location for business

• Crossroads between technology-rich Scandinavia and resource-rich Russia.

• Business-friendly and stable environment

• One of the world’s most liberal economies (7th position in index of Economic Freedom for 2006, by The Heritage Foundation)

• Tallinn is a Rising Urban Star, according to a May 2003 report fromJones Lang LaSalle

GDP Real Growth rate (%), 2005 est.

7,80

7,10

6,40

2,40

2,20

3,30

1,70

0,80

0,60

1,70

Latvia

Estonia

Lithuania

Sweden

Denmark

Poland

Finland

Germany

Netherlands

European Union

Fast-growing region

Baltic Sea Region is Europe’s fastest growing region

GDP per capita (USD), 2005 est.

33 500

30 500

30 300

29 700

29 600

16 400

13 700

12 800

12 700

Denmark

Netherlands

Finland

Germany

Sweden

Estonia

Lithuania

Latvia

Poland

Source: CIA World Factbook

Economic Engine of Estonia

• 1/2 of the companies and employment

• 1/2 of the national GDP

• 2/3 of all corporate profits

• 4/5 of the total foreign direct investment and foreign visitors

Tallinn – the capital of Estonia (population 400 000)

Innovations

• Tallinn is an IT-driven city

55% of Estonia’s population are Internet users (2005)

75% of the income tax declarations are made through

the e-Tax Board (2005)

98% of the bank transfers are performed electronically (2005)

• Excellent testing ground for new technology

Good infrastructure and modern services for testing

Population comfortable with innovations

Good opportunities for outsourcing, research and product

development

Pleasant environment

• Business-friendly and stable environment

• Good quality hotels and multi-lingual customer service

• High life quality

• Pleasant living

• Good possibilities for

recreationWorld-class cultural performances

Excellent sports facilities

Extensive beach areas

12 theatres, 32 museums

(new KUMU Art Museum)

Structure of the economy

• Main sectors in Tallinn:

Transport & logistics

Transit trade (mainly cargo port operations)

Tourism

Business services (70% of the service sector revenues)

Traditional industries (metal & machinery, food, furniture, assembly)

Innovative industries (ICT applications, engineering, automation)

• Service industries (trade, hotels & restaurants, transport & communication, financial intermediation, real estate & business services) constitute 57%, industry 15% and construction 7% of the regional gross value added in Northern Estonia (Tallinn + Harju County).

• Service industries in Northern Estonia make up 69%, construction 64% and industry 48% of the total volume of the respective sectors in Estonia.

References

• Transit trade/Logistics: DFDS Transport, Schenker, Lidl,

KarstadtQuelle, Miss Mary of Sweden • Retail: Rimi Baltic (Kesko Food & ICA Baltic)

• Real estate development: Linstow International, Skanska

• Business services: Colliers International, IBM, Adecco

• Finance: Swedbank, SEB, Nordea, Sampo

• Manufacturing: ABB, Elcoteq, LGP Allgon, Paulig

• Tourism: Radisson SAS, Golfest, Holiday Club

• Consumer goods: Coca-Cola, McDonalds

Major Investments of Tallinn

• Education and science

• Infrastructure and road construction

• Business environment

• City transport

• Culture and art

• Sports and recreation

City Administration Structure

CITY COUNCIL

CITY COUNCIL OFFICE

COMMITTEES

CITY DISTRICT COUNCILS

CITY GOVERNMENT

CITY DISTRICTS ADMINISTRATIONS

DEPARTMENTS

1. HAABERSTI 2. KESKLINN3. KRISTIINE4. LASNAMÄE5. MUSTAMÄE6. NÕMME7. PIRITA8. PÕHJA-TALLINN

• Urban Planning• Housing Economy• City Enterprises & Business

Development• Municipal Engineering Services• Land Issues• Social Welfare and Health Care• Cultural Heritage• Education• Sports and Youth• City Archives• Vital Statistics• Transport• Environment

CITY OFFICE

• Accountancy Department• Administrative Department• Legal Department• General Department• International Relations• Public Relations• Finance Service• Human Resources Service• IT-Service• Internal Controller Service• Town Hall

Enterprise Board structure

CITY ENTERPRISE BOARD

Business support and

development unit

Tourist office & convention

bureau

Supervision of municipal

companies

Outdoor advertisement

tax

Consumer protection

Tallinn City Enterprise Board

Business Development Unit

• Promoting Tallinn as a good business location

• Developing and promoting high-technology and knowledge-

intensive entrepreneurship

• Promoting cooperation between companies and research

institutions

• Developing SME

• Favoring the establishment of university spin-off companies

• Favoring additional training and retraining of the workforce

Tallinn City Tourist Office & Convention Bureau

• Promoting and marketing Tallinn as an internationally known tourism destination to leisure and business tourists

• Maximizing the benefits of tourism for Tallinn, the citizens and the local economy by:

increasing the number of business and leisure tourists;

extending the tourists´ length of stay in Tallinn;

improving the satisfaction of the tourists visiting Tallinn. • Promoting Tallinn as an international meeting place and incentive

destination

Tallinn City Enterprise Board

How?

• Marketing Strategy – responsibility of state or the city, scope

• Co-operation with Enterprise Estonia, Chamber of Trade and

Commerce, neighboring municipalities

• Marketing of innovative environments is not as to sell travel

destination: Communication must be focused – how to define and

catch target segments

• How to use leverage from Baltic Sea Region/Baltic Metropoles

networks, best practices from region/worldwide

How?

Next steps

• Setting up Local Marketing Board – 07.2006

• Setting up ToR, contracting experts, developing

systematic approach for strategy

• Preparing pilot marketing strategy – Q4 2006

• Mainstreaming experience, dissemination –

2007

Thank You!Ulli Karu

E-mail: Ulli.Karu@tallinnlv.ee

http://investor.tallinn.ee