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 from Jones Lang LaSalle
Fast-growing region Baltic Sea Region is Europe’s fastest growing region Source: CIA World Factbook
Tallinn – the capital of Estonia (population 400 000) 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
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 recreation World-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 DISTRICT COUNCILS CITY DISTRICTS ADMINISTRATIONS City Administration Structure CITY COUNCIL CITY COUNCIL OFFICE COMMITTEES CITY DISTRICT COUNCILS CITY GOVERNMENT CITY DISTRICTS ADMINISTRATIONS DEPARTMENTS HAABERSTI KESKLINN KRISTIINE LASNAMÄE MUSTAMÄE NÕMME PIRITA 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 Tallinn – capital of Estonia, population 400 000 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 City rights were given to Tallinn on May 15, 1248 (758 years ago). Since 2002 Tallinn City Day has been celebrated on this day. We are proud of Old Town which is included in the UNESCO World Heritage List. City Council is a local government unit of Tallinn elected by the voting citizens of Tallinn. It is independent in deciding the matters in the competence of the local government and acts only in the interests and the name of the citizens. The City Government is the local government’s executive body. Seven members: the Mayor and six Deputy Mayors.
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 Enterprise Board 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
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
E-mail: Ulli.Karu@tallinnlv.ee Thank You! Ulli Karu E-mail: Ulli.Karu@tallinnlv.ee http://investor.tallinn.ee