Estonia business travel information

Doing business in Estonia

Since regaining independence in 1991, Estonia has transformed itself into a highly motivated and dynamic center of commerce. The business environment has blossomed, thanks mainly to the stability of the political situation and the sound economic policies of the government. Estonia achieved its overriding foreign policy goals of the past decade when it acceded to both NATO and the European Union in the spring of 2004. The accession process is currently underway for Estonia to join the Organization for Economic Cooperation and Development (OECD).

After enjoying 8% average annual GDP growth since 2000, the economy started to show signs of cooling in 2007 when GDP growth slowed to just over 6%. The global financial and economic crisis of 2008 has forced the Estonian economy to face these challenges even faster than expected. In December 2008, the Bank of Estonia forecast a decline in Estonia’s 2009 GDP that may exceed 4%. The unemployment rate has increased to 6% in the third quarter of 2008, compared to 4% in the second quarter.

The economic crisis has brought a few positive changes for Estonia as well. By December 2008, the inflation rate had dropped to 8%, from an average for that year estimated to be above 10%. 2009 estimates are that inflation will fall below 5%. High inflation has been the main obstacle to Estonia meeting the Maastricht criteria for Euro adoption by 2011 – a top priority of the government. With inflation now coming down, Estonia might struggle with another Euro accession criteria. Estonia’s 2009 government budget deficit may be greater than the 3% of GDP allowed under Maastricht.

Being a small country with a population of 1,4 million, Estonia relies for commercial success on its greatest natural asset geography. Estonia lies just south of Finland and across the Baltic Sea from Sweden. To the east is the huge potential market of northwest Russia. After Estonia regained its independence in 1991, Russia inflicted a hostile tariff regime for Estonian imports, which caused most local businesses to shift their export markets to European countries. This situation began to change after 2004, when Estonia joined the EU, and Russia lifted its double-tariff regime on Estonian products.

This has increased considerably the level of Estonian business interest toward the Russian market. Estonia’s membership in the EU has increased Russian business interest in Estonia as well. Sound, liberal economic policies and an excellent business climate have ensured high levels of foreign direct investment (FDI) in Estonia. Companies partly or wholly owned by foreigners account for one-third of Estonian GDP and over 50 percent of the country’s exports. Scandinavian countries are the largest foreign direct investors in Estonia. Sweden has 39% of the total, followed by Finland with 25%, and the Netherlands with just over 6%. The United States accounts for 1,4% of foreign direct investment stock.

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In case of emergencies

Before you go on your business trip to , Estonia you should always get a travel insurance with a complete coverage.

Make sure your health care insurance is sufficiently covered.
Maybe this is already covered in your regular health care insurance but often you will need to cover this with the travel insurance. Also a good travel insurance should cover the costs of travel for a relative in case of seriously illness or an accident.

The business trip travel insurance should also cover the costs of search, rescue and repatriation.
When you go on business trips on a regular basis, the easiest way to get insured is with an annual multi-trip insurance.

Keep in mind that you can also use this insurance for your pleasure trips so don`t forget to include to insure your leisure activities.

When you are in need of medical attention you can go to:
East-Tallinn Central Hospital
Ravi Street 18, Tallinn 10138
Info tel: (372) 620-7015 (24 hours)
A lot of doctors in every department speak English, just ask from the information.

Business Etiquette and Protocol

If your are planning a business trip to Estonia it is a good idea to know at least a little about the culture and etiquette in Estonia. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in Estonia to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use formal names, professional and academic titles.
  Estonians are direct, do not confuse this with rudeness.
  Silence is part of the communication style.
  Never interrupt somebody.
  Dress formal and conservative.
  


• Meetings and negotiations:
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute.
  Stand up and shake hands with everyone upon arriving at the meeting and leaving.
  Remain standing until invited to sit down or others do so.
  A long time is spent to getting to know you before the business conversation begins. Trust is very important.
  Agenda’s are not strictly followed and a meeting can take much longer then planned.
  First appointments are more socially oriented, Estonians would like to know you a bit better at first.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Follow up a meeting with a letter with all agreements outlined.
  


• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little.
  If making a toast, stand up.
  Put a napkin on your lap, eat not too much but finish your plate.
  Keep your hands above the table when eating.
  After finishing your plate lay your knife and fork parallel on your plate with the handles to the right.
  Thank your host at the end of the meal.
  

Some phrases in Estonian

Estonian is an Uralic language and is closely related to Finnish. Most common foreign languages learned by Estonians are English, German, Russian, Swedish and Finnish.

Although most people speak some English, some Estonian phrases can always come in hand....

Hello.	Tervist.
How are you?	Kuidas käsi käib?
Fine, thank you.	Tänan, hästi.
What is your name?	Mis on teie nimi?
My name is ______	Minu nimi on ______
Nice to meet you.	Meeldiv teid kohata.
Please. / You’re welcome	Palun.
Thank you.	Tänan.
Yes.	Jah.
No.	Ei.
Excuse me.	Vabanda.
I’m sorry.	Vabandust.
Goodbye	Head aega
I can’t speak [much] Estonian.	Ma ei räägi [palju] eesti keelt.
Do you speak English?	Kas te räägite inglise keelt?
Is there someone here who speaks English?	Kas on keegi siin kes räägib inglise keelt?
Good morning.	Tere hommikust.
Good evening.	Tere õhtust.
Good night.	Head ööd.
Take me to _____, please.	Viige mind _____, palun.