Tallinn - A City to Invest In

1. Tallinn - A City to Invest In

2. 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

3. Fast-growing region Baltic Sea Region is Europe’s fastest growing region Source: CIA World Factbook

4. Tallinn – the capital of Estonia(population400 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

5. 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

6. 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)

7. 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.

8. 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

9. Major Investments of Tallinn • Education and science • Infrastructure and road construction • Business environment • City transport • Culture and art • Sports and recreation

10. CITY COUNCIL CITY COUNCIL OFFICE COMMITTEES CITY DISTRICT COUNCILS CITY GOVERNMENT CITY DISTRICTS ADMINISTRATIONS DEPARTMENTS CITY OFFICE • 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 • Accountancy Department • Administrative Department • Legal Department • General Department • International Relations • Public Relations • Finance Service • Human Resources Service • IT-Service • Internal Controller Service • Town Hall City Administration Structure

11. Enterprise Board structure CITY ENTERPRISE BOARD Business support and development unit Tourist office & convention bureau Supervision of municipal companies Outdoor advertisement tax Consumer protection

12. 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

13. 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

14. 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 environmentsis not as to sell travel destination: Communication must be focused – how to define and catch target segments • How to use leverage from Baltic SeaRegion/Baltic Metropoles networks, best practices from region/worldwide

15. How?

16. 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

17. Thank You! Ulli Karu E-mail: Ulli.Karu@tallinnlv.ee http://investor.tallinn.ee