The Tallinn City Government has decided to continue the full rent exemption for outdoor terraces in the city until the end of May this year, with a 50 per cent rental discount from the beginning of June until the end of August. Full rent exemption will again be applied from the beginning of September until the end of December this year.
"Although the situation of the tourism industry is improving, high inflation and the war in Ukraine remain sources of uncertainty. We will therefore continue to offer rent exemptions and discounts on outdoor terraces in all parts of the city to help tourism, catering and retail businesses recover from the difficult situation," said Joosep Vimm, Deputy Mayor of Tallinn.
"As the summer months are traditionally busier, and this can be expected to be the case again this year, the rental discount will be 50 per cent in June, July and August. In May and from September until the end of the year, we will offer a 100 per cent rent exemption on the terraces to encourage the operators to provide opportunities for both tourists and local residents to spend time in the pleasant open air venues and enjoy good food in the warm autumn weather," explained Vimm.
Rental rates for city-owned premises will be reduced by 100 per cent from May 1 to May 31, by 50 per cent from June 1 to August 31, and again by 100 per cent from September 1 to December 31. In addition to outdoor terraces, the reductions will also apply to facilities such as coin machines, almond and nut trolleys, binocular stands and craft stalls. The discounts on facilities will extend all over Tallinn from the beginning of May, while until the end of April, the rent exemptions for terraces and other facilities only applies in the City Centre.
The expected financial impact of the incentives on the city budget is €600,000. The full rent exemption for facilities during the off-season will not have a significant impact on the city budget, as catering establishments are likely to refrain from using city premises at higher rental rates during this period.
The city's measures to support tenants have been approved as state aid by the European Commission. The rent incentives on city premises have been in place since the beginning of April 2020.