Estonia may lack customers for new spas, industry group warns

Estonia may not have enough customers able to afford visits to fill both existing spas and those in development, the head of the Estonian Spa Association told ERR. Several new spas are expected to open from late next year into early 2028.

Association chief executive Aire Toffer said high prices during school holidays and on Saturday evenings can give the impression that spas are highly profitable. Those are among the few times when visitors have time to go, she said. New operators may also underestimate costs such as electricity and water, while accommodation businesses generally have low profit margins, she added.

Toffer said a distinctive product in the right location could attract customers, but there are currently not enough Estonians with the means to fill every spa. Demand will also depend on factors such as access to Estonia and flight connections. She said the country needs to attract more visitors from abroad by improving its marketing and promoting itself as a health destination.

Businessman Oleg Gross, who is developing a spa hotel by Lake Viljandi for opening next year, said a well-made and distinctive spa should find customers. He believes operators need to offer a premium product and said Estonians have been visiting spas more often, even as foreign tourism has declined.

Gross described the hotel as an emotional rather than a profit-driven project, but said he did not expect it to make losses. His parent company operates in the grocery trade, and he said he would keep the spa running even if it incurred a small loss in its early years.

Toffer said that if many new spas open, closures cannot be ruled out. She noted that spa operators may be more patient than other businesses because the sector is not especially profitable.