Large Finnish construction projects underway around Tallinn landmark Viru Hotel

The Viru Hotel, the landmark of Estonian capital Tallinn, is currently undergoing extensive renovations. Its new conference centre and restaurant were opened in October. The façade of the hotel will be rebuilt, and a large shopping complex is under construction next door. The hotel, which was built by a Finnish construction company during the Soviet period, officially joined the Sokos hotel chain in September. It was acquired in June by SOK, which runs supermarkets, hotels, and restaurants in Finland. The shopping centre is being built by Pontos, the local subsidiary of Finnish construction company SRV. The Estonian tax system favours construction: if profits are invested back in a company's operations, no corporate taxes need to be paid on the profits. According to the new director of the Viru Hotel, Markku Tarnanen, some 70 stores will be opened in the new mall. The hotel itself will get 90 new rooms on top of the existing 400. The need for conference services is expected to grow in Estonia after the country joins the EU in May 2004. Viru will attempt to shift its focus to business travellers in the near future. At present, some 65 percent of the guests at the hotel are tourists. Finns account for 80 percent of all Viru Hotel guests.