Introduction Estonia economy has continued to demonstrate success because of the government’s interests to growth and economic freedom. A small country with about 1.32 million people, Estonia competes with some of the best economies in the world. The Heritage Foundation (2016) has ranked the country 9 th globally in terms of Economic Freedom (The Heritage Foundation 1). The country has been recognized for simplified tax systems, free and dependable regulatory environment, property rights, and favorable support global business support. Consequently, Estonia has developed a resilient and highly reliable economy. Moreover, the business environment is extremely friendly for startups and foreign investors. It has been able to survive the Euro crisis better than other economies in the region. The geographical position of Estonia makes it ideal for hotel investment and not many global hotel brands have discovered it. The country is relatively small, and it is located in the Northern Europe on the Baltic Sea. It is at the center of North and South and East and West, and many refers to it has a place where civilizations clashes. It is an ideal tourism destination in Europe. Estonia enjoys positive trade relations with Finland, Germany, Russia, and Sweden among other European countries. Political Environment Political Risk Political Stability Estonia is relatively stable since it regained its independence from the Soviet Union in 1991 (Laar 1). It is a stable multi-party democracy, which has matured over the years to become a member of NATO and the European Union since 2004. Besides, Estonia joined the Organization for Economic Co-operation and Development in 2010 and became the first country from the former Soviet Union to adopt the euro as official currency in 2011. Any possible turmoil in the future With a stable democratic space, there is no anticipated possible political turmoil in the near future. Besides, the ruling party is extremely popular, having won majority seats in the March 2015 elections. Given its relatively stable, dynamic, and modern economic status, no possible protests, such as the ones currently being witnessed in Brazil, South Africa, Hong Kong and others, may emanate in the country. Estonia also has the lowest debt-to-GDP ratio among the EU member countries. The judiciary is transparent and not subject to political influences. Any terrorist attacks Notably, there is a low threat from terrorism and no known attacks in the recent past. Nevertheless, terrorism is now a global risk with indiscriminate attacks targeting public places, government installations, and other soft targets. Estonia is always on alert for possible ISIS attacks. Legal Environment Legal system for hotel classification Estonia has a mandatory national hotel classification system regulated by the Rescue Board, the Consumer Protection Board, and the Health Protection Inspectorate (The European Consumer Centre Network 14). Further, these facilities are categorized into motels; hotels, guest houses, hostels, holiday home, visitor’s apartment, and bed- and—breakfast Classes are based on the stars systems, and it ranges from 1 to 5 while motels have 1 to 3 star ratings. Bigge