(CNN) -- -- Overlooking the Baltic sea, the city of Tallinn, rich with medieval architecture, cobbled streets and inviting cafes, seems an unlikely business travel destination.
Yet after more than a decade of free-market reforms, the capital city of Estonia is rising as a strategic hub, linking Russia and northern Europe.
The country's economy has been transformed. Now, 90 percent of the country's banking is done online -- a far cry from its days as a member of the Soviet Union.
Traffic passing through Tallinn airport has increased by 17 percent a year since independence, according to the Travel Trade Gazette Europe, and airlines have boosted services.
No-frills Estonian Air now services 13 European destinations and flies between London's Gatwick airport and Tallinn six times a week.
The carrier even bucked the prevailing trend last year by posting a net profit of 5.2 million euros ($6.2 million). It carried 389,000 passengers.
Helicopter flights now cross the Gulf of Finland from Helsinki to Tallinn, 28 times a day. It takes 18 minutes to travel between the two capitals.
"There are big expectations for (the country) due to its location, but also due to the link it has with Russia," Salvatore Candido, Director of Baltic States for the European Bank for Reconstruction and Development, told CNN.
"(Estonia) can play an extremely important role, especially with western companies aiming to be based within the EU, but looking to penetrate the Russian market."
Since Estonia joined the European Union on May 1 visas have become a thing of the past for EU citizens. Those coming from the U.S., Australia, Japan and a host of other nations also do not require visas.
Although most business travel to Estonia is expected to originate from within the union itself, the country is hoping to attract executive travelers from further afield.
Pro-business environment
The travel trade is rapidly becoming an essential part of the Estonian economy.
The tourism authorities are currently setting up a bureau to promote conferences in three major cities. It is also a priority for investment.
Currently 60 percent of conferences held in Estonia take place in the capital, including at the Saku Suurhall conference center, which can seat up to 6,000.
Trade and investment in the country has also increased in the last decade, due to business incentives.
"There is a very competitive work force, readily available and well educated," says Patrick Queen of Galvex Estonia.
The U.S. based steel company is the country's single largest investor from overseas. It opened a plant back in 2002 at a cost of over $200 million.
"The tax system in Estonia is very good, there is no corporation tax for re-invested profits and generally it is a very good place to invest," explains Queen.
Francis Loughran, a trade and investment manager for the Nordics and Baltics with the UK Department of Trade and Industry, is also confident of a business travel boom.
"Travel to the Baltics has increased since their EU membership was confirmed and it will go up even more," he told the Times newspaper.
