Vilnius - Overview:
Vilnius is located in the southeastern part of Lithuania, approximately 35 kilometres from the border with Belarus, and is the country's capital and most important economic, political, social and cultural centre. For almost 1000 years, the area now known as the city of Vilnius has seen habitation in one form or another. The first known written evidence of a city on the site is from 1323 when a wooden hilltop fort was situated there. During the centuries Vilnius has been under the control of other countries most notably Poland and Russia and for a brief period in 1812, the French army under the command of Napoleon. It was not until the twentieth century that Vilnius and Lithuania first saw independence, firstly between 1918 and 1940 until Russia once more occupied it, then for a few years by Germany and back to Russian control. On the 11th of March 1990 Lithuania again declared independence. Many countries around the world that have been occupied for so long have taken decades to recover, however Lithuania in a short period of time has become one of Europe’s fastest growing economies, despite a crisis in the late 1990’s. Vilnius is at the core of the countries rapid progress.
Economy
Vilnius is successfully encouraging investment and promoting economic growth. In fact, the city attracts well over half of all foreign direct investment coming to Lithuania. Some of the biggest investors include companies from countries such as Sweden, Denmark, Estonia, Germany, the USA, Finland and Britain. The city's industrial sector has undergone modernisation, while the service sector has grown considerably in recent years. During the 1990s, the proportion of Vilnius' population working in the service sector increased to well over two-thirds.
The city is an important financial centre, with all major banks, insurance companies and securities market institutions having a presence there, and has become a popular destination for tourists, attracting nearly 80% of all visitors to Lithuania.
Although tourism is not yet a major part of the economy of Vilnius, it is certainly growing as more people become aware of the city. However, with the arrival of budget airlines to Kaunas international airport just under 70 miles away and beer at around £1 (GBP) a pint, it is feared by many, that Vilnius will become a destination for ‘Stag’ parties with all of the associated problems that have been seen by cities such as Prague.
The GDP per capita for Vilnius in 2004 was 26,200 (Lithuanian Litai), which was 144.3% above the national average.
Infrastructure
Vilnius is an important transport hub and has benefited from considerable public investment in its transport infrastructure. Roads in and around the city are much improved and it lies on the Trans-European West-East transport corridor IXB, which links it with the major Baltic cities and ports.
The city's international airport, with its new passenger terminal, is responsible for approximately 85 per cent of the country's air traffic and caters for flights to and from most major cities throughout Europe. Figures published by Vilnius international airport showed that over 1.1 million passengers were served in the first 10 months of 2005, an increase of 29.5% over the same period in 2004.
There are seven railway stations in the Vilnius area, the largest of which is Vilnius Central station. At present the city is undergoing significant changes, with a variety of reconstruction and development projects underway. These include the renewal of Vilnius Old Town, which is a designated UNESCO World Heritage Site, the reconstruction of squares and main streets, and the development of a new part of the city centre on the banks of the Neris River, which will provide vast amounts of commercial and retail space. New hotels and shopping centres are being constructed and, in Cathedral Square, the Royal Palace that was destroyed 200 years ago is in the process of being rebuilt.
Workforce
A report published in 2004 by the Lithuanian department of statistics put the population of Vilnius County at around 848,500 with a workforce of 383,500. The city of Vilnius has 8 universities, providing a highly skilled and competent workforce for the city, as well as a number of research facilities.
Standard of Living
The Mercer human resources cost of living survey (Worldwide 2005) ranks Vilnius in 91st place with a score of 73.6, out of 144 cities. New York is the median for the index, in 13th place (100), Tokyo is in 1st place (134.6). Of the 44 European cities, including ex-Soviet Union, in the survey Vilnius is 42nd.
Vilnius is rapidly becoming one of the most modern cities in the Baltic States, but at the same time many people comment on the lack of stress in the region. Many attractions can be found in the city and even more only a short distance from the centre, museums and galleries to suit every taste, from the foreboding KGB museum where former detainees conduct guided tours to the Lithuanian national museum.
The architecture of the old town is among the most dramatic in Europe. Although in past years Vilnius was not well known for its choice of cuisines, recently a wide variety of restaurants have sprung up, bringing the city flavours from around the world.
Business Costs
According to Vilnius City Municipality, office rental costs are between $12 – 20 (USD) per square metre per month in the Old Town, whilst in the neighbouring regions and border regions are $8 – $15 (USD) and $2 – $8 respectively.
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