Amsterdam has long been celebrated for its attractions, but it's also known for something else—its tourist tax, which currently ranks as one of the most expensive in Europe. And that isn't about to change anytime soon.
The stunning city renowned for its picturesque canals, cycling culture, world-class museums and architecture has taken the initiative to levy a higher rate of tourist tax as part of its proactive stance in addressing the challenges posed by overtourism.
City authorities have announced an increase in tourist tax for visitors, set to take effect next year, raising it to 12.5 per cent. To put it into perspective, if a traveller pays 175 euros for a room, this adjustment will add 21.80 euros to their nightly stay cost, as opposed to the current 15.25 euros.
Amsterdam's tourist tax is currently 7 per cent, with an additional three euros per night. This flat rate will be eliminated if the proposal is definitively approved, according to the local television station AT5 in the Dutch capital.
The additional revenue generated from this tax will help Amsterdam cope with the overwhelming influx of tourists, particularly those arriving on cruise ships that include the city in their itineraries. It is estimated that this measure will bring in an extra 65 million euros in tourist taxes annually starting in 2027. This financial boost will play a crucial role in addressing the challenges associated with overtourism, such as maintaining cleanliness and addressing urgent issues in neighbourhoods and districts.
Amsterdam is expected to welcome approximately 20 million tourists by the end of this year, a staggering number that necessitates careful planning and resource allocation. According to authorities, funding essential city missions becomes possible with higher tourist taxes, which enables mitigating the effects of overtourism and maintaining clean streets. It will also help resolve pressing issues in various neighbourhoods and districts. The ultimate goal is to establish effective strategies for managing overtourism. As early as 2017, the city took a stand by prohibiting the opening of new souvenir stores.
This isn't the first time that an adjustment to the tourist tax has been considered as a means to mitigate the impacts of overtourism. A regulation implemented on January 1, 2020, pursued the same objective, with rates increased to 7 per cent for hotels and campgrounds (in addition to one euro per person per night) and 10 per cent for accommodation rentals, such as those offered through Airbnb.
Amsterdam isn't alone in considering adjustments to its tourist tax; Paris is also contemplating a similar move. As per a financial memorandum of understanding between the greater Paris region and the Ministry of Transport, there are plans to triple the city's tourist tax, with the aim of financing transportation improvements in the region. This initiative comes at a time when major infrastructure projects are well underway in preparation for the Paris 2024 Olympic Games.
