Amsterdam is struggling with overtourism, but the industry brings in a lot of money

According to the Economist, Amsterdam is one of the most popular travel destinations in the world, closely followed by Paris and Milan. The ranking shows that Amsterdam not only has the highest number of tourists per inhabitant, but also generates high revenues through overtourism.

The Dutch capital has long attracted an inordinate number of tourists with its architecture, culture, and relaxed drug policy. According to the newspaper's ranking list, Amsterdam tops the list of the most visited cities with over 10 arrivals per inhabitant, resulting in spending of €11,000 per inhabitant. Paris and Milan follow with eight and six arrivals per inhabitant, respectively.

Even if the figures seem high for the tourism industry, tourists are also a good source of income for the Dutch city. According to the Economist, tourists visiting Amsterdam spend four times as much as tourists from other most visited cities such as Milan.

Despite the high revenue from tourists, Amsterdam is struggling with the tourism industry. Overcrowded streets, museums, increased rents, and the number of accommodation options such as Airbnb are squeezing the local housing market.

The political leadership in Amsterdam has therefore introduced various measures to curb tourism: A cap of a maximum of 20 million overnight stays per year has been set, the supply of hotel accommodation has been reduced, cruise ships have been banned, alcohol has been banned in the city center, and hotel taxes have been increased.

The municipality decided it wants to relocate the city's passenger cruise terminal by 2035 so that it is no longer in the city center. The number of cruise ships allowed to dock at the Passenger Terminal Amsterdam (PTA) will also be halved starting in 2026, the city's Executive Board set in June.

Currently, 190 cruises are allowed to dock annually at the PTA near Amsterdam Centraal Station. That will be capped at a maximum of a hundred 18 months from now.

Furthermore, it is not just about curbing tourists in general but also about what kind of tourists the Dutch capital attracts. For example, in the future, fewer party tourists should come to Amsterdam mainly for the Red Light District. These tourists overly locate themselves there because of the adult entertainment and coffee shops and have attracted negative attention from residents through violent outbursts or other unpleasant behavior.

The municipality has, therefore, taken measures to reduce the crowds in the red light district, including earlier closing hours for bars, a ban on cannabis smoking on the district's streets, and an increase in the tourist tax. There are also plans to relocate the red light district outside the city center.

While Amsterdam's residents would be happy to see fewer tourists, the high income that the city generates from tourists speaks for a thriving tourism industry. "An Amsterdam with fewer tourists would be a poorer city," concludes the Economist.