Amsterdam may raise tourist tax again to curb mass tourism

Amsterdam’s city council may raise the tourist tax again next year if the nationwide VAT increase on hotel stays does not reduce the number of tourist overnight stays, according to a proposal by Alderman for Economic Affairs Sofyan Mbarki.

The extra income from the proposed tourist tax could be used to boost the municipal real estate fund. This fund allows the city to purchase properties in the city center and repurpose these buildings, keeping them out of tourist circulation and reducing the disruption caused by heavy visitor traffic.

"Successfully applying these funds to streets such as Warmoesstraat and Oudezijds Voorburgwal, as we did with the Zeedijk, could genuinely transform the city center into a less commercial and more livable space,” Mbarki said in the statement.

Amsterdam currently imposes the highest tourist tax in the Netherlands. Since January 1, 2024, visitors to the capital have been paying an additional 12.5 percent on the cost of their overnight stay, a rate that will remain in effect through 2026.

Amsterdam’s city center is facing over-tourism, which is straining its livability. In 2021, the city council introduced a regulation aiming to limit tourist overnight stays to 20 million. The plan included a hotel bed cap, cutting the number of sea and river cruises in half, restricting vacation rentals, and banning tourist shops. However, these measures have so far fallen short of expectations.

Another change is that the city center will require permits for tourist-focused retail, enabling the municipality to verify businesses beforehand and combat both fraudulent operators and criminal activity.