Amsterdam tourist tax hike could generate 900 million euros, says citizen initiative

Raising Amsterdam’s tourist tax from 12.5 percent to 32 percent over the next four years could generate 900 million euros, according to the citizen initiative Stichting Amsterdam Heeft Een Keuze. The foundation says the hike would also likely lower tourist numbers, benefiting the city’s residents.

Amsterdam faces challenges from a massive influx of tourists, nearly 24 million last year. The foundation is taking legal action to compel the city to follow its 2021 regulation, which set an annual target of 20 million visitors.

Earlier this week, Amsterdam’s municipal government told the court in the case brought by Amsterdam Heeft Een Keuze that the regulation’s 20 million overnight stays cap is not legally binding. The city said it is an “administrative target,” not a firm standard that citizens can claim as a right.

Amsterdam Heeft Een Keuze says the extra revenue could be used to “fundamentally improve the city” in several ways. Possibilities include converting thousands of hotel rooms into homes and planting one million trees.

Amsterdam’s city council adopted the Tourism in Balance regulation in 2021, following support from over 30,000 residents through a citizen initiative. The rule caps hotel stays at 20 million per year and obliges the city to act if projections exceed 18 million.

Even though Amsterdam’s tourist tax stays at 12.5 percent in 2026, overall costs for visitors are climbing sharply. A national VAT hike on hotel stays, from 9 percent to 21 percent, pushes the total tax burden to roughly 33.5 percent.

The city is keeping an eye on the impact of the VAT hike. If tourist numbers do not drop enough in 2026, Amsterdam’s government may consider raising the local tourist tax further starting in 2027.

Alderman Sofyan Mbarki suggested channeling extra tax revenue into a municipal real estate fund. The funds could be used to acquire city-center properties, like those on Warmoesstraat, and convert them into homes or local businesses, boosting the area’s livability.

Hotels have been banned since late 2024 from adding extra sleeping spaces, such as bunk beds or pods, to rooms during renovations. Starting in April 2026, private holiday rentals in areas like Centrum and De Pijp will be limited to 15 nights per year. The city also plans to cut the number of river cruises docking in Amsterdam by 2028 to no more than 1,150 annually.