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Municipalities rely more on tourist tax for revenue

Tourist tax has become an increasingly vital source of income for Dutch municipalities. In Amsterdam, the levy now generates a quarter of total local tax revenue, prompting industry calls for a national cap.

By · Published August 19, 2026 at 10:51 p.m. CEST · 2 min read

Municipalities rely more on tourist tax for revenue

Dutch municipalities are increasingly leaning on tourist taxes to fund local budgets, with the levy becoming much more important over the past decade.

Across the Netherlands, tourist tax is expected to account for about 10% of municipal tax revenue in 2026, up from 4% in 2017. Even without Amsterdam, the share has more than doubled.

In Amsterdam, the dependence is much greater. The city expects to collect around €275 million in tourist tax this year, out of a national total of €654 million.

The levy on overnight visitors now accounts for almost a quarter of Amsterdam’s total revenue from local taxes.

Amsterdam plans further increases

The average tourist tax across the Netherlands is €4.54 per person per night, compared with €1.82 in 2017. Amsterdam is far above that level, with hotel and apartment guests paying roughly €18 per night.

The city currently charges 12.5% of the accommodation price. Under the coalition agreement reached this spring, that rate is due to rise to 16% next year and then increase by one percentage point annually until it reaches 20%.

Amsterdam says the higher rate is intended partly to slow tourism growth. The city wants to keep annual overnight stays to 20 million, but recorded 23.7 million in 2025.

Calls for a national ceiling

The hospitality sector is pushing back. Koninklijke Horeca Nederland (KHN) is calling for a nationwide legal ceiling on tourist taxes, warning that rapidly rising rates could make Dutch destinations less competitive.

Municipalities are free to spend tourist-tax revenue as they choose. The Association of Netherlands Municipalities says the money can support general local services and reduce pressure to raise taxes on residents.

Source: Het Financieele Dagblad

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