Amsterdam tourist tax to reach 20% by 2031

Visitors booking a hotel stay in Amsterdam face steep tax rises over the coming decade. Under plans by the municipal coalition of PRO and D66, the local tourist tax will climb from its current 12.5% to 16% in 2027, followed by annual increases of 1 percentage point until it reaches 20% in 2031.

Alongside a national rise in VAT on hotel stays from 9% to 21%, the combined levy will mean that taxes make up more than 40% of the cost of a room. Only Bhutan charges more for overnight stays, with a flat fee of 100 dollars per person each night.

Figures from the Royal Dutch Catering Association show Amsterdam already leads major European cities for overnight levies. A two-adult stay in a 200-euro four-star room incurs 25 euros in tourist tax here, compared to 20 euros in Milan, 17 euros in Paris and Barcelona, and 10 euros in Venice.

Growing municipal reliance on overnight revenue

The city’s tourist tax stood at 5% per stay in 2015. It brought in 48.2 million euros in 2014 and 66.4 million euros in 2016, before rising sharply following structural reforms in 2020 and 2024.

By 2025, annual revenues reached 274.9 million euros.

Tourist tax now forms one of the city’s largest income streams, behind only property taxes at 414 million euros and parking fees at 400 million euros. The money is earmarked to keep streets clean and fund property purchases in the city centre.

Council leaders rely on the levy to shift mounting public costs from residents onto visitors. However, the drop in travel during the pandemic revealed the risks of that reliance, when emptied hotels forced spending cuts and higher local property taxes.

Industry backlash and untaxed day visitors

Hospitality groups and opposition parties have raised alarms over the impact on the local economy. An ABN Amro study indicates Amsterdam is rapidly losing business and conference guests, who are being replaced by tourists with lower average spending.

Concerns also focus on daytime visitors. Tourism professor Jan van der Borg noted that day-trippers generate significant street congestion and use city infrastructure between 10:00 and 17:00 without paying overnight taxes, while hotel guests bear the full burden.

The coalition is examining whether day visitors could contribute through an expanded entertainment tax on museums and attractions, though practical details remain unresolved.

Opposition parties are preparing amendments for the upcoming 2027 municipal budget to request exemptions for business travellers and outlying areas like Weesp.

Source: Het Parool