IDFA, the international documentary festival held in Amsterdam since 1988, pays travel and accommodation for its invited guests, and in November it expects about 2,500 film professionals from around 80 countries.
Director Cees van ‘t Hullenaar says the hotel bill for those guests is heading towards €500,000, some €60,000 to €80,000 more than in previous years, even though fewer guests are coming.
According to hotel adviser Horwath, room prices in Amsterdam fell by an average of 3.7% last year, but taxes and charges mean guests now pay about 8% more overall.
The national VAT rate on hotel stays rose from 9% to 21% in January, and Amsterdam’s tourist tax has climbed from 5% of the room price in 2018 to 12.5% now.
The city plans to raise it to 16% next year and to 20% in 2031.
Van ‘t Hullenaar says the festival has already had to cut events, which risks fewer films, fewer screenings, smaller audiences and less income.
IDFA drew 264,000 visitors last year, about one eighth fewer than before the pandemic.
Read our guide to Amsterdam’s local taxes to see how the tourist tax fits alongside the city’s other levies.