The Amsterdam City Council approved a budget on November 12, 2026, that increases the tourist tax from 12.5 percent to 16 percent starting in 2027. The left-wing PRO and centrist D66 coalition, led by Mayor Femke Halsema, plans to raise the tax by one percentage point annually until it hits 20 percent. Amsterdam hosted a record 21 million tourists last year, straining infrastructure and public services in the city center.
Hospitality and Cultural Sectors Warn of Negative Consequences
Forty-seven industry figures, including hospitality entrepreneur Won Yip and outgoing Corendon CEO Gunay Uslu, signed an open letter opposing the tax hike. They warned the increase might encourage visitors to
stay overnight outside Amsterdam while still visiting the city center by day, potentially reducing spending within the city. The cultural sector expressed concern that higher accommodation costs could deter international artists and speakers, who comprise approximately 90 percent of talent at events like the Holland Festival. A festival spokesperson stated the rise in VAT and tourist taxes pressures the artistic budget, forcing choices between cutting programs or raising prices.
City Officials Cite Over-Tourism and Municipal Needs
Alderman Melanie van der Horst said the additional revenue is required to fund essential municipal services such as waste collection. City-commissioned research indicates the tax increase is expected to reduce the
number of tourists without compromising financial resources. Mayor Femke Halsema and the coalition emphasized the priority of mitigating over-tourism despite the objections from cultural and hospitality sectors.
Opposition Parties Challenge Tax Increase and Propose Alternatives
Right-wing opposition parties VVD, CDA, and JA21 expressed criticism of the tourist tax hike. VVD council member Myron van Gerhardt argued that the coalition failed to analyze potential downsides and questioned if the tax aims to reduce visitors or generate revenue. He noted that the tax could deter desirable tourists while not affecting those that cause disturbances to residents. The opposition proposed an amendment to fix the tourist tax at 14.50 euros per
person per overnight stay, targeting visitors with higher financial means and potentially fewer disruptions.
Stakeholder Quotes Highlight Disagreement Over Tax Impact
In the open letter, hospitality leaders including Won Yip and Gunay Uslu said, “If higher prices lead visitors to stay overnight outside Amsterdam instead, that does not mean those visitors stop coming to Amsterdam. They will still visit the city center during the day but would ultimately spend less money there.” A Holland Festival spokesperson added, “The rise in VAT and tourist taxes directly impacts the festival’s artistic budget, so the options are decreasing the program or increasing the prices.” Alderman van der Horst explained the
revenue use as “for example, waste collection.” VVD council member Myron van Gerhardt criticized noisy tourists, saying they “bother residents, and make a lot of noise,” and questioned whether the tax policy sought “fewer visitors, or a means to raise more money.”
