Amsterdam City Council passed the 2027 budget including an increase of the tourist tax from 12.5% to 16% starting in 2027. The coalition led by Mayor Femke Halsema and comprising left-wing PRO and centrist D66 parties plans to raise the tourist tax by 1% each year until it reaches 20%.
Opposition from Hospitality and Cultural Sectors
Forty-seven hospitality leaders, including entrepreneur Won Yip and outgoing Corendon CEO Gunay Uslu, signed an open letter opposing the tax hike. They warned that higher taxes could push visitors to stay outside Amsterdam overnight rather than reduce visitor numbers. They stated, “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.”
Cultural organizations also voiced concerns, highlighting the impact of increased accommodation costs on international artists participating in events like the Holland Festival, where 90% of guests are from abroad. A festival spokesperson said, “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.”
Use of Tax Revenue and Official Responses
Alderman Melanie van der Horst from the ruling coalition cited the need for higher
revenue to address city issues such as waste collection. She referenced city-commissioned research indicating the tax boost would reduce tourist numbers without decreasing overall revenue. Mayor Femke Halsema emphasized the urgency of addressing over-tourism despite the opposition.
Opposition parties VVD, CDA, and JA21 challenged the tax hike, arguing the city had not sufficiently analyzed its negative consequences. VVD council member Myron van Gerhardt criticized the coalition’s approach, questioning if the goal was to reduce visitors or generate more revenue. He noted the tax might not affect disruptive tourists but would deter those the city wishes to attract, who make a
positive contribution.
Political Alternative to Percentage-Based Tax Increase
The opposition coalition proposed replacing the percentage-based tourist tax with a fixed rate of 14.50 euros per person per overnight stay. This fixed amount aims to target financially capable visitors while possibly discouraging less desirable types of tourists. The amendment seeks to address hospitality and cultural sectors’ concerns as well as political opposition to the planned tax increases.
Managing Over-Tourism and Visitor Behavior
Amsterdam confronted record tourism levels last year with 21 million visitors despite the existing tourist tax. Officials aim to manage the strain on densely populated neighborhoods by increasing the tax to modulate tourist inflow. Critics warn that higher accommodation costs
could shift overnight stays to surrounding areas outside Amsterdam, reducing spending in the city center and potentially undermining local businesses.
