Amsterdam City Council approved a budget for 2027 that raises the tourist tax from 12.5% to 16%. The council coalition led by Mayor Femke Halsema intends to increase the tax by 1 percentage point annually until it reaches 20%.
Hospitality and Cultural Sectors Oppose Tax Hike
Forty-seven figures from Amsterdam’s hospitality industry, including entrepreneur Won Yip and outgoing Corendon CEO Gunay Uslu, signed an open letter warning that higher tax rates could push visitors to stay outside Amsterdam. They argued: “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 institutions also expressed concern, highlighting the Holland Festival’s reliance on international artists who make up about 90% of its lineup. 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.”
City Government Defends Tourist Tax Increase
The city government, led by alderman Melanie van der Horst, defended the tax hike as necessary to fund services such as waste collection. She said city research shows the increase will reduce tourist numbers without harming municipal finances. Mayor Femke
Halsema emphasized the priority to stall over-tourism as Amsterdam hosted a record 21 million tourists last year, burdening dense neighborhoods.
Opposition Parties Propose Fixed Tourist Tax Alternative
Opposition parties VVD, CDA, and JA21 challenged the rise by proposing a fixed tourist tax of 14.50 euros per person per overnight stay. VVD council member Myron van Gerhardt criticized the increase, questioning if it aims to reduce visitors or simply raise revenue. He said the tax hike could deter the city’s preferred tourist demographics without affecting disruptive visitors who “bother residents, and make a lot of noise.” The fixed rate proposal targets wealthier and possibly less disruptive tourists.
Impact on Cultural Events and Visitors
The
increase is expected to affect visitors staying overnight in Amsterdam from 2027 onward, as the tourist tax rises from 12.5% to 16%, with planned annual hikes until 20%. Cultural event organizers warned that higher accommodation costs constrain budgets and limit the ability to attract international artists, critical for events like the Holland Festival.
