Amsterdam tourist tax set to increase in effort to tackle overtourism

Amsterdam will increase its tourist tax rates to better support residents and infrastructure while tackling issues of overtourism. Photo / Unsplash

Amsterdam has announced its tourist tax will rise in 2024, making the city’s traveller fee the highest in Europe.

The city’s tourist tax will increase to 12.5 per cent and will apply to travellers staying in the city overnight or visiting by cruise ship. Residents will not face increased property taxes or parking fees.

In practice, the increase means tax on an average room rate, which is €175 a person (about NZ$310), would rise from the present average of €15.25 a night ($27) to €21.80 ($38). For cruise ship passengers, the tax will rise from €8 to €11 a visitor a day.

The money raised by the increase in tax will go towards welfare and youth service organisations, support the introduction of green and play spaces, and better fund waste collection in the city. Simultaneously, it is hoped the increase will tackle issues of overtourism and take some pressure off residents to support crucial city infrastructure and services.

Hester van Buren, deputy mayor for finance, highlighted that the increase will allow the city to support residents facing financial hardship.

“Many Amsterdammers and [neighboring urban districts] are still struggling to keep their heads above water due to sharply increased prices ... In 2024, the charges for residents will not increase. However, the tourist tax will go up: visitors will thus help to pay for the city to carry out its tasks. This allows us to address the consequences of overtourism and direct additional resources to keeping the streets clean and solving acute problems in neighbourhoods and districts.”

The city has previously made efforts to discourage overcrowding and inappropriate behaviour in the capital’s streets — last year the city launched a campaign asking certain travellers to “Stay Away”. It proposed limiting some of the tourist activities that bother permanent residents.

Beyond Amsterdam, there are other popular tourist destinations that seek to charge visitors to increase tourism funds and fight overtourism.

Next year, Venice is set to introduce a €5 fee for travellers looking to enter the historic city (introduced after a near escape from the Unesco World Heritage in Danger List). Australia factored a tourist tax into the last Budget announcement. Before the busy and sweltering summer season, France asked travellers to diversify their itineraries beyond the big attractions. Bhutan doubled tourist fees while reopening borders after lifting Covid-19 restrictions. Thailand has also played with the idea, though it has faced ongoing delays. Last week the Indonesian island of Bali announced details of a tourist entry levy being introduced next year.