According to the European Tourism Association (ETOA), Amsterdam “consolidated its reputation as Europe’s heaviest local tax collector in the visitor economy” when it announced tax increases and new rates for day, accommodation, and VMR taxes on January 1, 2024, that were significantly higher than those that had been initially projected in September.
New Amsterdam tax rates that go into effect on January 1, 2024:
VMR, or the entertainment tax, is two thirds up to 2.5 euros (2023: 1.5 euros). This tax applies to canal cruises. first planned rise of two euros, or one-third)
You can find the greatest places to stay in Amsterdam right here!
Day tax: up to 75% to 14 euros (2023 8 euros) (applied to tourists on sea and river cruises stopping over). increase from the initial budget by more than a third to 11 euros)
Overnight stay taxes will rise to 12.5% (replacing the hybrid approach of 7% plus 3 euros).
“Uprating budgets agreed in September further reinforces the suggestion that Amsterdam’s current political leadership is hostile to tourism and financially opportunistic. Adverse impact on local suppliers and international leisure and MICE buyers who have already sold 2024 product, is clear.
If the move does have a deterrent effect – for example more hotel overnights booked outside the city – it is likely this would be presented as a ‘win’, though that is irrational as hotel capacity within the city is increasing, and day-trip excursions to Amsterdam would increase.”
The lobbying stance of ETOA is:
- Taxes impact competitiveness and contribute to inflation. It is important to consider the overall impact of local taxes on a nation’s competitiveness.
- Reciprocity is required; although not all income has to go toward building infrastructure and providing amenities to guests, the majority should. It is best practice to monitor and be transparent in this regard. The Balearic Islands, for instance, maintain a website that lists all the initiatives that are supported by their tourism tax.
You can find the greatest places to stay in Amsterdam right here!
- Given the industry’s product budget cycle, there should be enough notice of any change (particularly if it is above inflation), ideally 18 to 24 months in advance. Anything less than a year will undoubtedly result in expenses that business cannot absorb. As a result, the margin of the tour operator is really taxed.
- A solution that tackles the stated problem should be found through a sufficiently broad and sincere consultation process.
- Any such tax ought to be simple for travelers and companies that offer commercial lodging to pay, collect, and submit.
One thought on “Amsterdam will implement new rates for day, accommodation, and VMR taxes on January 1, 2024”