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Reasons Behind This Popular City’s Implementation of the Highest Tourist Tax in Europe

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The city passed a bill on Tuesday that will increase the city tourist tax in Amsterdam to 12.5% by 2024. This will apply to travelers arriving overnight or via cruise ship.

The City will be able to complete its duties with the help of visitors. It allows us to deal with the effects of overtourism, and to direct additional resources towards keeping the streets clean, and solving acute issues in neighborhoods and districts”, Hester Van Buren, deputy mayor for Finance, said in a press release.

According to city data, guests who pay a nightly average of EUR175 ($183.90) will pay a tax of EUR21.80 per night. The average tax used to be EUR15.25 per night. The daily cruise fee will also increase, from EUR8 ($8.41), to EUR11 ($11.56), per person.

The city said in a press release that the tourist tax would be increased further to cover the additional spending, so visitors could make a greater contribution to the city. This will help to tackle overtourism, and the financial burden on Amsterdammers and Weespers won’t increase.

In these difficult economic times, the decision to increase the tourist tax is part of an attempt “to alleviate as much pressure as possible on residents” and not raise property taxes or parking charges.

DutchNews reports , that with this new tax increase Amsterdam will be the EU city which has the highest tourist taxes. Van Buren said that the tax is the fourth highest in the world.

Some cities charge higher fees. , for instance, imposes in Honolulu a city fee of 3.5%, plus a Hawaiian “Transient accommodation tax” of 10.25.

Amsterdam isn’t the only city which relies on tourism for revenue. Iceland is planning to introduce a tourist tax to help the country achieve its sustainability and climate goals. Venice will also charge a day visitor fee starting in 2024.

EUROPE

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