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Letter from entrepreneurs to municipality on tourist tax hike: "Many negative consequences"

Letter from entrepreneurs to municipality on tourist tax hike: "Many negative consequences"

Business leaders in Amsterdam are urging the city council to pause and reconsider a planned hike in tourist tax that could reach 20 percent by 2031. They warn that the combined effect of this tax and a national VAT increase will place a 41 percent burden on hotel stays, threatening the viability of the city's hospitality and events sectors.

Business leaders from the cultural, hospitality, and events sectors have formally requested that the Amsterdam city council reconsider planned increases to the tourist tax. While the rate currently stands at 12.5 percent, it is scheduled to rise to 16 percent next year and reach 20 percent by 2031, which would make it the highest tourist tax in the world. Stakeholders are particularly concerned that this surcharge, combined with the national VAT increase for hotel stays from 9 to 21 percent, will result in a total tax burden of 41 percent on overnight visitors by 2031.

Industry representatives warn that these cumulative costs will drive away major conferences and international events, leading to a long-term decline in local spending and employment. They argue that tourists may choose to stay outside the city to avoid the high costs, while still accessing the city center during the day. The group is calling for an immediate suspension of the tax hike and an independent study to evaluate the total economic impact on the city.

Based on reporting by rss. Translated and condensed by LocalHeadlines.

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