Netherlands tourism faces pressure from rising taxes and VAT

The Dutch tourism sector is facing economic pressures due to rising costs, including increased tourist taxes and a significant hike in VAT on accommodations from 9 percent to 21 percent. While tourist taxes have seen high percentage increases, their actual impact on total municipal revenue remains limited; in 2026, the average rate is expected to be 4.54 euros per night. Amsterdam has significantly increased its rates to manage tourist flows, contributing to a rise in the share of tourist tax within municipal budgets.

These rising costs are impacting booking behaviors, particularly among German tourists, who represent a major segment of visitors to the Netherlands. Reports indicate that bookings at certain holiday parks from German travelers have dropped by as much as 50 percent compared to the previous year. Experts from ING suggest that higher costs make the Netherlands less competitive compared to neighboring countries like Germany and Belgium, which maintain lower VAT rates. This trend, combined with rising labor costs in the hospitality sector, threatens the Netherlands' position as a primary holiday destination.