Amsterdam: City’s new tourist tax aimed unfairly at budget travelers

Craig Nelson

9 years ago

The Red Light District in Amsterdam. Photo: Mike

There’s perplexing news for budget travelers heading to Amsterdam. In an effort to cut down on stag parties and budget travelers, Amsterdam is planning a higher tourist tax that would take effect in 2018 on travelers that stay at hotels and hostels in the city center. By targeting accommodations in central neighborhoods, Amsterdam hopes to steer party revelers and backpackers elsewhere and attract more upscale visitors.

City alderman Udo Kock explained it this way in late December: “At the moment, 28% of bookings involve budget hotels. That has to be reduced.”

By increasing the city tax (and possibly adding an additional fixed tax) to hotel bills in the heart of Amsterdam, the new law will make the area’s hotels less affordable and, they hope, attract a more upscale (and less rowdy) clientele.

While we can understand any city’s difficult dealings with large groups of tourists, especially rowdy crowds, Amsterdam may also hurt the wallets of budget travelers in the process. Contrary to many stereotypes, not all budget travelers spend their time roaming around the Red Light District or staying up late into the evening carousing along the canals. To blanket all budget travelers as detrimental to a city’s economy seems to us like, ahem, a cheap shot.

Related: Amsterdam hotel advice: Read this before booking your hotel

Our take on Amsterdam’s proposed tourist tax

As experienced budget travelers, we know that not everyone staying in a pension or hostel is just looking for an excuse to party. Just like visitors who prefer the finer things in life and have a little more in their bank account, we come to Amsterdam to see the world-class museums, dine at local restaurants, and enjoy an evening’s stroll along the canals. And for many travelers on tight budgets, even a small increase in costs can cause them to cancel their vacation plans.

We love staying at affordable hotels, not only because we love the price, but also for unique features such as historic buildings, old-world atmosphere, and personal service that you can only get from a smaller hotel. And Amsterdam is lucky to have dozens of affordable hotels with plenty of character and charm. Sometimes we even choose to stay in the Red Light District. Of course, there can always be the chance of unruly guests, but bad behavior doesn’t limit itself to hostels or budget hotels.

Why do we stay at budget hotels in Amsterdam? To have more money for cheese! Photo: Craig Nelson

We’ll never turn down a stay in the lap of luxury — especially when we can score a fantastic deal. But the more money we can save on accommodations, the more we can spend on our trip and come back to Europe again and again. While there’s a stereotype that all budget travelers spend their extra cash on drinking and drugs in Amsterdam, many of us actually spend our leftover euros on cheese at the outdoor markets or splurge on a rental bike to cruise around the city like a local.

As more and more hotels turn towards the boutique model, the price of traveling through Europe keeps climbing. We’ve talked about our favorite budget hotels in Paris hotels that have gone upscale, but is a global trend that is not coming to an end anytime soon.

Even with the recent decline in the euro, finding a good hotel at a decent price in any European city is increasingly becoming a challenge. And to now have a major city like Amsterdam favor luxury hotels over more affordable options just means that budget travelers could get squeezed even more in the years to come or pushed out of the city center.

Let’s hope the city finds a way to curtail the rambunctious behavior of a few tourists without penalizing the majority of travelers that just want to save a little bit on their trip.

Your thoughts?

What do you think of Amsterdam’s new tourist tax? Are they right to take a stand against unruly travelers? What’s your advice for the city? Share with us in our comments section below!