Amsterdam Bans New Hotels To Curb Tourist Numbers

The ban on new hotels in Amsterdam follows a move late last year to increase tourist tax to control tourism numbers. The move is expected to increase valuations of hotels

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By Sam
Amsterdam

Amsterdam is facing a massive overflow of tourists.

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Amsterdam has anounced that it will not allow new hotel buildings to be built as part of its fight against mass tourism, the local government has said.

“We want to make and keep the city liveable for residents and visitors. This means: no over-tourism, no new hotels, and no more than 20 million hotel overnight stays by tourists per year”, it said in a statement.

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This is Amsterdam's second big move to address tourism-related challenges and generate additional revenue, Amsterdam has late last year announced that it is set to implement a significant increase in tourist taxes starting this year, potentially claiming the title of the European Union's city with the highest tourist taxes. The tourist tax is expected to surge by 12.5%, reaching a potential €21.80 per night for an average room rate of €175 per person by the end of this year. The move was aimed to put curbs on travel to the city.

This increase also extends to cruise passengers, with fees rising from €8 to €11 per visitor. Amsterdam anticipates a boost in tourism tax revenue, projecting €65 million in the next year following these adjustments.

Under the new ban on new hotels, a new hotel in Amsterdam can only be built if an existing hotel closes, if the number of sleeping places doesn’t increase, and if the new hotel will be better, for example more sustainable. However, the rule does not apply to new hotels that had already secured a permit.

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Amsterdam has been actively trying to limit tourist numbers, which run into the millions per year, mainly by discouraging sex and drug-related tourism to the red light district.

City officials, including Amsterdam's Deputy Mayor Buren, stressed that this approach aims to address the consequences of overcrowding while doubling efforts to keep the streets clean and tackle urgent issues within neighborhoods. Buren revealed discussions with other cities facing similar tourism challenges, such as Venice and Barcelona, highlighting the shared objective of financing local services without necessarily discouraging visitors.

Industry insiders believe that the ban on new hotels will significantly increase the valuations of exisitng hotels and M&A deals can increase as major hotel chains try and cash in on the surge in tourists in Amsterdam.
#Travel #Tourism #Hotels #Amsterdam
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