Tourist tax continues to rise mercilessly

Municipalities expect to collect 239 million euros in tourist tax this year; 11 percent more than in 2017. This is evident from new figures from Statistics Netherlands (CBS). Municipalities collect tourist tax via hotels, campsites, and holiday parks. KHN wants municipalities to stop unnecessarily raising tourist tax. This tax money should be used solely for the hospitality sector and not as a cash cow to fill municipal coffers.

For years, we have seen many municipalities adjust the tourist tax upwards every year. KHN points out that municipalities are becoming less attractive to tourists if these unlimited and inhospitable increases continue. After all, tourists are spending an ever-larger portion of their holiday money on tourist tax, while usually receiving nothing in return. This ever-increasing drain on holiday budgets causes tourists to choose other (cheaper) destinations.

Call for municipal elections

The municipal council elections will take place on March 21, 2018 (November 21 in Groningen). KHN calls upon the incoming council members to take a close look at tourist taxes. We believe that the municipal council must ensure that every euro of collected tourist tax is reinvested to enhance the municipality's tourism climate. Additionally, the new municipal council can determine, in consultation with hospitality entrepreneurs, whether the tax rate can be lowered or even abolished.

Uneven playing field

A particular point of attention is the strong rise of holiday rentals by private individuals via online platforms such as Airbnb and Wimdu. Municipalities often do not levy tax on these holiday rentals, creating an unfair playing field. After all, hotels, campsites, and holiday parks are required to charge tourist tax to their guests. Private individuals who rent out their homes via platforms like Airbnb and Wimdu should do the same. To this end, it is important that they register. Only in this way can the municipality keep track of which tourists are staying in the municipality and collect tourist tax from everyone. KHN is therefore also advocating for a fairer set of instruments in the House of Representatives.

Poll of hospitality entrepreneurs

In 2016, KHN conducted a poll among its members. This made it clear that the current structure of the tourist tax really needs to change. A majority 53% approves of the collection of tourist tax provided that the revenue is spent on the tourism sector. Spacious 43% wants the tourist tax to be abolished completely and only 3% believes that the current regulations regarding tourist tax should remain the same.

Photo: Martini Hotel

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