Rising VAT Threatens Popular Dutch Holiday Destination

Den Haag, Netherlands - A beloved holiday destination for millions of Germans, the Netherlands, known for its picturesque beaches and charming cities, is facing significant changes that could impact tourism. Starting January 1, 2026, the Dutch government, led by Prime Minister Dick Schoof, is set to increase the value-added tax (VAT) on accommodation from the current 9% to a steep 21%.

This tax hike will affect all forms of lodging, including hotels, guesthouses, holiday parks, campsites, and hostels. While the government aims to address budget deficits through this increase, industry leaders are expressing deep concerns about the potential repercussions for tourism.

Mikael Andersson, CEO of the holiday home providers Roompot and Landal GreenParks, has criticized the government's proposal, arguing that it will deter foreign tourists, particularly from Germany, who are vital for many regions in the Netherlands. A significant decline in visitors could lead to reduced revenue and job losses in the tourism sector.

The Koninklijke Horeca Nederland, the national hospitality association, has also raised alarms over the tax increase, highlighting that nearly 800,000 jobs in the Netherlands are directly linked to tourism. A downturn in travel to the Netherlands could result in a substantial impact on the job market, with many positions at risk.

Marco Lemmers, head of Conscious Hotels in Amsterdam, echoed these concerns, warning of severe consequences for the hospitality industry. The tax increase is not limited to accommodations; it also threatens the profitability of attractions such as amusement parks, museums, and sports facilities, which could see significant declines in revenue if tourist numbers drop. The HISWA-RECRON water sports and leisure association estimates potential losses across the industry could reach approximately 826 million euros if foreign visitors stay away.

Additionally, the proposed VAT increase will affect Dutch residents, as millions of locals vacation within their own country. Andersson pointed out that about 13 million Dutch citizens take holidays in the Netherlands each year. He argues that higher costs will force many to reconsider their travel plans, potentially opting for shorter trips or foregoing vacations altogether.

As the government prepares to implement this tax increase, the tourism sector is bracing for a challenging future that may reshape the landscape of travel within the Netherlands.