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Amsterdam to increase tourist tax to shore up city finances

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Amsterdam to increase tourist tax to shore up city finances

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Amsterdam council is to increase tourist tax rates with the aim of generating an extra €30 million for the city’s coffers, finance chief Hester van Buren said on Thursday.

Nevertheless, an increase in tourist tax increase will not have a significant impact on tourist numbers, Van Buren said at the presentation of Amsterdam’s 2023 spending plans. The city, which is grappling to reduce the impact of mass tourism, had a windfall of €44 million on its tourist tax income last year.

Tourist taxes generated almost €140 million for the city in 2022.

Among the spending plans, the city has allocated €7.5 million as a one-off payment to make sure the public transport network is not affected by the downturn in passenger numbers. Last month, the GVB, which is 100% council-owned, said it would have to cut services because of mounting costs.

As reported earlier by the Parool, €100 million has been set aside for a cycle bridge over the IJ waterway in the east of the city. However, the total project is set to cost at least €300 million and the city hopes national government will help with the funding.

A further €10 million is being allocated to cut waiting lists for youth care services and €9 million to provide help and housing for newcomers to the city, such as refugees. ‘Amsterdam is a welcoming city,’ Van Buren said.

Other projects which will go ahead include the slavery museum (€29 million) and a new theatre complex in Nieuw West, although the budget for that has been reduced from €115 million to €97 million. The city is also not willing to invest in a major overhaul for the Paradiso concert hall, apart from a €500,000 grant for sound-proofing, Van Buren said.

Van Buren also outlined the city’s priorities for the coming year but said no firm budgets had been set because of other factors at play which will affect the city’s finances. ‘We have to make responsible choices for the city and its financial health,’ Van Buren said.

Controversial plans by a private company to develop a cable car over the IJ waterway are not a subject for discussion and the issue has not been talked about by the city’s executive board at all, Van Buren said.

Councillors will debate the plans on June 7 and June 8.

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