Amsterdam’s scenic Prinsengracht (the Prince’s Canal in Dutch) buzzes with tourists, traffic, and a massive construction project. Cranes and equipment tower over a historic building that served as the Palace of Justice. Soon it will become the city’s most hyped new luxury hotel: Rosewood Amsterdam, the brand’s debut in the Netherlands.
The project, which was announced in late 2020, is far behind schedule; Rosewood staff told Robb Report the opening date is now confirmed for February 2025. Despite the delays, the 134-room property, which will feature three restaurants and an indoor pool, is one of the lucky ones. It’s among the last hotels permitted to be built in the Dutch capital for the foreseeable future, thanks to yet another measure by Amsterdam’s city council in an ongoing effort to reduce overtourism. (Metropolises’ responses to swarms of travelers can be seen all around Europe, from new taxes in Venice to protests in Barcelona.) The capital, which has a population of 1.2 million, had 9.4 million visitors in 2023 and recorded 22.1 million overnight stays, a figure that could soar as high as 24.5 million by the end of 2024.
The gemeente’s latest round of restrictions, announced in April, tightened an existing rule halting the construction of new hotels (with the exemption of about two dozen properties, including the Rosewood, that had permits already secured). Other widely publicized measures include a ban on cruise ships (which has yet to be implemented); a proposed ban on private jets; and sharp hikes to the city’s tourism tax.
It’s all part of broader ongoing efforts to improve the quality of life for residents while reducing “nuisance” tourism—raucous bachelor or bachelorette parties, for example—which has become especially problematic in a city long known for its culture of tolerance.
“Historically speaking, this is the place where a lot of the features of liberalism were invented,” says Russell Shorto, author of Amsterdam: A History of the World’s Most Liberal City. “And I kind of feel that whether or not they specifically are aware of that, that’s what draws people here . . . It’s kind of a victim of that success.”
Case in point: The famous 9 Straatjes (9 Streets), an area so crammed with selfie-snapping tourists that walking, let alone riding a bike, is tricky. However, some hospitality insiders contend that certain measures have unintended consequences on luxury tourism—the very segment of the market the city claims it’s aiming to attract.
“We all work for the same purpose—what’s good for the city and for residents—and we all have the same target,” says Gozde Eren, general manager of Andaz Amsterdam Prinsengracht and Hyatt Regency Amsterdam, who is also Hyatt’s area vice president of the Netherlands and Sweden. “But what we’re trying to do at the moment is hurting more established, luxury tourism, rather than day tourism, and that’s where I think we should be more focused on.”
High Taxes and Lost Revenue
Popular streets like Kalverstraat are jam packed.
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One of the most problematic measures for high-end hotel owners is the recently hiked city tax. In 2024, it jumped from 7 percent (plus €3, or just over $3, per person occupying the room) to a flat 12.5 percent rate—the highest in Europe.
Eren says there seems to be an incorrect assumption that guests willing to pay for a five-star hotel will simply overlook these higher tax rates, which can easily add up to hundreds of dollars.
“If you pay €200 [$223] for a room, 12 percent is something, but if you pay €500 [$556], 12 percent is a much bigger impact,” Eren explains. “People have a certain budget, let’s say €500 [$556], and they see the city tax, and maybe they go one [room] level below. So on the whole, instead of this helping the city to attract better tourism, actually, no—people are just going for the lower [room] categories.”
Once Amsterdam’s cruise port closes, there’s additional potential for lost revenue.
“These people go maybe now to Rotterdam or somewhere else, but they still come to Amsterdam for a day,” says Arne Heuwekemeijer, general manager of Anantara Grand Hotel Krasnapolsky, a five-star property in the popular Dam Square. “With the cruise passengers, pre- or post, they will stay in five-star hotels. They have big spending power. They’re sophisticated people—they go to the museums, spend money on local things and spend money in hotels. But this is all disappearing, and this is exactly the people who we need.”
The hotel ban, meanwhile, has received mixed reviews. Limited supply leads to higher prices, of course—but some hoteliers also point out that competition is good for business.
“With the arrival of certain luxury brands, you do appeal to a broader audience and that attracts a new customer base that maybe historically wouldn’t have come to Amsterdam,” says Ruurd Hooijer, the Amsterdam-based vice president of hotel development for the Set Collection, a global collective of luxury properties, including the five-star Conservatorium in Amsterdam’s Museum Quarter.
Another divisive issue: the status of brothel windows in the Red Light District, locally known as De Wallen, which Amsterdam mayor Femke Halsema is on a mission to move out of the city center—something many hospitality business owners strongly oppose. Erik Sadao, founder of Sapiens Travel, a high-end, Amsterdam-based DMC that also provides services in Luxembourg and Belgium, says removing this “cultural heritage” would be a big mistake.
Seeing this unique aspect of Amsterdam is often high on first-time visitors’ lists, he says, including luxury travelers. In 2020, the city banned tours in the district, so Sadao adapted his offerings. Now he gives guests a deep dive into the history of the neighborhood beforehand, along with tips about how to respectfully explore it on their own. (zno lighting up, either: Smoking marijuana on the streets is now prohibited, and visitors aren’t allowed in coffeeshops.)
“We need to educate people about why that area exists, so when they visit, it has meaning,” Sadao explains. “We can use this to teach a new generation of travelers about tolerance. I understand why the city doesn’t want any guides there, but if we give people the right information, it’s already mission accomplished.”
No Signs of Stopping
It’s no wonder so many tourists flock to Amsterdam, with its iconic row houses, cafes and shops along the Prinsengracht canal.
Julian Castle/Loop Images/Universal Images Group via Getty Images
Even with all the restrictions, visitors seem to have an insatiable appetite for Amsterdam that’s not likely to slow down any time soon. In addition, a year of planned celebrations honoring Amsterdam’s 750th anniversary in 2025 will kick off in October 2024.
In light of that popularity, a common sentiment in the luxury hospitality market is a plea to the city council for better communication and collaboration to minimize the most damaging effects of anti-mass tourism measures.
“Many of the hotel GMs have worked abroad, so they know other cities and how it can work,” Heuwekemeijer says. “The city council should make use of us more than they currently do. They seem to think we are only complaining, but we want to help make the city better. It’s good for everybody.”
A spokesperson for the Deputy Mayor Sofyan Mbarki declined to comment.
But even if luxury hotel execs don’t agree with every measure the city council has rolled out, they appreciate the commitment to preserving the city’s unique character.
“If I compare Amsterdam right now to where Amsterdam was even 10 years ago, I see that we’ve gone through a great evolution to make it more internationally appealing to luxury travelers,” Hooijer says. “For me, the West Village of New York feels very similar in terms of the vibe. We just need to make sure we don’t lose that.”
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