The increase of VAT on accommodation from 9 to 21 percent could drastically reduce tourist visits to Zeeland next year. We are very concerned, says Deputy Dick van der Velde.
The tourism sector is an economic engine for provinces, contributing significantly to livability and amenities for residents. The 2025 Tax Plan proposes raising VAT on accommodation from 9% to 21% starting January 1, 2026. This will harm the regional economy and livability. Therefore, provinces ask the House of Representatives to reverse the planned VAT increase on accommodation.
The VAT increase raises accommodation prices and negatively impacts the number of overnight stays and spending during visits. A decline in overnight stays affects visits to cafes, restaurants, museums, shops, and transport. In smaller villages and communities, amenities will come under pressure.
Recent studies indicate the VAT increase could be disastrous. According to Significant APE, 26% to 30% of guests may go abroad after the VAT increase. About 5% of guests consider canceling their trip entirely. Additionally, Belgian and German tourists will likely avoid the Netherlands more often. ABN AMRO concludes that the proposed measure risks costing more than it yields in tax revenues.
As provinces, we fear the VAT measure will severely impact the regional economy and livability, says Deputy Dick van der Velde. Especially in Zeeland, where the tourism sector is very important. We strongly urge the House of Representatives to refrain from the VAT increase on accommodation.
