The increase in VAT on accommodation from 9 to 21 percent directly impacts the operations of hotels, holiday parks, guesthouses, and B&Bs. According to Sjuk Akkerman of ING, the investment capacity for quality, sustainability, and innovation is particularly at risk.
Higher VAT directly affects the accommodation sector
Since January 1, the standard VAT rate of 21 percent applies to short-term stays in hotels, holiday parks, guesthouses, and B&Bs, among others. Previously, accommodation was subject to the reduced rate of 9 percent.
According to Sjuk Akkerman of ING, this presents entrepreneurs with a difficult choice. They can pass on the higher tax to guests, at the risk of fewer bookings. Or they can absorb part of the increase themselves, causing the margin to drop.
That choice is particularly relevant for overnight recreation, where price sensitivity is already increasing and guests are looking increasingly critically at the total cost of a stay.
Cost increase comes on top of wages and local taxes
The VAT increase does not come in isolation. Akkerman points out that the sector is already dealing with higher labor costs, rising tourist tax, and increasing local charges. At the same time, companies must continue to invest in quality, sustainability, personnel, and innovation.
For hotels and holiday parks, this means that the flexibility of the revenue model may run out. Companies with high fixed costs, a large staff, or major investment targets, in particular, may have less room left for renovation, energy-efficient measures, or the renewal of accommodations.
This makes the VAT increase more than a fiscal measure. It also affects the quality and future-proofing of the tourism offering.
Competitive position under pressure in border regions
The impact is particularly severe in coastal and border regions. Staying in the Netherlands is becoming more expensive compared to neighboring countries where VAT rates for accommodation are lower.
This can influence the choice of both domestic and foreign guests. For a short holiday or weekend getaway, the price difference with Germany or Belgium quickly becomes part of the consideration.
This is particularly relevant for Dutch coastal municipalities and border regions, as accommodation spending often has a ripple effect on hospitality, retail, day recreation, transport, and local employment.
Coastal municipalities warn of broader impact
KIMO/VNKG, the Association of Dutch Coastal Municipalities, previously warned of the consequences of the VAT increase. Fewer overnight stays affect not only hotels and holiday parks, but also the regional economy and the livability of coastal towns.
According to Akkerman, the challenge does not lie solely with The Hague. Municipalities also have influence through tourist tax, parking policy, and local charges. If those charges rise simultaneously, the total price pressure for guests could increase further.
For destinations, it is therefore becoming more important to better align fiscal policy, tourism ambitions, and economic effects.
Entrepreneurs must focus more sharply on value
According to Akkerman, a revision of the VAT rate can help, but entrepreneurs can also make adjustments themselves. Consider sharper packages, clear price communication, more added value, and cooperation within the region.
For holiday parks and hotels, it is becoming important to compete not only on price, but also on quality of stay, convenience, experience, and local added value. At the same time, affordability remains a point of attention, especially for families and short holidays.
The core question becomes: how does the Netherlands remain attractive as a destination, while entrepreneurs retain sufficient room to invest?
More information
Source and more information: Sjuk Akkerman, ING