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Analysis

Amsterdam: appeal to soon be called into question?

The city, with its historical canals classified as UNESCO World Heritage has developed business tourism through its access infrastructures and its large reception capacities.

Amsterdam is the 4th largest commercial port in Europe and benefits from an international airport at Schiphol which handled 68.5 million passengers in 2017, about 7.7% more than in 2016. 2016 was marked by the hosting of the European Athletics Championships in July, providing a strong basis for comparison over the summer. Museums are one of Amsterdam's major tourist attractions.

Faced with the increase in the number of visitors (17 million per year in 2016 for 850,000 inhabitants), local authorities implemented in October 2017 a measure prohibiting the opening of new shops targeting tourists (souvenir shops, "typical" fast food stands...), with the aim to stem the rise in property prices. In 2019, a new flat tax should come into force, up to 10€ per night whatever the range of hotel or tourist accommodation. AirBnB rental will now also be limited to 30 days per person per year, which could lead to demand being redistributed to hotels.

Amsterdam's chain supply saw renewed growth: +924 net additional rooms, or more than 3.6% increase.

XO Hotels Group entered the market; this brand composed mainly of hotels previously operated under the Best Western and Golden Tulip / Tulip Inn banners, and independent hotels, redistributes the ranking to the midscale segment.

After a 5.2% increase in RevPAR in 2016, Amsterdam recorded new growth in its hotel performances: RevPAR gained 11.2% to 116€, stronger than the national average growth (10.4% in 2017). The occupancy rate, the highest of the Dutch cities studied, reached 85.5% and increased by 4.6 points in 2017. RevPAR growth was supported by a 5.1% increase in the average price to €135.6.

On the rise for years, Amsterdam's performance could be impacted by the opposition movements against mass tourism that are emerging within the local government.

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