Amsterdam received nearly 17 million tourists last year YVES HERMAN/Reuters

Amsterdam is reportedly set to increase its tourist tax, which potentially will be the highest within the European Union.

The Dutch capital is expected to raise its tourist tax on hotel rooms to 12.5 per cent from the current 7 per cent, starting in 2024, according to news reports. The increase in tax will be imposed on travellers staying overnight in hotels, short-term rentals or guesthouses, as well as on those visiting on cruise ships.

If an average room price is £152 (€175) per person, the tourist tax as per the night's cost will rise from £13.27 (€15.25) to £18.97 (€21.80) by 2024. The fee for cruise passengers is also set to go up from £7 (€8) to £10 (€11) per visitor.

Amsterdam's new tourist tax will certainly be more in comparison to other European holiday hotspots such as Barcelona, where the tourist taxes average about £2 (€2.25) per person per day. In Paris, tourists are usually expected to pay about £3.48 (€4) per person, per night.

One of the major reasons behind Amsterdam's decision to hike its taxes for tourists is the mass tourism the city has been dealing with over the years. In 2022, the Dutch capital received nearly 17 million tourists, a number estimated to go over 20 million in 2023.

Considering Amsterdam is home to just 900,000 people, the residents' dislike towards the growing number of visitors is understandable. The Dutch government has been constantly receiving complaints from residents and businesses about the noisy and wild behaviour of tourists.

These concerns are given emphasis in Amsterdam's Tourism Policy, which clearly recognises the need to address tourism-related troubles and disturbances.

Amsterdam, one of the most popular vacation spots across Europe, is actively working to avert the type of tourism that compromises the quality of life for its residents.

Earlier it was reported that there has been a significant decrease in UK travellers in Amsterdam, indicating that the Dutch capital's "stay away" campaign is working.

The government in the Netherlands earlier this year in March launched a "digital discouragement campaign", aiming to discourage people from using the capital for weekends of sex and drug tourism.

The Netherlands is one of the most visited countries among tourists from the UK, considering how easily accessible the nation is via different means of transportation. While there is excellent access to all parts of Britain from the Netherlands, the highest capacity is on routes from London to Amsterdam, which has been a party hub for British tourists for many years.