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By: Ynze Kliphuis, Esq.
Russell Advocaten B.V.
Amsterdam, Netherlands

The city of Amsterdam is to call a halt to the development of new hotels in the city centre in 2016, officials told the Financieele Dagblad. What are the consequences for hotels intending to set up business in Amsterdam?

The city of Amsterdam is to call a halt to the development of new hotels in the city centre in 2016, officials told the Financieele Dagblad. This is based on the many complaints from inner city residents saying the city has become too crowded with tourists. The halt is in contrast to the policy of the municipal authorities of the past years, when they argued that there would be a lack of rooms and gave entrepreneurs the opportunity to transform empty buildings into hotels. Therefore, the number of hotels in Amsterdam grew rapidly. In 2014, a total of 1,300 new hotel rooms were opened in the city centre. This year, there may be as many as 3,000. Despite the growth, the hoteliers’ fears that the market would become saturated would appear to be unfounded. The price of a hotel room rose by 4% between 2013 and 2014 to an average of EUR 141 per night and the occupancy rate in August is around 90%, the paper said.

A number of cheaper hotel developments are under way outside the centre, including the conversion of abandoned office blocks. The municipal authorities see spreading tourism across the city as one way to reduce the impact on the centre.

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