A trip to Europe is the stuff of dreams for many of us, but price is always going to be an issue. Some parts of Europe are just too expensive, and for a large portion of people, one of the priciest parts to go is in Amsterdam. This is especially true when it comes to accommodations.

Why are hotels in Amsterdam so expensive? Amsterdam’s surprisingly pricey hotels are a result of supply and demand mixed with a conscious decision to bar excess numbers of travelers from arriving on the scene. 

For many people, it can be hard to understand why Amsterdam’s hotels are consciously raising their pricing to such a high level. Here’s the truth behind the jaw-droppingly high prices of accommodations.

Why Are Hotels In Amsterdam So Expensive?

Amsterdam’s historic size is actually the root of the problem. Unlike other major European cities, Amsterdam is actually fairly small, with a population of only 800,000 people as of 2019. Its size in terms of area is also incredibly small.

 How this city’s petite population affects traveling groups is what has been causing the astronomical price surges people have been seeing in the past couple of years. Here’s a quick run-through of the economics that play a hand in Amsterdam’s hotel pricing. 

Amsterdam’s Size Problem

Amsterdam is one of the smallest major cities to serve as a tourist destination in Europe. You can walk through the city in only 45 minutes! With a population that’s still under 1 million, Amsterdam could barely make the cut as a major city.

Ever since the country legalized cannabis and gained a reputation for being a party-hardy destination, interest in the city has spiked. It continues to get interest thanks to the area’s beautiful architecture, arts scenes, and fine dining.

The big issue here deals with the astronomical number of tourists that visit every year. This city has only 800,000 people…and yet it receives over 17 million visitors every year! It’s not surprising that the city’s municipal services have been feeling a strain under the new influx of tourists.

How Tourism Negatively Affected Locals

Tourism affects just about every town in its own ways, and it usually is a positive experience. In larger quantities, tourism becomes more of a problem than it does a perk. In Amsterdam, locals complained about these tourism-related issues:

• Increased Traffic. Imagine having your morning commute clogged up by tourists, and you’ll understand why many locals are irate with tourists while they go to work. 
• Rowdy Tourists. With its notorious red-light district and party scene, it’s not surprising that Amsterdam has a serious reputation for being a place to get wild. The problem is that locals often have to deal with rowdy tourists that trash the local area. Not fun!
• Changes In Atmosphere. One of the bigger problems locals have with Amsterdam’s booming tourism industry is the fact that it’s changed the overall culture and atmosphere of the city. Locals have regularly complained that they often felt like their city was “overrun” by the sheer numbers of tourists.
• Budget Problems. With more demand for nightlife comes higher prices in bars and restaurants. As one can expect, locals sometimes feel “priced out” of their own city. 
• Cleanliness Issues. A report showed that tourism also was a major contributor to pollution and trash left in Amsterdam’s city streets.

How Amsterdam Made Its Decision To Increase Prices

Amsterdam’s officials have made it clear that they don’t want to increase the number of hotels in the area, especially after complaints locals have lodged. The uptick in demand, plus the limited supply of hotels, naturally led to higher booking rates and an increase in prices.

It’s a classic case of supply and demand…at least on the surface. However, there’s more to the increased hotel prices than meets the eye. The fact is that Amsterdam has gotten so many complaints about the large numbers of tourists, officials are actively trying to make it hard for tourists to stay within city limits.

Does Amsterdam Hate Tourists?

Absolutely not! The people of Amsterdam are very friendly to tourists and have no personal problems with them. However, there’s truth to the phrase “too much of a good thing” here. It’s a matter of simply giving locals a sense of normalcy. 

If you go to Amsterdam, you shouldn’t expect to be met with aggression or vitriol. That’s just not the way people are in this city. Rather, the issue people have is that the spike in tourism just happens to be more of an inconvenience than anything else. 

The issue is better looked at this way: Amsterdam doesn’t hate tourists, but the city is feeling overwhelmed by the 17 million visitors it receives every year. It’s not a matter of hate; it’s a matter of keeping things in control and keeping things orderly. 

Tourism Policies That Might Affect Your Price

In order to avoid having serious issues with locals, officials had to make some tough decisions. The way they decided to work to keep the integrity of the city alive was to limit accommodations and “price out” tourists that can’t afford it. 

If you were thinking of heading to Amsterdam, you might want to know about these tourism policies before you go:

• You won’t find new hotel construction. Amsterdam has made it clear that they won’t allow new hotel construction projects anywhere near its city. The reason why is clear: they want to keep the city feeling like itself. 
• There is a 30-day annual AirBNB limit for hosts. Hotels might be too expensive, but don’t expect any sort of “rooming apps” to be much better. The city has imposed a 30-day maximum limit for AirBNB hosts. So, you probably won’t be getting a room this way at a cheap price. 
• The city also added a fee for tourists coming by cruise ship. To help fund endeavors to keep city streets clean, officials also added an €8 porting fee for tourists that get off the boat via their ports. 
• Extreme rowdiness also sparked new advisory campaigns. Due to the city’s notorious sex culture and bar life, police reports have spiked in recent years. The problems eventually culminated in the city launching an “Enjoy and Respect” campaign asking visitors to be respectful of others while out and about. 

Is The News All Bad?

Though it’s easy to see why Amsterdam is getting a reputation for pushing away tourists, there’s still some good news to hear. The city and the surrounding areas are currently working on new cruise ship ports as well as new airports. 

Areas surrounding the Amsterdam region are also starting to pick up on new tourist boom. If you take a look outside the city of Amsterdam, you will be able to book a room at a significantly lower price. The question is, are you willing to make the trek to Amsterdam itself?

Plan Your Trip Ahead

Like with any other international trip, the best way to save money on pricey hotel fees is to plan your trip ahead. The more you search around for a good deal, the better the chance of finding a great deal on accommodations. 

Amsterdam might have a reputation as being a pricey venue, but that reputation is only correct when it comes to the price of accommodations. As far as everything else goes, the money you’ll find yourself spending isn’t too far off from a typical day or night out elsewhere in the EU.