Amsterdam Scraps Tourist Ban, Raises Visitor Tax to Highest in Europe

Amsterdam's newly formed coalition government has officially abandoned plans to ban international visitors from the city's famous coffeeshops, opting instead to implement Europe's highest tourist tax.

The decision marks a significant reversal from proposals floated over the past two years that would have restricted coffeeshop access to Dutch residents only. City officials had argued the ban would reduce cannabis tourism's impact on local neighborhoods and quality of life.

"The coalition chose a different path," said a spokesperson for the Amsterdam city council. Rather than closing doors to foreigners, the city will instead extract more revenue from the millions of visitors who come specifically to purchase legal cannabis.

The Numbers

Amsterdam's new tourist tax will become the steepest in Europe, though exact rates haven't been finalized. The levy applies to hotel stays and will disproportionately affect the estimated 3 million tourists who visit Amsterdam annually for its cannabis culture.

The city currently operates around 170 licensed coffeeshops, down from nearly 300 two decades ago. These establishments generate significant economic activity—not just from direct sales, but from related hospitality, accommodation, and tourism spending.

Policy experts suggest the tax approach reflects Amsterdam's recognition that cannabis tourism, despite its complications, remains a substantial revenue driver. "They're acknowledging the reality that this industry isn't going away," said Martin Jelsma, coordinator of the Drugs & Democracy programme at the Transnational Institute in Amsterdam.

A Global Contrast

The decision puts Amsterdam at odds with broader European trends. Several Dutch border cities, including Maastricht and Breda, have maintained strict residency requirements for coffeeshop access to limit cross-border cannabis tourism from Belgium and Germany.

Meanwhile, as legalization expands in North America, traditional cannabis tourism destinations face new competition. Colorado and California have established robust recreational markets, while Canada has created a nationwide legal framework. Thailand recently became Asia's first country to decriminalize cannabis, though it has since walked back some reforms.

Amsterdam's choice to double down on international cannabis tourism—albeit at a higher price point—suggests city leaders believe their unique cultural cachet remains irreplaceable. The Dutch coffeeshop system, which has operated in a legal gray area since the 1970s, still attracts visitors despite decades of availability and the model's inherent contradictions.

What's Next

The coalition's decision doesn't resolve all tensions around Amsterdam's cannabis policy. Coffeeshops still operate under the "gedoogbeleid" or tolerance policy—they can sell cannabis but cannot legally source it, creating a backdoor supply chain that remains technically illegal.

Dutch national government experiments with regulated cannabis cultivation have proceeded slowly. A pilot program allowing ten municipalities to test legal supply chains has faced repeated delays, with full implementation not expected until 2025 at the earliest.

For now, Amsterdam appears committed to maintaining its status as the world's premier cannabis tourism destination, even as it tries to manage the crowds through economic rather than legal barriers. Whether higher taxes will meaningfully reduce visitor numbers or simply generate more revenue remains unclear.

The city council is expected to finalize tax rates and implementation timelines in the coming months.

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This article is based on original reporting by hightimes.com.