Hotels lie awake over VAT increase

Lower occupancy rate (-11.6%), especially in border regions (-15.6%)

The first quarter of 2026 shows significantly lower occupancy for the hotel sector of -11.6% and in the border regions of -15.6% compared to the same quarter last year, according to the member survey of Koninklijke Horeca Nederland (KHN). These declining figures combined with margins that have been under pressure for some time mean that the sector is awake to the VAT increase on lodging, which has risen from 9% to 21% this year.

Poll results

Hoteliers are currently absorbing a significant portion of the VAT increase. Our figures show that the average room rate excluding VAT fell by 2.5%, while based on inflation, an increase of around 3% is to be expected. Thus, the VAT increase from 9% to 21% is not fully passed on to the guest. On balance, an estimated 5.5% of this burden increase is borne by the hotelier.

Sustainability of innovation and investment capacity

This development puts further pressure on margins, which have been fragile for some time. Rabobank endorsed this picture on 9 April and reports a negative impact on hotel operations, with them expecting margins to fall by 2% to 3%. This raises questions about the sustainability of this situation and the impact on the industry's ability to innovate and invest.

Border regions

In the border regions, the impact of sharply higher prices is even more visible. The occupancy rate there fell by 15.6%. The Netherlands is losing ground as a destination because the price difference with surrounding countries is becoming too big. This is especially true for German visitors, as Germany has a VAT rate of 7% for overnight stays. At the same time, Dutch people are also adapting their behaviour: they are more often staying at home or, on the contrary, opting for a cheaper stay across the border. Our members see this development continuing and are increasingly concerned about the future.

Value of hotels for the Netherlands

With over 2,500 hotels, the hotel sector is an indispensable driver of the Dutch economy. The sector employs some 88,000 people and provides a constant flow of spending in other sectors. Hotel guests move into the city: they eat in restaurants, drink in cafés, shop locally and visit museums and other cultural facilities. Thus, hotels not only strengthen the economy, but also the vibrancy and attractiveness of cities and regions.

Research

The survey was conducted by Abbi Insight on behalf of Koninklijke Horeca Nederland. The poll was completed by 252 hoteliers; almost a quarter of our hotel members.