Sleepless nights in the hotel industry: VAT increase has major impact on investment and jobs 

Today, Koninklijke Horeca Nederland (KHN) is handing over the magazine 'Sleepless nights - the consequences of 21% VAT' to the Lower House. In the magazine, entrepreneurs from hotels, holiday parks and B&Bs show themselves what impact the proposed VAT increase from 9% to 21% on lodging will have on their business, their employees and the quality of life in their region. 

VAT increase hits the whole economy

The hospitality sector does more than receive guests: it creates jobs, stimulates local spending and contributes to social cohesion. Thanks to these entrepreneurs, families can make memories, schoolchildren go on camps and tourists enjoy the Netherlands and its culture. They keep restaurants, cafés, local shops and cultural facilities alive. 

Marijke Vuik, Chairman KHN: "These entrepreneurs make the Netherlands hospitable and attractive. They are a hugely important link in our society, they create connection. In the magazine, a number of entrepreneurs talk about what it means concretely if guests stay away, jobs disappear and investments are delayed." 

The implications for entrepreneurs and regions

The VAT increase will lead to higher prices for accommodation, making tourists more likely to opt for cheaper alternatives abroad. This means loss of turnover, investment space, employment and social amenities in the region. 

Among entrepreneurs, there are clear signals of urgency. 

Angelique Joosten of Recreation Park de Leistert: "To invest, we need good business results. Such a VAT increase depresses our results enormously. It touches on sustainability ambitions that will now kick in at many companies, but also the vitality of the region." 

Patrick Kerkhoven of WIN Hotels: "The rising costs and VAT increase are going to weigh heavily on our revenue model and cost us at least 40%. As a result of these successive increases, we will complete ongoing investments, but then impose an investment freeze." 

The figures at a glance

• Number of hotels: 3,842 
• Annual hotel industry turnover: €8.6 billion 
• Employees: 88,000 
• Up to 30% fewer overnight stays 
• Expected lower spending by foreign guests: €826 million 
• Thousands of jobs disappear in hospitality, transport, retail and leisure sectors