Amsterdam’s council has helpfully explained that it only wants rich tourists in future

Luckily rich people never take cocaine. Image: Getty.

Amsterdam has a new resolution for 2017: care less. Between Christmas and the New Year – when everyone was still scrambling to work out which way was up and who shoved Uncle Richard’s homemade mince pies behind the radiator – the city council announced that it was upping the city’s tourist tax. This will reduce the number of cheap hostels in the city centre, while having little impact on the more expensive hotels.

Then, channelling the spirit of bah-humbug and DGAF, the council explained that they were doing this in an attempt to get rid of the budget tourists. And the stag parties. And pretty much anyone whose travel budget doesn’t extend to more than €50 a night. It’s a bold move: attack to defend, accuse yourself of elitism before committed carpers like myself have even logged onto Twitter.

Amsterdam alderman Udo Kock explained to Dutch newspaper Parool that 28 per cent of tourists visiting the city book into budget hotels – and “that has to be reduced”. The city’s plan to reduce the number of budget bookings involves slashing tourist tax breaks and changing the way tourist tax is calculated.

Right now tourists pay 5 per cent of the cost of their room when they check out – a system that the under-paid and much beleaguered hotel concierges just lurve explaining to hungover guests. In the future a split fee might be introduced; that’d mean the guest paid a fixed amount per night, plus a percentage of the hotel bill.

Kock and co claim that scrapping tax deductibles like agency fees while increasing the tourist tax will raise an extra €4m for the city in 2017. This extra money will presumably be spent washing the pleb-ooze off park benches and training a flock of iPhone carrying bluebirds to escort all the “quality” tourists to their “quality” hotels.

It gets better: in 2018, the increased tourist tax will bring in €9m, and encourage tourists to spread out across the city. This is a kind of divide and conquer style, where every borough gets a Minion-themed stag party, rather than letting the city centre hoard them all in some kind of weird, central, easily accessible, tourist district.

Anti-tourist rumblings first made headlines back in 2014, when high profile Amsterdam residents began complaining about the volume of visitors invading the city. Rijksmuseum chief Wim Pijbes claimed that tourists were causing the city to become “full”, “dirty” and “sleazy”, a description that travel companies are probably using verbatim for promotional purposes.

Following Pijbes’ complaints a number of Dutch politicians also expressed concerns over tourist numbers. A campaign was launched to encourage people to visit different parts of the city; a group of residents petitioned the mayor to crack down on disruptive tourists; the city put a stop to new hotel development; and a scheme was launched to calm tourists down via the universally soothing practise of sporadically flashing lights.


This latest attempt to dissuade low-income tourists from polluting visiting Amsterdam is the result of a familiar, yet grotesquely flawed, belief that wealthy tourists spend their holidays quietly, unobtrusively, spending money. Meanwhile the rank and file swim around in the city gutters – regurgitating cigarette butts into letter boxes, dousing everything with bodily fluids, and demanding to know why the local casino doesn’t take Love To Shop vouchers.

Evidence of this thinking can already be seen in ongoing attempts to gentrify the Amsterdam Red Light District. Despite being one of the city’s most commercially viable and popular areas, the Red Light District has remained remarkably accessible to all kinds of businesses. Independent brothels operated next to chain burger bars and eco-friendly sex shops while family-held businesses are commonplace. In 2008, however, the city council announced they would “clean-up” the Red Light District and began replacing the famous brothels and coffee shops with designer boutiques.

Set aside accusations of gentrification, landgrabs, offensive stereotyping and coded language: it doesn’t make sense for a city that makes so much money from the tourism industry to start pulling up the drawbridge in pursuit of a comparatively small pay-off.

As with most outwardly baffling, apparently self-sabotaging, schemes, though some of the blame for Amsterdam city council’s latest announcement can be attributed to Brexit. Yes, Amsterdam is swimming in tourist euros but it’s also attractive to international investors. With financial companies pulling out of post-Brexit London, a plethora of corporate tax breaks, an established international community and a “progressive spirit”, forecasters are already predicting that Amsterdam could become Europe’s next financial centre.

All of this means that 2017 really is looking like a win-win scenario for Amsterdam city council’s aversion to budget tourism. If Amsterdam does become the next go-to place for tax-dodging multinational companies the lost budget tourist euros will have little impact on the city’s income. And if the city is undercut by established tax havens like Luxembourg or Geneva (concerns have been raised over Dutch salary caps) at least the council will have freed up more space for the wealthy tourists to park.

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Businesses need less office and retail space than ever. So what does this mean for cities?

Boarded up shops in Quebec City. Image: Getty.

As policymakers develop scenarios for Brexit, researchers speculate about its impact on knowledge-intensive business services. There is some suggestion that higher performing cities and regions will face significant structural changes.

Financial services in particular are expected to face up to £38bn in losses, putting over 65,000 jobs at risk. London is likely to see the back of large finance firms – or at least, sizable components of them – as they seek alternatives for their office functions. Indeed, Goldman Sachs has informed its employees of impending relocation, JP Morgan has purchased office space in Dublin’s docklands, and banks are considering geographical dispersion rather concentration at a specific location.

Depending on the type of business, some high-order service firms will behave differently. After all, depreciation of sterling against the euro can be an opportunity for firms seeking to take advantage of London’s relative affordability and its highly qualified labour. Still, it is difficult to predict how knowledge-intensive sectors will behave in aggregate.

Strategies other than relocation are feasible. Faced with economic uncertainty, knowledge-intensive businesses in the UK may accelerate the current trend of reducing office space, of encouraging employees to work from a variety of locations, and of employing them on short-term contracts or project-based work. Although this type of work arrangement has been steadily rising, it is only now beginning to affect the core workforce.

In Canada – also facing uncertainty as NAFTA is up-ended – companies are digitising work processes and virtualising workspace. The benefits are threefold: shifting to flexible workspaces can reduce real-estate costs; be attractive to millennial workers who balk at sitting in an office all day; and reduces tension between contractual and permanent staff, since the distinction cannot be read off their location in an office. While in Canada these shifts are usually portrayed as positive, a mark of keeping up with the times, the same changes can also reflect a grimmer reality.  

These changes have been made possible by the rise in mobile communication technologies. Whereas physical presence in an office has historically been key to communication, coordination and team monitoring, these ends can now be achieved without real-estate. Of course, offices – now places to meet rather than places to perform the substance of consulting, writing and analysing – remain necessary. But they can be down-sized, with workers performing many tasks at home, in cafés, in co-working spaces or on the move. This shifts the cost of workspace from employer to employee, without affecting the capacity to oversee, access information, communicate and coordinate.

What does this mean for UK cities? The extent to which such structural shifts could be beneficial or detrimental is dependent upon the ability of local governments to manage the situation.


This entails understanding the changes companies are making and thinking through their consequences: it is still assumed, by planners and in many urban bylaws and regulations, that buildings have specific uses, that economic activity occurs in specific neighbourhoods and clusters, and that this can be understood and regulated. But as increasing numbers of workers perform their economic activities across the city and along its transport networks, new concepts are needed to understand how the economy permeates cities, how ubiquitous economic activity can be coordinated with other city functions, such as housing, public space, transport, entertainment, and culture; and, crucially, how it can translate into revenue for local governments, who by-and-large rely on property taxes.

It’s worth noting that changes in the role of real-estate are also endemic in the retail sector, as shopping shifts on-line, and as many physical stores downsize or close. While top flight office and retail space may remain attractive as a symbolic façade, the ensuing surplus of Class B (older, less well located) facilities may kill off town-centres.

On the other hand, it could provide new settings within which artists and creators, evicted from their decaying nineteenth century industrial spaces (now transformed into expensive lofts), can engage in their imaginative and innovative pursuits. Other types of creative and knowledge work can also be encouraged to use this space collectively to counter isolation and precarity as they move from project to project.

Planners and policymakers should take stock of these changes – not merely reacting to them as they arise, but rethinking the assumptions that govern how they believe economic activity interacts with, and shapes, cities. Brexit and other fomenters of economic uncertainty exacerbate these trends, which reduce fixed costs for employers, but which also shift costs and uncertainty on to employees and cities.

But those who manage and study cities need to think through what these changes will mean for urban spaces. As the display, coordination and supervision functions enabled by real-estate – and, by extension, by city neighbourhoods – Increasingly transfer on-line, it’s worth asking: what roles do fixed locations now play in the knowledge economy?

Filipa Pajević is a PhD student at the School of Urban Planning, McGill University, researching the spatial underpinnings of mobile knowledge. She tweets as @filipouris. Richard Shearmur is currently director of the School, and has published extensively on the geography of innovation and on location in the urban economy.