Research and Statistics Economic Development Department Fact sheet number 4a October 2008 Amsterdam remains a popular tourist destination For the past few years, tourism in Amsterdam has been rapidly growing. In 2007, the city attracted a record number of visitors. This growth can be largely attributed to the growth in domestic tourism. The portion of domestic arrivals in total arrivals has risen from 13% to 20% since 2003. Amsterdam s tourist sector has a turnover of almost 5 billion in 2007, while the number of jobs has risen to over 48,000. Amsterdam s 4.9 million tourist arrivals in 2007 were good for 8.8 million bed nights in tourist accommodations. The tourist arrivals to Amsterdam have increased by around 4% in relation to 2006 (+204,000). The tourist arrivals rose by 6% in 2006, and 9% in both 2004 and 2005. At 3% Tourist arrivals and bed nights in Amsterdam, 2002-2007 x 1,000,000 9 8 7 6 5 4 3 2 1 0 2002 tourist arrivals 2003 2004 2005 2006 2007 bed nights source: CBS (+257,000), the growth in the number of nights in 2007 was less vigorous than in preceding years. 1 This can be attributed to the fact that guests of Amsterdam hotels now stay shorter: an average of 1.82 nights. Back in 2003, the length of stay still averaged 1.91 nights. This declining trend applies to all hotels in the Netherlands incidentally: the national average length of stay is currently 1.78 nights, which is also lower than in 2003 (1.90). Fewer British and American visitors to Amsterdam The Amsterdam tourist market consists largely of Western Europeans (36%), Dutch (20%) and North-Americans (14%). In 2007, the arrivals from Western Europe and North-America declined for the first time since 2003. This applied mainly to the British ( 6%), tourists from the USA ( 7%) and Canadians ( 8%). Although the worsening British economy and the mortgage crisis in the USA are partly to blame, this decline can be largely attributed to the strength of the Euro. 2 However, the decline was amply compensated by considerable growth of domestic arrivals (+26%).
Tourist arrivals to Amsterdam by country of origin, 2007 4% 6% 2% 20% rest of Europa United ingdom USA 2 12% Spain Germany America (excl. USA) Asia France Africa and Oceania Italy 19% 17% 4% 5% 5% 6% source : CBS The domestic arrivals rose to almost one million in 2007, double the amount in 2003. In fact, the number of Dutch arrivals to Amsterdam has overtaken the British (937,000) and American (597,000) during the past five years. Amsterdam s increased popularity among domestic visitors can probably be attributed to the favourable economic conditions in the Netherlands, as well as the population s rising interest in short-stay hotel trips. 3 Emergence of new tourist markets Other rapidly growing tourist markets are Eastern and Southern Europeans, Brazilians and Chinese. Although tourism from India is also on the rise, this market (17,000) is still relatively small. The Eastern Europeans include many Russians and Poles; two markets which have more than doubled during the past five years. Amsterdam is also increasingly popular in Spain (rising by three quarters since 2003). Possible explanations for this growth include the expansion in the numbers of low-cost connections and the increasing numbers of Spaniards taking holidays abroad. Other rapidly growing markets are Brazil and China. The number of Brazilian tourists visiting Amsterdam has almost trebled since 2005. The number of tourists from China increased by 38% in 2007. The growth of Asian economies, but also those of Brazil and Russia, has prompted increased foreign travel among the inhabitants of the so-called BRIC countries (Brazil, Russia, India and China), whose destinations include Amsterdam. Although these emerging tourist markets are still relatively small, the Amsterdam visitors profile is evidently changing. Tourist growth during the first quarter in particular The year 2007 began with a spectacular rise in the numbers of arrivals, primarily the Dutch Growth of tourist arrivals in Amsterdam by country of origin, 2007 (2006=100%) % 30 25 20 15 10 5 0 5 10 15 20 Spain rest of Europa Africa and Oceania America (excl. USA) Asia France Italy Germany United ingdom USA source : CBS
Arrivals, bed nights and length of stay of tourists and the average bed occupancy in Amsterdam hotels, 2007 average bed arrivals bed nights length of stay occupancy (%) 1st quarter 1,086,070 1,904,867 1.75 56 2nd quarter 1,287,030 2,362,070 1.84 68 3rd quarter 1,299,858 2,494,598 1.92 70 4th quarter 1,190,603 2,082,891 1.75 59 total 4,863,562 8,844,426 1.82 63 3 source: CBS Hotel guests in Amsterdam per month, 2006-2007 500 x 1,000 450 400 350 300 250 January February 2006 2007 March April May June July August September October November December source: CBS (+40%) and Spaniards (+27%). A total of 12% more tourists visited the city during the first three months of 2007 than during the same period of 2006. However, growth later declined to an average of 2% per quarter. Amsterdam s tourism traditionally peaks during the third quarter, usually in August. Not only are visitors numbers generally the largest in August, they also stay for an average of at least two nights, which is longer than at any other time of year. Despite the fact that the annual arrivals total for 2007 was higher than 2006, slightly fewer tourists visited the city in August 2007. Around three-quarters of all hotel beds are nevertheless occupied each August, which is 50% higher than in a month like January. Amsterdam hotels fully booked during peak season 4 As of 1 July 2008, Amsterdam boasts 357 hotels with a total capacity of almost 20,000 rooms and 43,000 beds. Relatively speaking, the luxury accommodation segment (4 & 5-star hotels) has the largest capacity: over 40% of all the city s rooms and beds. At the same time, however, tourists lodging at the luxury hotels tend to stay the shortest (1.6 nights) which means that their average bed occupancy is slightly lower than that of other hotel categories. There is, however, a clear two-way split in the luxury hotel segment. Four-star hotels are generally busier than five-star establishments. They not only enjoy higher bed occupancy 5, but also high room occupancy. 6 The three-star hotels, which account for a third of Amsterdam s bed and room capacities, are particularly popular and are usually pretty full during the peak season. As one in three of the city s tourists opts for these hotels and stays for an average of two nights, their bed occupancy may rise to some 80% in the busiest months (April & August) while room occupancy is around 80% annually. Budget accommodation (0 to 2 stars) is also busy during the peak season. 7 While these establishments jointly account for the least capacity (27% of all beds), guests do tend to stay longer there than in other hotels; averaging over two nights, particularly during the spring and summer months.
4 A comparison with other European cities showed that only London (83%) had a higher room occupancy rate than Amsterdam in 2007. 8 With a view to reducing the hotel market shortage, the municipality began drawing up new hotel policy in 2007. This is expected to bring about the addition of a further 9,000 rooms between now and 2015. Amsterdam s architecture and ambience appreciated most Amsterdam is the world s ninth most popular city. 9 Amsterdam s good accessibility renders it attractive to significant numbers of visitors from neighbouring regions (Flanders and Nordrhein- Westfalen) and other European cities (London, Paris, Madrid and Barcelona). 10 Furthermore, the city attracts visitors from areas with high economic growth and substantial purchasing power (southern Germany, northern Italy, California, New York, Texas, Illinois and Florida). Visitors come primarily for cultural attractions (38%), ambience (26%) and museums (24%), but also to shop (11%) or visit a coffeeshop (7%). The recreational itinerary of the average tourist is as follows: a walk through the city, shopping, eating out, round trips on the canals and visits to two museums. Business travellers also have recreational activities: walking, canal round trips, museum visits, eating out and shopping. Amsterdam s architecture (39%) and its ambience (33%) are its most appreciated features. However, the inhabitants of Amsterdam also received appreciation for their tolerance and command of foreign languages. Litter (11%) and overcrowding (10%) were deemed the city s least attractive aspects. Two in five tourists take a round trip on the canals A round trip on the canals is by far Amsterdam s most popular tourist attraction. Over 40% of all tourists staying in the city said they had taken such a trip. 11 The number of round trips taken rises in proportion to the growth of tourism. Over three million people took a boat trip on Amsterdam s canals in 2007, which is 3% more than in 2006. Amsterdam s other most popular attractions are Amsterdam ArenA (2.1 mln), the Van Gogh Museum (1.7 mln), Artis Zoo (1.2 mln) and the Anne Frank House (1 mln). More international conferences Amsterdam has regained its position among the top ten international conference cities, climbing from twelfth place in 2006 to ninth in 2007. The number of international conferences held in Amsterdam rose from 67 in 2006 to 82 in 2007. This places the Dutch capital in a position to vie with European counterparts, such as Budapest, Lisbon and Madrid. The leaders are Vienna (154), Berlin (123) and Paris (115) according to the ICCA rankings, which are recognised as the authority in the conference and convention sector. 12 Employment growth in the hotel & catering and recreational sectors As of 1 January 2008, the Amsterdam tourism sector comprised 36,500 major jobs (12 hours or more a week) and 11,700 minor jobs (less than 12 hours a week). The numbers of FTE s increased by 5% (in relation to an average of +2%) and PTE s by 9% (in relation to an average of 5%). 13 Total employees (total FTE and PTE) working in the tourist sector in Amsterdam, 1 January 1998-2008 x 1,000 24 22 20 18 16 14 12 10 8 6 4 2 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 catering accommodation establishments recreation transport rest * Travel organisations, tourist goods. source: O+S
The employment growth occurred primarily in the hotel & catering (restaurants and cafés) and recreational (culture and amusement) segments, whereas other segments have engaged relatively few new employees. Slower tourism growth in Amsterdam than in the rest of the Netherlands It is quite remarkable that while the numbers of tourists visiting Amsterdam have been setting new annual records since 2005, the growth rate (+4%) remains below the national average (+7%) for the second year in succession. One possible explanation for this shortfall is Amsterdam s shortage of hotel capacity. Dutch hotels received a total of 19.2 million guests in 2007. The numbers of hotel guests in municipalities in the surrounding area of Amsterdam 14 also saw more vigorous growth (+18%) in 2007 than Amsterdam itself. In addition to the 4.9 million tourists who spend the night in Amsterdam, there are another 1.4 million who stay at a hotel in one of the municipalities in the region. As was the case in Amsterdam, the regional growth could be largely attributed to domestic tourists (+22%). 5
6 Notes 1 The annual numbers of overnight stays grew by 8% in 2004 and 2006; and by 5% in 2005. Source: CBS. 2 Tourism in Perspective, NBTC, January 2008. 3 Future vision of holiday market 2007-2015, NBTC-NIPO Research. 4 The average bed occupancy in all Amsterdam hotels throughout the year 2007 was 63% (Source: CBS). In August, however, it rose to 74%. The average room occupancy in all hotels totalled 76%, while it amounted to 80% in three, four and five-star hotels (Source: O+S). According to Deloitte, which carries out research into hotels with a three-, four- and five-star rating, the average room occupancy was 81% throughout 2007, and 87% and 89% in August and September respectively. 5 According to the CBS, over 70% of beds in four-star hotels are occupied in August, and 64% in five-star hotels. 6 According to the O+S poll, the average room occupancy in 2007 was 82% in four-star hotels, and 72% in five-star hotels. 7 Over three quarters of all beds were occupied in July and August 2007. Source: CBS. 8 HotelBenchmark Survey by Deloitte, 2007. 9 The City Brand Index was compiled by the US Government advisor Simon Anholt in 2007. The 40 cities included in the index were assessed on the basis of familiarity, cleanliness, economic, security, lifestyle and quality of life 10 Amsterdam Visitors Profile, March 2008. Source: ATCB. 11 Amsterdam Visitors Profile, March 2008, Amsterdam Tourism & Convention Board. This survey was performed during the period from 2006 to 2007, and is based on interviews with over 6,000 visitors to Amsterdam. 12 The other leading organisation that registers international conferences and conventions globally is the UIA. However, this organisation has yet to publish figures for 2007. The UIA registered 117 international conferences and conventions in Amsterdam in 2006, which was 19% more than in 2005. This meant that Amsterdam rose one place, to ninth on the 2006 world rankings for conference cities. The difference between the numbers of conferences registered by the ICCA en UIA is due to their separate definitions of an international conference. For instance, the ICCA does not register one-off events, while the UIA does. 13 According to the CBS definition, all jobs comprising 12 hours or more a week are considered FTE s, while those comprising less than 12 hours are viewed as PTE s. 14 Haarlemmermeer, Aalsmeer, Uithoorn, Amstelveen, Ouder-Amstel, Diemen, Waterland, Oostzaan, Landsmeer, Purmerend, Edam-Volendam, Zeevang, Beemster, Graft-De Rijp. Together with Amsterdam, these municipalities form the Greater Amsterdam region. Sources consulted Amsterdam Tourism & Convention Board (ATCB). Netherlands Board of Tourism and Conventions (NBTC). Statistics Netherlands (CBS). Colophon Weesperstraat 79 1018 VN Amsterdam Telephone +31 (0)20 527 9527 Fax +31 (0)20 527 9595 algemeen@os.amsterdam.nl www.os.amsterdam.nl Weesperstraat 89 1018 VN Amsterdam Telephone +31 (0)20 552 3205 Fax +31 (0)20 552 2860 info@ez.amsterdam.nl www.ez.amsterdam.nl Author: T. Fedorova