Amsterdam is the capital city and most populous city of the Kingdom of the Netherlands. Its status as the Dutch capital is mandated by the Constitution of the Netherlands though it is not the seat of the Dutch government, which is The Hague. Amsterdam has a population of 831,279 within the city proper, 1,326,384 in the urban area and 1,599,737 in the metropolitan area. The city region has an approximate population of 2,431,000. The city is located in the province of North Holland in the west of the country, and is also North Holland's largest city. It comprises much of the northern part of the Randstad, one of the larger conurbations in Europe, with a population of approximately 7 million.
Amsterdam's name derives from Amstelredamme, indicative of the city's origin as a dam of the river Amstel. Originating as a small fishing village in the late 12th century, Amsterdam became one of the most important ports in the World during the Dutch Golden Age (17th century), a result of its innovative developments in trade. During that time, the city was the leading center for finance and diamonds. In the 19th and 20th centuries the city expanded, and many new neighbourhoods and suburbs were planned and built. The 17th-century canals of Amsterdam and the 19–20th century Defence Line of Amsterdam are on the UNESCO World Heritage List.
As the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered an alpha world city by the Globalization and World Cities (GaWC) study group. The city is also the cultural capital of the Netherlands. Many large Dutch institutions have their headquarters there, and seven of the world's 500 largest companies, including Philips and ING, are based in the city. In 2012, Amsterdam was ranked the second best city in which to live by the Economist Intelligence Unit (EIU) and 12th globally on quality of living for environment and infrastructure by Mercer . The city was previously ranked 3rd in innovation by 2thinknow in the Innovation Cities Index 2009.
Famous Amsterdam residents included Anne Frank the diarist, the artists Rembrandt van Rijn and Vincent van Gogh and the philosopher Baruch Spinoza.
The Amsterdam Stock Exchange, the oldest stock exchange in the world, is located in the city center. Amsterdam's main attractions, including its historic canals, the Rijksmuseum, the Van Gogh Museum, Stedelijk Museum, Hermitage Amsterdam, Anne Frank House, Amsterdam Museum, its red-light district, and its many cannabis coffee shops draw more than 5 million international visitors annually.
Amsterdam is one of the most popular tourist destinations in Europe, receiving more than 4.63 million international visitors annually, this is excluding the 16 million day trippers visiting the city every year. The number of visitors has been growing steadily over the past decade. This can be attributed to an increasing number of European visitors. Two thirds of the hotels are located in the city's centre. Hotels with 4 or 5 stars contribute 42% of the total beds available and 41% of the overnight stays in Amsterdam. The room occupation rate was 78% in 2006, up from 70% in 2005. The majority of tourists (74%) originate from Europe.
The largest group of non-European visitors come from the United States, accounting for 14% of the total. Certain years have a theme in Amsterdam to attract extra tourists. For example, the year 2006 was designated "Rembrandt 400", to celebrate the 400th birthday of Rembrandt van Rijn. Some hotels offer special arrangements or activities during these years. The average number of guests per year staying at the four campsites around the city range from 12,000 to 65,000.