Burlington council approves tax on hotel guests in effort to boost tourism

Insidehalton.com
July 22, 2022

Burlington city council has approved a new tax on stays in hotels and motels in an effort to boost tourism.

The city announced the creation of the Municipal Accommodation Tax (MAT) on Wednesday, July 13.

The four per cent charge will impact guests staying in Burlington hotels and motels and take effect on Oct. 1.

City staff point out this is a tax local hotels, motels and the Ontario Restaurant Hotel and Motel Association (ORHMA) are supportive of as it is expected to initially generate $450,000 to $700,000 in revenue each year to support new tourism initiatives, attract visitors, bolster current marketing efforts, monitor and evaluate tourism trends through research, and provide tourism related enhancements in the community.

“It’s not often we have businesses asking for a new tax -- but the Municipal Accommodation Tax will help our businesses in the tourism industry compete for visitors,” said Burlington Mayor Marianne Meed Ward.

“The funding will go directly toward initiatives that support tourism to Burlington, at a time they can use all the help they can get as one of the sectors hardest hit by the COVID-19 pandemic, and still recovering. The MAT will help to promote Burlington as a No. 1 destination spot for visitors, and also provide funding for city-sponsored initiatives. This is a major step forward for our tourism sector and the city and I wholeheartedly support it."

City staff said once collected, 50 per cent of the MAT funds will be provided to Tourism Burlington for enhanced tourism promotion and development.

The municipal portion of the funds (50 per cent) will be used for city initiatives that have some correlation to tourism such as recreation, culture, collaborative marketing, event hosting, way-finding and product development.

City staff said 40 municipalities are now collecting or are in the process of collecting MAT, including Oakville, Mississauga, Toronto, Vaughan, Waterloo and Prince Edward County.

The city is also partnering with the ORHMA to administer the new tax.