The Greater Toronto Hotel Association has expressed concerns about the impact of a recent hotel tax increase implemented for Toronto’s upcoming FIFA World Cup matches on tourism and travel to the city beyond the tournament. The Municipal Accommodation Tax (MAT) saw a 2.5 per cent rise in June, with the city anticipating generating $56.6 million by the following July.
Sara Anghel, the President and CEO of the Greater Toronto Hotel Association (GTHA), highlighted that while the increase may seem modest, it could deter potential visitors and organizers of other large events in the city. Anghel emphasized that escalating taxes could diminish Toronto’s competitiveness compared to rival cities in securing conventions and similar gatherings.
In response to hosting six World Cup games, the city council approved a temporary hike in the MAT to 8.5 per cent, effective from June 1 until July 31, 2026. Anghel acknowledged the city’s need to cover expenses for the games but stressed the substantial nature of the increase. She expressed apprehension that the elevated tax rate, combined with existing challenges like traffic congestion and safety concerns, might make Toronto less appealing for hosting events.
While Vancouver has also implemented a 2.5 per cent tax on short-term accommodations for its FIFA games, Anghel noted that U.S. and Mexican host cities have opted for corporate sponsorships and alternative strategies instead. With a successful playoff season for the Toronto Blue Jays boosting hotel revenues, Anghel suggested monitoring the funds raised and potentially investing any surplus into tourism initiatives to promote the city during the tournament.
City spokesperson Elise von Scheel mentioned plans to evaluate the MAT’s performance and consider adjustments or reallocations if revenues exceed projections. Despite the potential rise in hotel prices, it is unlikely to deter the anticipated influx of World Cup spectators next June and July, according to Destination Toronto CEO Andrew Weir. Weir emphasized the positive impact of these visitors on various sectors and highlighted the long-term benefits of showcasing Toronto during the event, potentially attracting more global tourists in the future.
