City council is poised to ponder the implementation of municipal accommodation tax for overnight stays at hotels, bed and breakfasts and shared accommodations such as Airbnb.
A staff report recommending the four per cent charge is heading to council’s committee of the whole meeting on Feb. 7 for discussion. Any decision made that night will be forwarded to council’s official meeting at the end of the month for potential ratification.
If ultimately approved, funds raised through the fee – estimated at between $500,000 and $950,000 annually –would be used to support a variety of new tourism initiatives, visitor attraction and infrastructure improvements in the community.
“By re-investing money earned through tourism back into the industry locally we can support more tourism-related infrastructure and programs that make visitor experiences even better,” said Cathy Masterson, manager of tourism and destination development, in a news release. “The accommodation tax will also help local businesses recover from the long-term negative economic impacts of the COVID-19 pandemic by supporting events, festivals, sports, restaurants, retail and other services, without an increase to property taxes.”
In collaboration with the Guelph Chamber of Commerce (CoC), city staff is recommending the tax come into effect on Sept. 1. The city and CoC have signed an agreement that would see the business organization help implement the new tax.
If set at four per cent as proposed, the tax is expected to add between $4 and $7 per night to the cost of overnight accommodations in the city.
Several other municipalities already have an accommodation tax in place, including Cambridge, Kitchener, Waterloo, Kingston, Barrie and Toronto.
The deadline to register as a delegate or make a written submission for the committee of the whole meeting is Feb. 4 at 10 a.m. To register, visit guelph.ca/delegation, call 519-837-5603 or email [email protected].
