Strengthening Vaughan’s thriving tourism industry

April 2, 2019 11:00 a.m.
Tourism remains an important local economic driver
 
The City of Vaughan approved a dedicated, accountable and transparent Municipal Accommodation Tax (MAT) to support the City’s thriving tourism industry.
 
The growing tourism industry in Vaughan contributed $300 million to the City’s gross domestic product (GDP) in 2018 and employs nearly 12,000 people. The city’s globally-competitive tourism sector continues to attract world-class investments including the recent announcement that Vaughan will be home to the world’s first-ever indoor Cirque du Soleil CREACTIVE family entertainment centre.
 
The City completed a market assessment of the MAT to determine potential revenues from hotel/motel and short-term accommodation sources. The assessment concluded that the City could generate $3.3 million annually and growing, subject to economic conditions.  In Vaughan, 50 per cent of revenue collected from MAT will be used to fund tourism marketing efforts in the city. The remaining 50 per cent will be allocated for city-building initiatives.
 
The new revenue stream is applied to purchases of accommodations at hotels, motels, and bed and breakfasts across the city. The MAT became effective April 1. MAT is only paid by visitors making accommodation bookings for a continuous period of 29 nights or less. Vaughan has set the rate at four per cent, consistent with other jurisdictions in Ontario. In total, 16 municipalities have implemented the MAT. In the Greater Toronto Area, MAT by-laws have been passed in cities such as Toronto, Mississauga, Markham and Oakville.
 
The City is further exploring how this revenue tool would apply to short-term rental accommodations, like Airbnb. The City held a series of public consultation meetings for residents to provide input on what the types of rules and regulations the City should consider for short-term rentals. Should Council approve a regulatory regime for short-term rentals in the future, including online home-sharing platforms such as Airbnb, the four per cent MAT would also apply to these types of transient accommodations.   
 
Supporting local businesses and workers employed in the important tourism sector is in line with the Council-approved 2018-2022 Term of Council Service Excellence Strategic Plan. Of note, this includes a commitment to ensure that Vaughan continues to be the place to be for investment and economic prosperity.
 
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