Municipal Accommodation Tax | Town of The Blue Mountains, ON

Project Update

On Monday, November 25, 2024, the Town of The Blue Mountains Council approved the implementation of a Municipal Accommodation Tax (MAT). The MAT comes into effect on Monday, January 6, 2025 at a rate of four percent (4%).

MAT Details

Project Overview

The Town of The Blue Mountains is currently completing a research project to review and evaluate the considerations and feasibility of implementing a Municipal Accommodation Tax (MAT).

To support the project, the Town engaged Bannikin Travel and Tourism to lead and facilitate the research and evaluation project, which includes the development of a Municipal Accommodation Tax Strategy. In addition, the Town engaged CBRE Tourism Consulting to conduct an Economic Impact Assessment related to the implementation of MAT.

The latest project update was presented to Council on July 6, 2024. The report and attachments are available in the project update section below. Following the direction of Council, the Town has started the process of developing a Tourism and Marketing Strategy to help guide and support tourism development. Further details regarding the Tourism and Marketing Strategy will be provided in mid-August.

Project Updates

Report FAF.24.134 was presented to Council on November 18, 2024 seeking Council approval of the Town Use of Municipal Accommodation Tax Funds Policy.
The Policy was developed based on recommendations from the Municipal Accommodation Tax research report conducted during the project's initial review and feasibility assessment phase.
The policy includes guidelines and details regarding how funds from the Town's portion of Municipal Accommodation Tax will be directed toward tourism-supportive initiatives and how the funds will be used in an accountable, transparent, and responsible manner.
Staff Report & Policy
Meeting Recording
On July 6, 2024, Council received staff report FAF.24.067, which included a detailed project update and an overview of the draft MAT By-law and MAT Use of Funds Policy. Through the report, Council directed staff to schedule a public meeting for Tuesday, September 10, 2024. Details regarding the public meeting will be advertised in mid-August.
In addition, Council also approves the Blue Mountain Village Association as the Town’s official Destination Marketing Organization and confirms that if Municipal Accommodation Tax is implemented, the Blue Mountain Village Association will be deemed as the eligible tourism entity that will receive a portion of the collected revenue based on a revenue sharing agreement between the Town and the Blue Mountain Village Association that will be brought forward to Council in a future staff report.
Council also approved a project budget at an upset limit of $80,000 to be temporarily funded through working capital and directs staff to finalize the request-for-proposal process by awarding the Tourism and Marketing Strategy Request-for-Proposal 2024-30-P-ADM contract to the successful bidder as determined through the formal evaluation process.
On June 26, 2023, Council received staff report FAF.24.004, which provided an update regarding the MAT project and work plan. The report provided a summary of the stakeholder consultation and public engagement process which included the Role of Tourism Survey, Accommodation Provider Survey, Accommodation Industry Table Talks and Key Stakeholder Interviews.
In addition, the report provided Council with an update on the work completed by Bannikin Travel and Tourism related to the development of a Municipal Accommodation Tax Strategy, and with an update on the work completed by CBRE Tourism Consulting related to the Economic Impact Assessment.
Staff Report
Municipal Accommodation Tax Strategy Report
Economic Impact Assessment Report
On June 26, 2023, Council received staff report FAF.23.092, which outlined the proposed project work plan that was used to review and gather information regarding Municipal Accommodation Tax. The report provided an overview of Municipal Accommodation Tax and the implementation of MAT across Ontario.
In addition, the report also requested input and direction from Council to proceed with further investigation to review Municipal Accommodation Tax, including community and industry stakeholder consultation and engagement.

Project Information

A Municipal Accommodation Tax is a tax that is collected on overnight accommodations booked for less than 30 days, which includes but is not limited to hotels, motels, bed and breakfasts and other short-term rentals. The tax is paid for by the guest and is collected by the accommodation provider through the booking or check-in/check-out process.
The funds collected through the tax are used to promote tourism and to support tourism-related activities and projects accessed by visitors and locals such as roads, transit, beaches, parks and natural areas, culture, and recreation.
The primary goal of the project is to develop a comprehensive report and strategy informed by feedback from residents, tourism businesses and operators and accommodation providers, that reviews and evaluates the feasibility and considerations of a Municipal Accommodations Tax. The report will also establish a strong understanding of the context, challenges, opportunities, as well as social and economic implications of implementing and administering a MAT.
The project will follow a community-based research approach, with several primary research activities, including a visitor-facing business and resident survey, an accommodation provider survey, key stakeholder interviews and accommodation industry table talks. Secondary research methods are also being used to explore and establish a strong understanding of the background and context for MAT in Ontario and across Canada to inform potential innovations and creative approaches to adopt in implementation.
The project is limited to the jurisdictional boundaries of the Town of The Blue Mountains, including the primary settlement areas of Thornbury, Clarksburg, and Craigleith. The project will result in a final report being presented to Town Council in January 2024, which will summarize the feedback gathered throughout the research process and include a detailed strategy and recommendations on potential next steps and considerations related to implementation.
It’s important to note that no decisions have been made regarding the implementation of MAT and that the purpose of this project is to understand the perspectives of the local tourism industry and residents to support Council in making a well-informed decision.
The project goal is to develop a comprehensive report and strategy informed by feedback from key stakeholders that reviews and evaluates the feasibility and considerations of a Municipal Accommodation Tax and outlines the process to implement and manage this. The final report, scheduled to be presented to Town Council in January 2024, will provide a detailed summary of the feedback gathered throughout the research process and include a detailed strategy and recommendations on potential next steps and considerations related to implementation.
Five key objectives have been identified toward achieving this goal:
1. To build awareness amongst stakeholders about the purpose, structure, and potential uses of a MAT within the context of the Town
2. To gather perspectives and feedback from accommodation providers, tourism organizations, and residents in the town to inform MAT structure, implementation, and future use.
3. To investigate, understand, and recommend viable and innovative MAT governance and potential revenue management model(s) to implement in collaboration with relevant partners.
4. To align, create, and take advantage of economies of scale across research and engagement activities, including with the separate but highly related MAT financial sizing project and the upcoming destination management plan.
5. To establish a strong understanding of the context, challenges, opportunities, as well as social and economic implications of implementing and administering a MAT.
Public Survey
The public and accommodation provider surveys regarding the Municipal Accommodation Tax are now closed. The results were presented to Council on January 15, 2024 through staff report FAF.24.004.

This research project is driven through feedback shared by the local tourism industry including accommodation providers, tourism operators and tourism-related businesses, as well as feedback from local residents.
Throughout the project, there will be opportunities to share your feedback and perspectives. The stakeholder engagement will be led by Bannikin with direct participation and on behalf of the Town of The Blue Mountains. The project team will be taking advantage of both virtual and in-person engagement opportunities across the project's research and engagement activities.
Key engagement activities include:
- The Role of Tourism Survey - The survey closed on Sunday, November 26, 2023.
- Accommodation Provider Survey: The survey closed on Sunday, November 26, 2023.
- Key informant interviews with up to 10 key informants identified by the Town
- Accommodation partner table talks: The table talks will be held in late November, with direct invitations sent directly to accommodation partners.