Toronto hotel tax bump: 'We need to make sure they share the wealth,' Chow says as Swifties send room rates skyrocketing
Toronto Mayor Olivia Chow says the incredible influx of fans into the city for Taylor Swift’s six-concert stay shows that Toronto’s hotel industry can afford to pay a little more in tax when major events come to town.
“They are doing very well. Taylor Swift is in town. Wow. It’s now costing a lot of money to stay in hotel,” Chow said. “So I would imagine that they are doing fine at this point.”
Chow’s comments come as City Council considers implementing a temporary hike in the Municipal Accommodation Tax (MAT) on hotels. A report being considered by council Wednesday recommends hiking the tax from 6 per cent to 8.5 per cent from June 1, 2025 to July 31, 2026 when Toronto hosts six FIFA World Cup games.
Asked to respond to criticism that the hike is being rushed without enough consideration, Chow disagreed that the move is being made too quickly.
“There’s nothing rushed about it. It’s been talked about in terms of the hotels paying their share and sharing their wealth,” she said.
In a letter to council, the Greater Toronto Hotel Association pointed out that the city hiked the MAT from four per cent to six per cent in 2023, “making Toronto one of the most expensive cities” in its class to host business events.
“The proposed MAT hike threatens jobs in the hospitality sector and beyond. It’s not just hotels: thousands of small businesses that rely on tourism—such as restaurants, retailers, and cultural institutions—will also suffer,” the group wrote. “This could lead to significant job losses at a time when we should be focusing on economic growth.”
The city uses revenue from the Municipal Accommodation Tax to support Destination Toronto, which helps promote the city’s tourism industry, as well as other core city services such as roads and transit.
Chow said the additional revenue will help the municipality “promote this beautiful city of ours” and to encourage more conferences and events to come here.
“And we believe that when the World Cup comes to the city, the hotels will also do very well, just as they’re doing well now during the Taylor Swift concerts,” Chow said.
Asked why the city didn’t implement the hike in time to take advantage of the influx of tens of thousands of Swift fans into the city, Chow said they were responding to the industry saying it was still recovering from the pandemic.
“They’re doing well, but we need to make sure that they share their wealth, and Toronto will always be competitive, because we have a vibrant city,” Chow said. “We have a downtown that is just buzzing.”
Some downtown hotels are charging more than double or even triple their usual rates during Swift’s concerts, with some rooms going for around $2,000 per night.
Hike expected to help cover FIFA World Cup costs
Toronto is eyeing the temporary hike to the hotel tax as it looks to generate extra revenue to cover the estimated $380 million price tag of hosting the FIFA games in 2026 and meeting FIFA’s requirements. While much of that cost is already being covered by provincial and federal funds, as well as commercial rights, rental fees and other municipal sources, Toronto still has to come up with around $95.1 million.
The 14-month increase to the tax is expected to generate an additional $56.6 million in revenue, according to a staff report.
“It is anticipated that any potential impacts on hospitality operators will be largely offset by increased room demand and related visitor spending in the lead up, during, and following the FWC26, as well as substantial future benefits due to Toronto’s global visibility gained from hosting the FWC26,” the report notes.
The hotel association pointed out that the games are being held during “peak season” for many business events, meaning those events may not come to Toronto that year.
“We urge the City to engage with our industry to develop alternative solutions that address fiscal needs without compromising our competitive edge,” the group said.
CTVNews.ca Top Stories
'She will not be missed': Trump on Freeland's departure from cabinet
As Canadians watched a day of considerable political turmoil for Prime Minister Justin Trudeau and his government given the sudden departure of Chrystia Freeland on Monday, it appears that U.S. president-elect Donald Trump was also watching it unfold.
BREAKING Canadian government to make border security announcement today: sources
The federal government will make an announcement on new border security measures today, CTV News has learned.
Canada's inflation rate down a tick to 1.9% in November
Inflation edged down slightly to 1.9 per cent in November as price growth continued to stabilize in Canada.
The Canada Post strike is over, but it will take time to get back to normal, says spokesperson
Canada Post workers are back on the job after a gruelling four-week strike that halted deliveries across the county, but it could take time before operations are back to normal.
Transit riders work together to rescue scared cat from underneath TTC streetcar
A group of TTC riders banded together to rescue a woman's cat from underneath a streetcar in downtown Toronto, saving one of its nine lives.
Trudeau considering his options as leader after Freeland quits cabinet, sources say
Chrystia Freeland, Canada's finance minister, said in an explosive letter published Monday morning that she will quit cabinet. Here's what happened on Monday, Dec. 16.
Teacher and a teenage student killed in a shooting at a Christian school in Wisconsin
A 15-year-old student killed a teacher and another teenager with a handgun Monday at a Christian school in Wisconsin, terrifying classmates including a second grader who made the 911 call that sent dozens of police officers rushing to the small school just a week before its Christmas break.
A bomb killed a Russian general in Moscow. A Ukrainian official says secret service was behind it
A senior Russian general was killed Tuesday by a bomb hidden in a scooter outside his apartment building in Moscow, a day after Ukraine’s security service leveled criminal charges against him. A Ukrainian official said the service carried out the attack.
Tom Cruise gets a top U.S navy honour for boosting the military with his screen roles
Tom Cruise was awarded the U.S. navy's top civilian honour on Tuesday for 'outstanding contributions to the Navy and the Marine Corps' with 'Top Gun' and other films.