If projections are realized, Huntsville’s proposed Municipal Accommodation Tax (MAT) will give Huntsville a big advantage for promoting tourism to this area.
Town staff and members of the Huntsville Hotel and Motel Association presented an early model for collection and distribution of the proposed tax to Huntsville’s General Committee on September 26.
In his report to committee, Scott Ovell, the Town’s Economic Development Coordinator, outlined what the recommended model would look like: local accommodators would collect a four per cent MAT, 70 per cent of which would be given to a separate tourism entity with the Town retaining 30 per cent. The tax would likely apply to the room portion of revenue only, and for the time-being would apply only to area hotels and motels. Short-term vacation rental properties, like those listed on Airbnb, would be added at a later date. Small housekeeping and American Plan (all-inclusive) resorts like Clyffe House and Cedar Grove Lodge would be exempt from the tax at least until similar resorts in Muskoka’s other municipalities are subject to a similar tax.
Ovell said that there are many factors that would affect how much revenue the tax generates, but early estimates are a total of $750,000 per year.
The tourism entity, which must be non-profit under provincial legislation, would use the funds to promote tourism and would have “autonomous decision making abilities related to setting budgets, prioritizing objectives and funding allocations,” according to the report.
The Town would also use its portion of the funds for tourism and economic development, which could include a wide range of initiatives like community branding, wayfinding signage, active transportation, marketing for workforce attraction, experience enhancements at Muskoka Heritage Place, and sporting and special events. The tourism and marketing services currently provided by the Town, which in 2018 amounted to $142,000—$82,000 for marketing, events and tourism services through the Huntsville/Lake of Bays Chamber of Commerce, a $25,000 licensing fee for the Ironman 70.3, $30,000 for the Ontario 55+ Winter Games, and $5,000 fee for service to the Port Sydney/Utterson Area Chamber of Commerce—could be paid for using MAT revenue as well. In future, events like the Ironman 70.3 could apply to the tourism entity instead of the Town for funding.
“We have local organizations that are doing really great things with limited resources and have put us on the map,” said Ovell. “What we started talking about was coming up with a made-in-Huntsville solution.” He thanked the Huntsville Hotel and Motel Association, the Huntsville/Lake of Bays Chamber of Commerce, the Downtown Huntsville BIA, and Town staff for their help through the process and in “coming up with a solution that I think is innovative and ultimately works for Huntsville.”
The next step would be creation of a working group to hammer out details like terms of reference for the tourism entity, review of a transfer payment agreement, and recommendations for the composition of its board, at the same time as the Town of Huntsville prepares a bylaw. The working group would comprise one representative from each of the Huntsville/Lake of Bays Chamber of Commerce, the Downtown Huntsville BIA, Huntsville Town Council (mayor), the Huntsville Hotel and Motel Association (Jesse Hamilton), and Explorers’ Edge along with support from the Town’s Director of Corporate Services, Director of Development Services, and Economic Development Officer.
The targeted implementation date for the tax is April 1, 2019.
Jesse Hamilton, General Manager at Deerhurst Resort, speaking on behalf of the Huntsville Hotel and Motel Association said that hotel operators appreciated the opportunity to be part of the process, “and that our voice was heard not solely as a conduit to a tax but as a means to making sure that that tax was spent in a way that is most impactful positively in driving tourists to the town of Huntsville.”
Hamilton acknowledged that local accommodators will incur costs to collect the tax, making it a sensitive topic that resulted in spirited debate, but “that is something that the hotel and motel operators are willing to take on for what we see as being the greater good of the town. It also can drive more guests not just through our doors but into restaurants and into the retail space.”
Committee members appeared to be excited about the idea. Councillor Bob Stone said, “This is the greatest economic development tool Huntsville has seen in decades.”
Mayor Scott Aitchison added, “It’s important for us to reflect on what we are about to do. We are about to make one of the biggest investments in tourism we’ve ever made in this community, and it will be an ongoing thing and it won’t come off the backs of the property taxpayer… This is a message that we are very serious about tourism, about economic development and we’re going to make some major investments in growing the economic development opportunities for tourism operators in this community.” He congratulated everyone involved for a job well done.
Councillor Jonathan Wiebe wondered why Muskoka Tourism was excluded from the working group while Explorers’ Edge, the public face of Regional Tourism Organization 12 which encompasses Muskoka, Parry Sound, Almaguin Highlands and Algonquin Park, was included.
Ovell replied that there is flexibility in who is involved, but that Explorers’ Edge was included because “I think it was only about eight years ago that they were formed so a lot of this is talking to them and having the expertise of the things that they went through when they started down the road, particularly terms of reference and getting the organization set up properly.”
Councillor Det Schumacher also noted that there was no representation from the resort owner community, to which Ovell said that the mandate of the working group would be to get the organization set up while the composition of the board, which the Huntsville Hotel and Motel Association has suggested should be at least 51 per cent hoteliers, would be addressed through the bylaw and terms of reference.
In a follow-up conversation with Doppler, Huntsville/Lake of Bays Chamber of Commerce executive director, Kelly Haywood, said that she hoped to be included in the working group, and that she would be advocating for a different model for housekeeping resorts, as was suggested.
“I am really pleased that the municipality and the accommodations sector have come to an agreement to develop the Municipal Accommodation Tax. The work of the chamber with respect to tourism services will continue and I look forward to working with this new entity to further the achievements that we have made… a $750,000 budget annually is a game-changer,” said Haywood. “I am just really happy to see more invested in tourism in our community.”
General Committee unanimously approved the recommendation to create a Municipal Accommodation Tax bylaw and establish an associated working group. The resolution will go before council at its next meeting for ratification.
See a copy of the full report here (PDF).
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More taxes. I think the tourists are gauged pretty good already and don’t need an added made up tax. Its tough enough now to squeeze a little money away for a vacation what with all the taxes and high cost of living and now you want to squeeze some more. Power and Greed. That’s all I see. There is already money for advertising the town and a committee. I don’t like it. Money Grab in my opinion. I can hardly afford to live in Huntsville and I certainly could not afford to vacation here. Way too expensive.
Beware … I note that the town will use their portion of the TAX to allow the organizations already being supported by the town.. so in reality the town is NOT increasing their marketing and support of the Tourism industry. This is a tax grab by the town — remember when you vote who promoted this. This is not the end, check out Niagara Falls. I just spent two days and will not return as on check out I had paid HST, Resort Fee 4, DNF 4 for a total of 29.98 per day and they are looking at an additional hotel tax. They can get this fee as I also observed in two days at least 75 – 100 buses each day. I am shocked that this was supported by the smaller hotels and motels (another cost) as it does not apply to any other area of Muskoka. Great for motels just outside our boundary and the largest accommodator in Muskoka Airbnb.
Sorry, Dawn, but I must be having a senior moment. In some portions of the article, the Town and the tourism entity seem to be somewhat blurred. And who will have a Board? If it’s the Town (unlikely), then why would they have tourism entities on their working group (and eventual Board)? If it’s the tourism entity, why would they want any government direction (as the MAT is their baby)?
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In any case, the Town seems to want to treat this windfall as a deposit to their slush fund. I would suggest that some of the wish-list-items do not seem to be tourism-directed; and that the Premier will, doubtless, wish to have his kick at the can; his relevant power notwithstanding. The province already extorts a tourism tax, so the MAT may not be welcome to either Mr. Ford or Joe Tourist.
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I would also respectfully suggest that the working group is missing the two brightest stars in the Town firmament: the CAO and Ms. Rebecca Francis.
Yes Peggy,
I am still reeling from the “discount sale & almost giveaway” of some of the land assets of Huntsville you may be referring to:
Waterloo Centre, with its magnificent setting, could have been a World Class Stroke Recovery Centre which in turn could have ‘saved’ our Hospital thru revenue & attraction of Medical Professionals.
The waterfront property, buildings & paying tenant comprising Huntsville’s Heritage Train Station given away for $2.00!
Will never get over observing these unbelievable, short-sighted actions & trying to be heard.
I`m curious about the “resort tax” (not to be confused with the proposed MAT tax) which is already showing up in Canada and the US at places I would not classify as “resorts”! In Fla. where we stay it is $16 US per day . How many local motels and hotels are presently adding this resort tax? So, I take it the MAT would be added on to this! I would rather see “taxes” included in the price per day quote instead of getting a shock when paying your bill!!!
All tourists to Huntsville benefit from access to a fine hospital. I would like to see part of an accommodation tax going to the Hospital Foundation.
We have travelled a lot in retirement and have paid a municipal accommodation tax almost everywhere we go in the USA and Canada, including Vancouver, Peterborough, and our most recent visit to Ottawa where we paid a 4% tax. I can show you the bill. This type of tax helps to make these places worth visiting. Congratulations and thanks to all involved in bringing Huntsville into the modern world of tourism.
Clearly this council should be doing nothing new like this tourism tax during an election , I am not trusting the process or the Deerhurst Involvement since they traditionally get lots of the attention. After the new council is sworn in they can take this off the shelf and see what it is all about.. We have a Chamber of Commerce , we have a BIA and we have Muskoka Tourism and we have town staff marketing budgets and we clearly need to know why we introduce another layer of budgeted advertising . I cannot say that more money for another marketing board will solve the issue. Adding more costs to our visiting public and an entire new set of paperwork might not be necessary . The new council might have a fresh approach to making this town prosper and it does not include millions in spending for the downtown or the Ball diamond. It might not include the discount sale and almost giveaway of land assets that the current Mayor thought we did not need anymore . The people want this council to stop pushing new by laws and stop pushing a new Official Plan and stop spending money we do not have. Can someone tell me who at the town is responsibility for the generous giveaway of our downtown core for four days ?? Who negotiated that deal. It is so frustrating that this council is not respecting the new Restricted Council Act during this election . You can search the act as written in June 2016 it is titled the Municipal Election Modernization Act and it refers to the intentions of the lame duck act . The Hallmark Christmas Movie has a few more days and we did not get any money for providing our beautiful downtown as a location. I do not think these people should be doing any negotiating anything for the taxpayers for the next few months …..
I pay such tax once, then make a note to avoid the area. Often results in flying to destination and avoid multiple ground taxes at motels. Niagara Falls has new tax @ 10% ,plus parking, some Wi Fi fees , Will avoid in future
So Huntsville would rise to 17% to start &(maybe future carbon tax?)