The Blue Mountains council has approved a policy that will see proceeds from a new Municipal Accommodation Tax (MAT) used to support tourism and tourism-related initiatives.
At its committee of the whole meeting on Nov. 18, council unanimously approved a staff report that recommended that the proceeds from the new MAT measure be used to support tourism-related projects.
Council has approved a MAT to come into effect in the town on Jan. 6, 2025. When it is implemented, the MAT of four per cent will be levied by the municipality and collected and remitted to the town by accommodation businesses including hotels/motels, short-term accommodations, bed and breakfasts and commercial rental units. The tax would only be added to overnight stays fewer than 30 nights.
Revenue from the MAT will be split between the town and the Blue Mountain Village Association to take on this role.
The town’s portion of the proceeds from the new tax can be used at council’s discretion. Tim Hendry, the town’s manager of communications and economic development, suggested in a report to council that revenue from the MAT be directed towards tourism-related projects in an effort to be “clear and transparent” about how the money will be used. Hendry said, although council can use MAT revenue for whatever it chooses, best practice across the province is to use the revenue to support tourism.
In his report, Hendry suggested the following five guiding principles for the MAT money:
1. To support investment into tourism-related infrastructure to help more effectively manage tourism;
2. To support projects and initiatives that result in measurable improvements to town services that enhance and improves the management of tourism and visitor experiences;
3. To pursue the goals and implement recommendations as outlined in the town’s tourism and economic development strategies, as amended from time to time;
4. To support the creation of tourism product development to bring new and innovative products, experiences, and services to the Town of The Blue Mountains tourism market;
5. To support the promotion of the Town of The Blue Mountains as a leading destination for tourism, leisure and business travel with an emphasis on promoting overnight stays.
Hendry said, if council approved his recommendation, staff’s next step in the process would be to develop evaluation criteria for how projects and initiatives will be selected and approved for future funding.
Although council ultimately voted 7-0 in favour of the staff recommendation, that approval came after an attempt to amend the recommendation to make affordable/attainable housing the top priority for the MAT funds.
“I really do feel affordable housing should be at the top of the list,” said Councillor Paula Hope.
In response, Hendry said affordable housing initiatives could be covered by the evaluation criteria to be developed to implement the proposed policy.
“We can try and capture (affordable housing),” he said.
Other members of council said they weren’t comfortable with setting specific priorities for the MAT money, seeing as council already had the authority to use the money for whatever project(s) it chose.
“The policy already allows for our discretion,” said Mayor Andrea Matrosovs. “It doesn’t say we need to be identifying top priorities.”
An amendment to the resolution to name affordable/attainable housing the top priority for the MAT money was defeated in a 4-3 vote with Matrosovs, Deputy Mayor Peter Bordignon and councillors Gail Ardiel and Shawn McKinlay opposed. The original resolution subsequently passed in a unanimous vote.
