Clarington is following other lakeshore Durham municipalities by implementing a Municipal Accommodation Tax (MAT) for visitors on short‑term overnight accommodations as of July 1.
While, Whitby, for example, charges a 4 per cent tax, Clarington says it will charge it at 5 per cent.
In 2022, Clarington had closed its Tourism Information Centre (see below).
By law, MAT revenues must directly support local tourism development, including:
- Tourism promotion and marketing
- Tourism infrastructure improvements
- Place-making initiatives
It was not made clear if the Tourism Information Centre will be revived.
MAT projected revenues
Clarington is growing and its population is expected to reach 221,000 by 2051. The announcement linked local population growth with new possibilities for mainly visitor-led recreation and tourism. “From out-of-town sports tournaments to world-class racetrack events, visitors already come to Clarington from far and wide. Through the collection of a MAT, these opportunities can be reinvested back into the community to benefit everyone.”
Clarington has some 288 hotel and motel rooms. Based on different MAT rates and occupancy levels, estimated annual revenue is:
Tax on stays of up to 29 days
MAT only applies to short-term stays under 29 days. Most migrant and contract workers book monthly stays, which are exempt under provincial legislation.
Additionally, rooms provided by employers to employees in premises operated by the employer (e.g. farm worker housing) are typically exempt from MAT by-laws.
The MAT will be collected by accommodation providers and remitted to the municipality through the Ontario Restaurant, Hotel and Motel Association (ORHMA), which will act as the municipality’s collection agent.
Training and support will be provided to accommodation providers ahead of implementation to ensure a clear and consistent reporting and remittance process, the announcement said.