Collingwood's AirBnB tax may be a tax on tourism businessesThe new tax is only new to this area, but it's been in Ontario since 2017 as an option available to municipalities to generate additional revenues to support tourism-related projects and activities, which is what Collingwood hopes to do. As is true for all taxation, however, it's difficult to be sure the money raised will reach its intended recipients.
Where will the money go
At least half the revenues generated must be allocated to a 3rd party - meaning some one other than the Town. Collingwood's plan is somewhat unique in that it will establish a non-profit to receive 60% of the tax revenue, which will then be administered by stakeholders from the tourism industry within the town. This sounds all well and good, but non-profits aren't free; they'll have operating expenses that will eat into that 60% and that's really only the beginning.
It's not just a tax on tourists
Collingwood passed a tourism master plan back in December of 2024, which already accounted for the revenues that would come from this tax. The premise behind this tax is that it's proceeds will directly benefit the tourism industry so, if you're a stakeholder in said industry, then you'd be forgiven for thinking that this money will come back around to you. The reality is likely that the tax on tourists will eat away a proportional amount from the revenues businesses would have otherwise received. If the cost of a rental or hotel room goes up by 4%, it's possible that renters and hotel owners may not see revenues rise by at least that amount - meaning that the tax is ultimately being paid by the businesses, and not the tourists.
Everything is already getting more expensive and with the threat of tariffs being imposed along with our weak Canadian dollar, this is hardly the time to add further burden to tourism-businesses. 4% may not seem like much, but it does add-up.
Got a question?
The new tax is only new to this area, but it's been in Ontario since 2017 as an option available to municipalities to generate additional revenues to support tourism-related projects and activities, which is what Collingwood hopes to do. As is true for all taxation, however, it's difficult to be sure the money raised will reach its intended recipients.
Where will the money go
At least half the revenues generated must be allocated to a 3rd party - meaning some one other than the Town. Collingwood's plan is somewhat unique in that it will establish a non-profit to receive 60% of the tax revenue, which will then be administered by stakeholders from the tourism industry within the town. This sounds all well and good, but non-profits aren't free; they'll have operating expenses that will eat into that 60% and that's really only the beginning.
It's not just a tax on tourists
Collingwood passed a tourism master plan back in December of 2024, which already accounted for the revenues that would come from this tax. The premise behind this tax is that it's proceeds will directly benefit the tourism industry so, if you're a stakeholder in said industry, then you'd be forgiven for thinking that this money will come back around to you. The reality is likely that the tax on tourists will eat away a proportional amount from the revenues businesses would have otherwise received. If the cost of a rental or hotel room goes up by 4%, it's possible that renters and hotel owners may not see revenues rise by at least that amount - meaning that the tax is ultimately being paid by the businesses, and not the tourists.
Everything is already getting more expensive and with the threat of tariffs being imposed along with our weak Canadian dollar, this is hardly the time to add further burden to tourism-businesses. 4% may not seem like much, but it does add-up.