Collingwood Introduces New Tourism Tax to Support Destination Development
Collingwood’s vibrant downtown area will benefit from new tourism development funding through the Municipal Accommodation Tax[/caption]
Exciting changes are coming to Collingwood’s tourism landscape. The Town Council has approved a 4% Municipal Accommodation Tax (MAT) set to take effect on March 1, 2025. This new initiative aims to enhance Collingwood’s position as a premier tourist destination while ensuring sustainable tourism growth that benefits both visitors and residents.
What is the Municipal Accommodation Tax?
The MAT is a 4% tax that will apply to all short-term accommodations in Collingwood, including:
- Hotels and motels
- Bed & breakfasts
- Short-term rental properties
- Resort accommodations
Stays longer than 30 days and certain types of accommodations, such as hospital stays, student residences, and emergency shelters, will be exempt from this tax.
How Will the Revenue Be Used?
The tax revenue will be strategically allocated to support tourism development in Collingwood:
- 60% will go to a new not-for-profit tourism entity focused on promoting Collingwood as a destination
- 40% will stay with the municipality, with:
- 85% funding Tourism Master Plan initiatives
- 15% supporting related infrastructure and services
Impact on Local Tourism
This initiative aligns with Collingwood’s broader tourism strategy and is expected to generate significant benefits:
- Enhanced tourism marketing and promotion
- Improved visitor experiences and facilities
- Support for local events and festivals
- Investment in tourism infrastructure
- Sustainable tourism development
What Visitors Need to Know
Starting March 1, 2025, visitors booking accommodations in Collingwood will see the 4% MAT added to their bills. This aligns with similar taxes in neighboring communities like Blue Mountains, creating consistency across the region.
Business Owner Information
Accommodation providers should prepare for implementation by:
- Updating booking systems to include the new tax
- Training staff on collection procedures
- Attending upcoming information sessions (January 7 and 14, 2025)
- Reviewing reporting requirements
Looking Ahead
This new revenue stream will help Collingwood enhance its position as a premier tourist destination while ensuring sustainable growth that benefits the entire community. The tax is expected to generate between $1-2 million annually, providing substantial resources for tourism development.
Information Sessions
Want to learn more? The Town is hosting two information sessions:
- January 7, 2025, at 1:00 PM
- January 14, 2025, at 1:00 PM
Get Involved
For more information or to register for the information sessions, visit the Town of Collingwood’s website or contact the Economic Development Office.
Town of Collingwood MAT Information Page
Ontario Regulation 435/17: Transient Accommodation Tax
Collingwood Economic Development Office
Download the full Tourism Master Plan and Municipal Accommodation Tax Report (PDF)
