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Toronto considering additional hotel tax to offset cost of FIFA World Cup matches

Toronto considering additional hotel tax to offset cost of FIFA World Cup matches

The City of Toronto plans to impose an additional tax on hotel rooms to offset the cost of FIFA World Cup matches in 2026.

In a report submitted to the council by the Executive Director, Chief Procurement Officer and Treasurer and Treasurer of FIFA World Cup 2026 Hosting to find the revenues to pay for the games, it was agreed that the Council Accommodation Tax will be increased from six per cent to 8.5 per cent. suggested.

Toronto estimates its share of hosting the elite international soccer competition will cost $380 million, an $80 million increase over the 2022 estimate.

The federal and state government will cover $201.4 million, so the city will be responsible for $178.6 million of the cost of hosting the games.

It was determined that $83.6 million of this revenue was obtained by the municipality through existing municipal resources, commercial rights sales, rental fees and in-kind contributions.

The proposed increase in the municipal lodging tax on hotels and short-term rentals is estimated to generate $56.6 million in revenue.

It will be valid between 1 June 2025 and 31 July 2026.

“The hotels are in pretty good shape. As you can imagine, all the rooms are booked, they’re going to do very well, and we’re asking them to support us and get a piece of that,” said Mayor Olivia Chow.

The Greater Toronto Hotel Association disagrees.

“The industry has not returned to pre-pandemic levels, so it is still in recovery mode. “We’re not as prepared as we were pre-COVID. So I would say we still have a lot of opportunity to get back to where we were pre-pandemic,” CEO Sara Anghel said.

However, the city report states that any potential impacts on accommodation operators are expected to be offset by increased room demand and related visitor spending before, during and after the World Cup.

The report will go before council for approval on November 4.

A city spokesman said hosting the FIFA World Cup in 2026 would bring “significant economic, cultural and social benefits” and create more than 3,500 jobs.

Toronto will host six games starting on June 12, 2026; these include the first FIFA World Cup men’s match to be held on Canadian soil and the opening match of the Canadian Men’s National Team. Games in Toronto will conclude with a 32-game qualifying round on July 2, 2026.

Vancouver will also host matches of the elite international football competition hosted by Canada along with the United States and Mexico.