by Jen Mallia
Last updated: 12:10 PM ET, Tue October 14, 2025
The Greater Toronto Hotel Association is raising questions about the temporary tax hike the city introduced to help pay for FIFA Men’s World Cup hosting costs.
The 2.5 percent hike brings the municipal accommodations tax (MAT) on hotel rooms to 8.5 percent. The steeper tax rate has been charged since June 1, 2025 and will continue until July 31, 2026, almost a month after the Toronto games of the World Cup conclude.
The increase was projected to raise $56.6 million, but with low vacancy rates and high room rates, Sara Anghel, president and CEO of the Greater Toronto Hotel Association (GTHA) wonders if that amount will be raised before the end of July next year.
Anghel, who also sits on the City of Toronto’s FIFA advisory committee, told CBC News that she plans to ask the city to track what’s been earned so far. If the city raises the money it needs early, she would like to see the excess invested into tourism initiatives that will promote the city during the tournament.
The city isn’t ruling out the possibility. "Staff continue to monitor the performance of the MAT and should any overperformance occur beyond initial projections, staff may recommend appropriate adjustments or budget allocations through future variance reports or budget processes in consultation with the Mayor, City Council and in consideration of potential [FIFA] requirements and the tourism sector,"city spokesperson Elise von Scheel told CBC.
Regardless of an “overperformance,” in the meantime, the GHTA has concerns that the additional tax will serve as a deterrent for visitors to the city, particularly large meetings and conventions. “If you add in some of the challenges we face in the city: gridlock, congestion, community safety concerns. … All those factors then make Toronto less competitive,” Anghel said.
Vancouver has also introduced an increased short term accommodation tax to help offset the cost of hosting World Cup games in a city where hotel costs are already quite high according to CTV News, whereas American host cities have sought corporate sponsorships to pay for the games.
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