Toronto’s Temporary Hotel Tax Hike for FIFA World Cup Sparks Tourism Concerns
A temporary hike in Toronto’s hotel tax—introduced to help fund the city’s role in the 2026 FIFA World Cup—has some in the tourism industry worried it could drive visitors away.
Since June 1, the city’s Municipal Accommodation Tax (MAT) rose by 2.5 per cent, bringing the total to 8.5 per cent. The measure is expected to generate $56.6 million by July 2026 to offset hosting costs for six FIFA matches.
But Sara Anghel, president and CEO of the Greater Toronto Hotel Association (GTHA), says the increase could hurt Toronto’s competitiveness in attracting conventions and other large-scale events.
“The more we increase our taxes, the less competitive we’re going to be against other cities,” she told CBC Toronto, noting that the tax was already high before the World Cup levy.
Anghel warned that when combined with ongoing urban issues like congestion and safety concerns, the higher tax could make Toronto a tougher sell for event organizers.
By comparison, Vancouver introduced a new 2.5 per cent tax on short-term accommodations for its seven FIFA games, while U.S. and Mexican host cities are relying instead on corporate sponsorships and local partnerships.
Despite the concerns, Anghel believes Toronto’s hotels are currently performing well—boosted by a strong summer season and the Toronto Blue Jays’ playoff run—and could reach the city’s funding target sooner than anticipated. She urged officials to reinvest any surplus into marketing and tourism initiatives that would benefit the city beyond the tournament.
City spokesperson Elise von Scheel confirmed staff are monitoring MAT revenues and may adjust allocations “through future variance reports or budget processes” depending on how collections perform.
On the flip side, Destination Toronto CEO Andrew Weir said the tournament will bring major benefits, noting that World Cup visitors will “take in games, restaurants, and attractions throughout the city.” He also expects a lasting global boost to Toronto’s image.
“Anybody around the world watching the World Cup is watching Toronto,” he said. “It’s a chance for our city to shine on a global stage.”
FIFA is expected to release match schedules in December, after which Toronto will ramp up international tourism promotions in markets whose national teams are playing in the city.
