By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
After hearing a presentation from Tourism Windsor Essex Pelee Island (TWEPI) – the region’s tourism collaborative committed to enhancing the region’s economy and quality of life – at the May 5 meeting, Essex Council directed Administration to bring a report to Council considering adopting the proposed Municipal Accommodation Tax (MAT).
This report will be presented to Essex Council prior to August 31, 2025.
Scott Wilkins, TWEPI Board Member, approached Council, noting TWEPI hoped Essex would implement a MAT.
The proposed structure would be a County-wide initiative, with each municipality passing its own MAT by-law. The City of Windsor would be the collection agency. Funds collected in each municipality would stay in that municipality, minus administrative costs and TWEPI’s share.
TWEPI is currently making rounds to visit each of the seven municipal councils in Essex County.
A MAT “is a new revenue stream that does not come at a cost to your residents,” Gordon Orr, CEO of TWEPI, told Essex Council. He explained that back in 2017 the province enacted legislation granting municipalities the ability to implement a MAT.
The purpose of implementing a MAT is to directly benefit the municipality and to support local tourism growth and development, while providing municipalities with another revenue source to do so, Orr noted.
Benefits he pointed out include sustaining local tourism, economics, and revenue/seed funding for municipalities.
There are spending restrictions for the designated tourism entity and the municipal portion, Orr explained. Both parties must spend the collected funds to support tourism.
Orr said he introduced a County-wide initiative last May at a regional CAOs meeting.
He noted there are 73 municipalities across the province collecting a MAT currently. A year ago, there were 50.
He explained that at year end of 2024, the Town of Essex had 189 accommodation listings, including Short-Term Rentals (STRs) and hotels/motels. The average occupancy rate for those listings was 48%. The total estimated revenue for those was $4.9M.
When a MAT is applied to the total estimated revenue for the Town of Essex, it could generate $196,000 at 4% or $294,000 at 6%, Orr noted. That would be shared 50/50 between the Town and TWEPI.
In looking at all of Essex County with the total estimated revenue of $42M, a MAT at 4% would have generated $1.7M or $2.5M at 6%.
When TWEPI hosted meetings with local stakeholders last year, its reps heard some concerns, such as who would collect the funds and how to develop a MAT by-law.
TWEPI staff, Orr said, determined the City of Windsor would be the collection agency as a regional shared service, with the cost of the fulltime staff member taken off the top of the funds collected, shared 50/50. Once Windsor finds out how many municipalities in Essex County buy-in to the initiative, a meeting will be held to digest how much that will cost.
Windsor would also share its MAT by-law to assist County municipalities, which would have to pass their own by-law, deciding to apply the tax to hotels and short-term rentals, or just hotels.
Half of the funds collected through the MAT will remain in the individual municipality and not go to the County.
Orr explained the City of Windsor has collected a MAT since October 1, 2018. Funding for TWEPI has grown by 27% since 2019. The City increased its MAT rate from 4% to 6% on April 1. Orr was clear. The MAT program will not impact the funding TWEPI receives through the County of Essex. “It would be an additional revenue stream to both your municipality and for us at Tourism Windsor-Essex.”
Essex Free Press files noted that during 2025 Budget deliberations, TWEPI received $782,000 from the County of Essex as its annual contribution. It also receives funds from the City of Windsor.
Since 2018, Windsor has kept TWEPI’s base budget the same. This year, since the MAT is collecting more than the base budget, the base was eliminated, elevating that from the taxpayer. That would be the goal for the County, Orr said.
He asked Council to respond prior August 31, so it can plan a path forward.
In answering Councillor Rodney Hammond’s question on if the municipal share of the MAT could be used on by-law enforcement regarding tourism, Orr noted the funding is to support tourism and is up to the municipality to define that.
Councillor Joe Garon liked the idea of the MAT. Garon clarified with Orr that a municipality can do this on its own or partner with a tourism agency.
Councillor Kim Verbeek asked about municipalities choosing their own rate at either 4% or 6%, and how that could be a “logistical nightmare” across the County. Orr noted municipalities choose the rate, with the majority across the province having a 4% tax currently. If local municipalities choose different rates, it would be okay as the hotels or short-term rentals would apply them.
In answering Deputy Mayor Rob Shepley’s question on if there has been pushback from STR or hotel owners, Orr said there has not as the hotels in Windsor see the benefit.
Councillor Jason Matyi asked about opting-in and the possibility of opting-out if the Town decides it does not like participation in the program. Orr said it would be up to Council, but does not believe that it would come about.
Councillor Katie McGuire-Blais asked how the program could be monitored to ensure hotels and short-term rentals are implementing the tax. Toner explained there is software that gathers the number of listings, for instance. By-law enforcement could then look into what STRs should be bringing in.
McGuire-Blais would like the future report to look into that and how much effort or additional cost it will take to look into any issues that may arise.
Councillor Brad Allard also liked the idea. He suggested Essex look at a 5% MAT to be in a better position, as he said there are a lot of municipalities at four wanting to increase it.
In answering Hammond on possible retributions for hotels of STRs that do not charge the MAT, Orr noted that enforcement will be discussed. A MAT by-law could outline penalties.
In speaking of tourism statistics as part of the presentation, Jason Toner, VP Marketing & Communications, noted the organization hires firms annually to conduct a visitor economic impact report.
He said visitor volume in Windsor-Essex has increased since 2021. There were 5.6M visitors in 2023, compared to 4.4M in 2022 and 3.1M in 2021. Stats show visitors spending up 28% over $856M.
Of the visitors, 30% were international, with the majority coming from the US. Those visitors helped the local workforce by employing over 11,000 people, Toner noted.
In addition, the occupancy rate was just shy of 70%, with the average daily room rate $149.62.
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