Municipal Accommodation Tax Feasibility
Municipal Accommodation Tax (MAT) is being explored as a visitor-paid fee on short-term stays (less than 30 days) at accommodations across Frontenac County. Engagement activities are now complete, and staff are preparing a findings and options report for County Council, expected in late March to mid-April 2026. Weekly project updates will be posted on this page.
Have questions? Accommodation businesses and hosts are encouraged to request a meeting or share questions by email at ecdev@frontenaccounty.ca
What we've heard (so far):
Input to date shows strong interest in ensuring any visitor-paid fee is clear, fair, and visibly reinvested to strengthen Frontenac County as a destination. Key themes include:
- Clear information is needed on what the Municipal Accommodation Tax (MAT) is, who pays it, and which accommodations it applies to.
- Fairness and consistent application are important. Many participants emphasized that any approach should apply evenly across accommodation types and operators.
- Transparency and industry involvement in oversight were repeatedly raised as conditions for trust and acceptance.
- Participants want to see local benefit tied to destination development, visitor experience, and tourism-facing assets (for example trails, signage/wayfinding, beaches and waterfront access, and boat launches).
- Some respondents raised concerns about competitiveness and price sensitivity, and emphasized careful design and clear communication.
For a full summary of the fall engagement, please review the report provided by Bannikin.
Common questions:
Who pays the fee, and what does it apply to?
If implemented, the visitor would pay the fee as part of the accommodation invoice for short-term stays (generally less than 30 days). It applies to accommodations such as hotels, motels, resorts, bed and breakfasts, and vacation rentals. It does not apply to other types of businesses such as restaurants or retail.
Is this a sales tax?
No. Ontario municipalities do not currently have authority to levy a general municipal sales tax. MAT is a visitor-paid fee applied to short-term accommodation stays.
How would funds be used?
If implemented, at least 50% of revenues would be directed to an eligible tourism entity dedicated to destination development and tourism marketing. Best practice for the municipal share is to invest in tourism-facing assets that support the visitor experience (for example trails, signage/wayfinding, beaches and waterfront access, and boat launches). Specific categories, programs, and projects would be determined through the governance and oversight approach.
Why is the County exploring this?
MAT is being explored as a tool to reinvest visitor contributions into destination development, strengthen the visitor experience, and support a resilient tourism economy across Frontenac County.
How will transparency and oversight be addressed?
Options under consideration include third-party administration for collection (to reduce administrative burden) and a Municipal Services Corporation (MSC) model to strengthen transparency and enable industry involvement in oversight of fund use and reporting on outcomes.
At this point, all options options are only under consideration - no decisions have been made about whether to implement a MAT or how to implement it.
