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To ensure the financial strength of Tourism North Bay and support the City of North Bay's investments in tourism assets, North Bay City Council will address a recommendation to approve a new five-year deal centred on the Municipal Accommodation Tax (MAT).
Tourism North Bay's income is primarily drawn from the MAT, a four per cent fee added to the bills of guests of local hotels by the City of North Bay and earmarked for the tourism industry.
Council will vote on the matter during its regular meeting on Tuesday, March 26. The agreement between the City and Tourism North Bay (TNB) will "ensure continued marketing to attract visitors and encourage a longer stay or repeat visits," according to a staff report.
In September 2018, the council of the day adopted a four per cent tax on accommodations in North Bay and soon after a four-year agreement took effect between the City of North Bay and the Tourism North Bay Association. According to the report, "The implementation of the Municipal Accommodation Tax has created new revenues to promote tourism in North Bay and leverage capital investment and development."
The MAT was implemented in 2019 and has garnered $4.1 million in revenue, with $1.6 million or 40 per cent transferred to the City’s MAT reserve and $2.5
million or 60 per cent transferred to TNB. Council has the authority to approve funding from reserves to associated capital projects, as needed.
The City also draws $40,000 from the MAT reserve annually to support local tourism infrastructure through TNB's Tourism Infrastructure Fund (TIF), an application-based program to support private sector tourism assets.
See also: Hotel tax yields nearly $1 million in 2019
And: Council looking at options to spend Municipal Accommodation Tax
Since February 2023, when the initial agreement expired, the proponents have been operating under the original terms. "All activities conducted by Tourism North Bay Association are required to fulfill the core program mandate of acting as the official destination marketing organization for North Bay including promoting tourism assets and serving as a resource for the industry. Tourism North Bay’s goal is to attract visitors and encourage longer stays and repeat visits."
See: Weather causing tourism struggles this winter
This year, the Northern Ontario Tourism Summit will be hosted by Tourism North Bay in partnership with Nature and Outdoor Tourism Ontario and Destination Northern Ontario.
See related: Interactive digital kiosks launched by Tourism North Bay
And: New tourism magazine expecting to be a tourism lure
The City of North Bay's website points out the MAT is not a tax on local businesses. The MAT applies to an accommodation sold for a continuous period of fewer than 30 days in a hotel, motel, lodge, inn, bed and breakfast, dwelling unit or any place an accommodation is provided. The tax is applied to the accommodation charge only and not to other fees such as valet parking, laundry service or continental breakfast. The MAT must be identified as a separate item or charge on each bill, receipt or invoice.
