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The uptick will be in place from June 1, 2025 to July 31, 2026, and is expected to generate an additional $56.6 million for the city. Staff have estimated it will cost $380 million to stage six matches in º£½ÇÉçÇø¹ÙÍøfor the 104-game World Cup, which is being co-hosted by 16 cities in the U.S., Canada and Mexico. º£½ÇÉçÇø¹ÙÍøis scheduled to host its matches between June 12 and July 2, 2026.ÌýÌý

The hotel industry had criticized the proposed increase, arguing it would make º£½ÇÉçÇø¹ÙÍøa less attractive destination, particularly for convention organizers that are a major contributor to the tourist economy. According to city staff, the increase will add aboutÌý$5.70 to the average room cost of $228 per night.Ìý

In a letter to the city this month, Tony Elenis, president of the Ontario Restaurant Hotel and Motel Association, called the measure “unwarranted.”

He noted the temporary increase for the World Cup follows a permanent raise in the accommodation tax implemented last year, from four per cent to six per cent, and warned it would have “long term negative implications for the hospitality sector.”Ìý

The city’s chief financial officer Stephen Conforti said Wednesday that in consultations over the plan, the industry had requested that hotels be able to display the tax increase separately on visitors’ bills, with a message noting the measure is temporary and will be used to pay for the tournament.Ìý

Coun. Shelley Carroll (Ward 17, Don Valley North), who chairs Toronto’s World Cup subcommittee, said the city was on board with the plan. “They asked for that and they’re getting that,” she told council.

Taking questions from reporters Wednesday morning before the vote, Mayor Olivia Chow defended the tax increase, saying it would ensure hotels are “paying their share and sharing their wealth.”

She said hotels are “doing very well,” particularly with Taylor Swift bringing her Eras Tour to town this week, and will get another boost during the World Cup.Ìý

Chow rejected the idea that increasing the hotel tax would drive visitors away. “º£½ÇÉçÇø¹ÙÍøwill always be competitive because we have a vibrant city,” she said.Ìý

Of the more than one quarter of a billion dollars º£½ÇÉçÇø¹ÙÍøhas estimated the World Cup games will cost, the provincial and federal governments have together committed a little more than $200 million. That has left the city responsible for the remaining $178 million. It has identified funding for almost $84 million, which leaves a gap of about $95 million.Ìý

The increase in the hotel tax is expected to make up more than half the shortfall, and staff say they’re working on measures to pay for the rest.Ìý

Correction - Nov. 14, 2024

This article was edited from a previous version that misstated the estimated cost to put on the tournament’sÌýmatches slated for Toronto. It’s $380 million, not $280 million.ÌýIn addition, a tax increase approved by council for hotels and short terms rentals will add about $5.70 to the average room cost of $228 per night, not $3.42 as previously reported. An incorrect figure was provided by the city of Toronto.

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