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Local funding now available to boost tourism

Municipal Accommodations Tax collects 4% on hotel room bills

Locally generated funding is now available to help businesses, groups and organizations enhance tourism. And it won’t cost city taxpayers a single cent.

Through a Municipal Accommodations Tax (MAT), funds are raised locally with a four per cent tax on hotel rooms in Timmins. Under provincial legislation, the MAT is permitted as long as the funds collected go back into the tourism industry.

A special committee within the Timmins Economic Development Corporation (TEDC) will decide which applicants will get funding. On Tuesday, July 27, the TEDC opened the application process. The announcement was made at a press conference held at the Timmins Museum: National Exhibition Centre.

“The Timmins Municipal Accommodations Tax Committee is pleased to announce that the applications process is now open,” said Noella Rinaldo, Director of Community Economic Development for the TEDC. “So, those organizations, profit and not-for-profit, who want to apply for any type of funding, the applications are available on the TEDC website under community development.”

Fred Gibbons, Chairman of the TEDC, said funds collected through the MAT tax will help build tourism in the city.

“The design of the program is very responsive to the strategy that Tourism Timmins has put together,” he explained. “It’s also something that, by design, is intended to appeal to all sectors — the private sector, non-profit sector, public sector and profit sector, and partnerships among the four groups.

“The ultimate objective is to try to attract more visitors to Timmins, having them stay longer and spend their money while they are here.”

Mayor George Pirie said the tax has been discussed since the start of the current council’s term and also by the previous council.

“I think this is the last major city in Northern Ontario to have this tax. Certainly, Thunder Bay, Sudbury, Sault Ste. Marie and North Bay already had it,” he said. “This council simply said, let’s get on with this.”

He emphasized the fact that municipal tax dollars are not going to be touched for tourism projects thanks to the MAT.

“It’s very important to understand there’s two parts to this tax,” Pirie said. “It is designated specifically for tourism activities.

“It’s really delightful, from my point of view, that these funds are coming from visitors from outside the City of Timmins. So, all the arguments that happen within council and the population of the city disappear. Because it doesn’t cost the taxpayer any money.

“So, you’re free to imagine the possibilities that are there without that ‘oh gee, who’s going to pay for that?’ We know exactly who’s going to pay for that. It will be the tourists who come here, who want to come here, and, hopefully, come here it bigger numbers to build those projects and expand those projects to make Timmins a better place.”

Organizers of the 2022 Canadian U18 Curling Championships are set to file an application for MAT funding.

“The Canadian Championship is a once in a lifetime event that Timmins has the opportunity to sponsor, said Steve Meunier, General Chair of the event. “We are applying for the MAT fund to help offset the costs of renting the entire McIntyre Arena for the week of curling.

“A minimum of 700 hotel rooms are required to accommodate the large crowds that this tournament brings, not including parents and coaches. Such large crowds also bring a boost to the local economy, including restaurants and retail.”

Hotel operators in Timmins are on board with the tax program.

“On behalf of the Timmins Hotel Association, given the tremendous impact that COVID-19 has had on the global tourism industry, we are supportive of the efforts by the TEDC to help local non-profit organizations develop, attract and grow unique experience that will ultimately widen the appeal of Timmins as a leisure, sporting and business travel destination,” said Daryl Gauthier, General Manager of Holiday Inn Express and Suites in Timmins. “One hundred per cent of the Municipal Accommodation Tax is collected by hotels and generated by overnight guests.

“Many local residents rely on employment opportunities created by a robust tourism community.”