The Town of Petawawa has decided to impose a new municipal accommodation tax (MAT) that will appear on hotel bills beginning in the new year.
The MAT is being adopted by five hotels in Petawawa, which will charge an additional three per cent on guests' bills.
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The purpose of the tax is to generate additional money for local recreation and tourism-based initiatives.
"Our hotels right now are at 80 per cent capacity," said Petawawa Mayor Gary Serviss.
"The Town of Petawawa is growing, and we are increasing our festivals, concerts and events here in our town. It looks like this has the potential to generate up to $200,000 in revenues for the Town of Petawawa."
The money will be used to improve recreation and tourism in Petawawa. Fifty per cent of that revenue will go directly to the town to improve amenities and fifty per cent will go to the Ottawa Valley Tourist Association, which will use it exclusively for promoting tourism to the town of Petawawa.
"If you look at our recreational needs at the present time, we have 5,000 youth under the age of 18 here in the town of Petawawa, and every March Break, every summer, we struggle to provide enough recreational programing," said Serviss.
"So, this will go a long way in helping us hire more programmers and offer more programs to the youth in our town."
At Dog House Brewing Company, Petawawa's local brewery, they believe more advertising could go a long way to help bring in visitors.
"As a brewery owner in the community, it only helps enhance tourism," said co-owner Richard McNish. "So, those kind of promotions will get more people in the door and more people to enjoy the beautiful area that we live in."
The Town of Petawawa says it was recently approached by local hotels about implementing the MAT, which will come into effect Jan. 1, 2025.
"It is a 3 per cent tax on the accommodation," says Savanna Fisher, general manager of the TownePlace Suites by Marriott Petawawa. "It will be added as its own line on the folio bill."
At the TowneSuites, the price for standard room for one night is $219 plus HST. Adding the three percent MAT would add roughly an additional seven dollars to a guest's bill.
The town believes it is situated primely to offer exceptional festivals alongside the region's outdoor amenities, making Petawawa an ideal spot for tourists.
"If you want to get on your ATV, you want to get on your snowmobile, you've got the Algonquin Trail right at our doorstep, right across from our hotels, right across from all of our shopping and everything else," says Colin Coyle, Petawawa's manager of recreation, tourism, and culture.
"We're seeing people come from Toronto and Montreal, and last year we had someone come up from Florida. So, yeah, we do have exactly what we need here to draw tourists that are looking for opportunities to get out into nature."
Short-term rental properties, such as Airbnb's, will not be subject to the new accommodation tax.