Tax on Sudbury hotels set to become pricier to help fund the new arena

In the new year, guests staying in Greater Sudbury will pay a slightly higher municipal accommodation tax (MAT).

On Tuesday, city council voted to increase that tax from four to six per cent to help pay for the new $200-million downtown arena and event centre.

Mayor Paul Lefebvre says the move is estimated to generate over $1 million in additional revenue annually.

He says the figure of two per cent was chosen to match the MAT increases of other municipalities throughout the province, including Kitchener, Ottawa and Toronto.

"This is part of our financing plan," said Lefebvre. "It's important that we have everybody sharing in the cost of this."

Lefebvre says he's not anticipating much resistance from the local hospitality industry.

"We said back in April that we would be implementing this," he said. ""Our focus is on getting their hotels full. We are doing our part as a city to create events and bring people in."

The MAT applies to accommodations of less than 30 consecutive days and includes hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, or other establishments providing lodging including those sold through online platforms like Airbnb.

It was first implemented in 2018.

'This doesn't benefit us' says small local business

Some smaller businesses say they will struggle to absorb the latest increase.

Amanda Linton is the owner of Northern Hillside Inn in Onaping in the northern reaches of Greater Sudbury.

She says almost all of her guests are workers in the mining industry who come to town for their employment or for training.

"Charging them extra money while they're paying for a mortgage at home for something they are not even going to use is a really hard sell," she said.

She says the arrival of the MAT in 2018 forced her to change her policies, and she now requests that rooms be booked monthly to avoid having to pay it.

"That extra four per cent was turning people away We're so small, we can't offer discounts or anything."

She says her new monthly booking policy has helped save some business, but also means she's had to turn occasional guests down.

"It's just such a huge headache. Nobody that stays here would go to concerts in Sudbury, we're too far out This doesn't benefit us."

The MAT of other northern Ontario cities, including Timmins, Sault Ste. Marie and North Bay, remains at four per cent.