Canada FIFA World Cup Hospitality: It could soon cost a little additional to stay in a Toronto hotel as the city has now since a temporary hike on its Municipal Accommodation Tax as a means of revenue to offset the cost of hosting the FIFA World Cup. The cost of holding six World Cup competitions in Toronto in 2026 is pegged at $380 million, but approximately $201 million of that is pending from the regional and federal managements.
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City staff say that they have previously identified about $83.6 million in income from existing sources, including profitable right sales, rental fees, and in-kind charities. However, that would still leave an around $95 million shortfall. In a report that will go ahead with the city council’s FIFA World Cup group next week, staff recommends.
That the current tax on instant hotel stays and short-term fees be amplified from six percent to 8.5 percent between June 1, 2025, and July 31, 2026. Doing so, staff says, would make an additional $56.1 million in income which would assist in offsetting the popularity of the remaining shortfall. It is predicted that any potential impressions on hospitality workers will be principally offset by increased room claims.
Football World Cup Hospitality: Toronto’s Hotel Tax Hike Funding the FIFA World Cup 2026
Related visitor expenses in the lead-up, through, and following the FIFA World Cup 2026, as well as considerable future aids due to Toronto’s global perceptibility gained from holding the FIFA World Cup the report states. The assessed cost of hosting World Cup games in the city has risen by around $80 million since Toronto was first named as one of 15 host places back in 2022.
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While some members of the city assembly have criticized the increasing costs, others have suggested that the estimated $392 million in economic influence from the event as well as the amplified visibility for the city will make the asset worthwhile. Staff were previously asked to educate a variety of income tools that can be used to help offset the cost of holding the World Cup.
But in the report, staff say that mountaineering the hotel tax delivers the most effective opportunity to make revenue directly from increased financial activity after the FIFA World Cup without impacting taxpayers.
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FIFA World Cup Hospitality: Comparing Host Cities Toronto’s Hotel Tax Plan Measures Up
Toronto city staff are endorsing a plan to hit up out-of-town guests for the cash it needs to make up its World Cup backing shortfall with a temporary hike to the civic lodging tax charged to hotels and short-term fees in the lead-up to the World Cup 2026, rendering to Ben Spurr of the TORONTO STAR. The 14-month upsurge in the levy from 6-8.5% would jump next June and is predicted to generate almost $57M in extra revenue for the city.
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However, even with the backing injection, Toronto would still be virtually $40M short of what it required to host the contest. Afterward, the federal and regional governments left it on the hanger for nearly half the occurrence’s costs. It is likely to cost Toronto $380M to be one of the 16 host metropolises. The sphere has vowed up to $97M on the way to the cost.
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FIFA World Cup Hospitality: The Future of Toronto’s Hospitality Sector Post-FIFA World Cup
While the federal administration is causal more than $104M, leaving Toronto accountable for the residual $178M or just below half the total. Vancouver, the only additional Canadian host city, is also cumulative its hotel tax to pay for the World Cup. But in this case, the advanced rate will be at home for seven years.
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