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Use ‘overnight stay tax’ money to beautify downtown, council urged

Council unanimously approved funding program for piece of municipal accommodation tax pie
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As council moved to approve a new program to spend dollars raised through a tax on overnight accommodations, it was urged to focus on downtown beautification efforts meant to foster more tourism.

“We must invest in initiatives that will stand as enduring tourism attractions for generations to come,” said John Fisher, past-president of the Guelph Hiking Trail Club, listing building facade improvements, private property murals and public art installation as examples. “The initiatives hold tremendous potential to transform our downtown into a dynamic, creative and inviting destination all year long.”

During Tuesday’s council meeting, unanimous approval was given to a administrative policy related to the municipal accommodation tax — a four per cent fee applied to hotel rooms and other overnight stays – including putting $100,000 annually into a reserve fund for council-approved initiatives and a establishing a $50,000 community grant to support things such as attracting professional conferences, significant sporting events and travelling festivals.

In the first 16 months, the tax on overnight stays generated about $1.2 million, with an average of 13,500 accommodations booked per month. That money is split evenly between the city and Guelph Chamber of Commerce, which was brought on to oversee the program and tourism marketing initiatives.

As part of the 2024 city budget, council included a clause approving a community-led initiative to improve connections along the Guelph to Goderich trail, which includes enhancements in the downtown.

“I feel Downtown Guelph needs to be the tourism star attraction and insufficient attention is given to its beautification,” Fisher told council on Tuesday,

“We also need to ensure that the $100,000 set aside in a reserve fund is used to create impactful, long-term, tourism magnet projects, whether it be a truly monumental piece of art or the redevelopment of the downtown riverfront trail.”

When the administrative policy was presented to council’s committee of the whole earlier in the month, representatives of The GOOD Games asked for financial support through the tax as well, though no specific amount was requested.

Community grant programs will likely be ready to begin accepting applications in May.


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Richard Vivian

About the Author: Richard Vivian

Richard Vivian is an award-winning journalist and longtime Guelph resident. He joined the GuelphToday team as assistant editor in 2020, largely covering municipal matters and general assignment duties
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