What is a Municipal Accommodation Tax (MAT)?

A MAT is a percentage-based tax applied to overnight stays in hotels, motels, and short-term rentals (stays of 30 days or less). The Ontario government passed legislation in 2017 that gave Municipalities in the province permissive authority to collect a MAT through passing a by-law. Municipalities may collect and use this tax to fund tourism-related projects and organizations that promote local tourism.

Essex County MAT Proposal Highlights

Earlier in the Summer, Amherstburg Council voted to accept the MAT proposal put forward by Tourism Windsor-Essex. During July’s council meeting, Kingsville Council voted to reject Tourism Windsor Essex Pelee Island’s (TWEPI) proposal for a Municipal Accommodation Tax (MAT).

Leamington Council hasn’t voted yet—but their decision will directly shape our tourism economy for years to come.

At Dream BNB Hospitality Inc., we’re not against a MAT. In fact, we believe it could be a valuable tool for tourism growth. But it must be implemented with a clear, transparent plan at the right time and with a critical guarantee: 100% of MAT revenue must stay in Leamington and be reinvested locally.

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About TWEPI — and Why Leamington’s Path Could Be Different

Tourism Windsor Essex Pelee Island (TWEPI) is the official destination marketing organization for the broader Windsor–Essex region, including Pelee Island. Their work includes producing regional visitor guides, running seasonal tourism campaigns, supporting events, and promoting attractions across all municipalities in the region.

For Leamington, TWEPI’s proposal means that we would be handing over nearly half a million dollars yearly to TWEPI to market our region as a whole. Our town would be marketed alongside Windsor, Kingsville, Amherstburg, and other Essex County destinations under a single, shared brand. While this has benefits—especially in attracting diverse visitors to the area—it can also dilute the focus on Leamington’s unique identity as a premier Lake Erie waterfront destination.

Leamington is not just another stop on the regional map. According to data released by Ontario Southwest Tourism, since 2019, Leamington has seen a 300% increase in short-term rental bedrooms available to visitors looking for a relaxing waterfront home-away-from-home surrounded by nature’s wonder. This increase MORE THAN DOUBLES the nightly room availability of Leamington accommodations alone, with Dream BNB Hospitality Inc. being a driving force behind this growth. Along with our access to Point Pelee National Park, the impeccably maintained Seacliff Park & Beach and upcoming Waterfront Market Plaza expansion, and an ever-growing viticulture and agriculture scene renowned for an extended warm growing season, we have the potential to stand out as Ontario’s lakeside getaway—a destination in its own right. We love the idea of investing in tourism — it’s what we do every day. And we want to be clear: we would ultimately support a MAT — but only if it is designed so that 100% of the funds stay in Leamington and are reinvested directly into our community’s tourism development.

This is why the 100% local reinvestment principle matters so much when it comes to the Municipal Accommodation Tax. If MAT dollars are pooled regionally, there’s no guarantee they will directly fund the projects, marketing, and experiences that make Leamington special. By keeping all MAT revenue local, we can ensure every visitor contribution strengthens our own tourism brand, builds our infrastructure, and positions Leamington not just as part of Windsor–Essex—but as the jewel of Lake Erie’s North Shore. 

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Why Leamington Must Prioritize Local Reinvestment

Leamington’s reputation as a top waterfront destination in Ontario is still growing. Our brand is being shaped by our natural beauty, accessible and affordable local amenities, access to wineries and other agricultural experiences, and unique lakeside attractions like the Music on the 42 Free Concert Series, fully funded by the Municipality of Leamington and produced by The Bank Theatre. This concert series entertains visitors and locals alike with free concerts on Saturday evenings throughout the summer at the Sunset Amphitheatre overlooking Lake Erie.

Imposing a MAT prematurely—or without a guarantee of full local reinvestment—risks damaging this momentum. If one thing is certain, it’s that visitors form quick and lasting impressions.

We’ve seen it firsthand: one guest told us they chose to visit Leamington over Niagara-on-the-Lake because of high visitor taxes and fees. That’s not the kind of story we want circulating about Leamington.

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Stand Out Use of MAT

Other Ontario cities have shown what’s possible when MAT funds stay local.

In Guelph, Ontario, MAT revenue funds Destination Marketing Guelph, which supports tourism through strategic grants and marketing programs. Their Tourism Funding Program includes three targeted portfolios designed to grow visitor numbers, enhance events, and strengthen the city’s profile with a clear and transparent plan.

We love this model because MAT dollars are directly reinvested into local initiatives—and Leamington has the same opportunity to create a made-for-our-community approach.

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100% LEAMINGTON

The guiding principle is simple: If we collect it here, we keep it here.

Every dollar generated by a MAT should be reinvested in Leamington’s own tourism infrastructure, marketing campaigns, and unique experiences—not absorbed into regional pools or spread so thin that the impact is invisible.

This funding should be used for tangible improvements like:

• • Upgrading and maintaining our waterfront amenities

• • Expanding support for festival programming

• • Promoting Leamington as a tourism destination 

• • Enhancing eco-tourism experiences in nearby parks and reserves

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Building Momentum Before Adding a MAT

Right now, Leamington is already investing in projects that will elevate our destination without the need for a new visitor tax.

One standout example is the Waterfront Market Plaza and Parking Lot Expansion, set to begin in late summer 2025. This ambitious project will add:

• • A children’s playground

• • A vendor zone and multi-use stage for events

• • Modern public washrooms and a food plaza

• • Expanded parking and a dedicated food truck area

• • Public art installations and enhanced landscaping

• • A walkable boulevard connecting the entire waterfront experience

This kind of forward momentum is exactly what we need to strengthen our tourism base before introducing any new fees. Once these enhancements are complete, a MAT can be positioned as a reinvestment tool—not a barrier.

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A Call for Strategic Timing

The question isn’t whether Leamington should ever have a MAT—it’s when and how it should be introduced.

We believe the right timing is after:

1. •  Short-term rental regulations are established and lay the foundation for establishing a framework for collecting a MAT from all local accommodation providers 

1. • Leamington’s tourism profile is firmly established as a premier Lake Erie waterfront destination 

1. • A transparent, local-only reinvestment plan is in place

This way, visitors will see a thriving, well-managed destination that’s worth the added contribution.

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Just the MAT Facts

A Municipal Accommodation Tax could be a powerful driver of tourism growth in Leamington—if executed with a clear and transparent plan.

That means:

• • 100% of MAT funds stay local

• • Full transparency in how those funds are spent

• • Implementation at a time when it strengthens, not stalls, our momentum

Leamington’s tourism future depends on it. Now is the time to focus on building our reputation and experiences—so when the MAT is implemented, it’s an investment in success, not a deterrent to growth.