The Invest Clarington team is working with local hotels, motels, and short-term rental providers (like Airbnb and Vrbo) to roll out a visitor-funded Municipal Accommodation Tax (MAT) on overnight stays.
Regulated by the Province of Ontario, a MAT will allow Clarington to reinvest in tourism by promoting the community and enhancing local attractions. That means more visitors, stronger support for local businesses, and a boost to our local economy – all without adding financial burden to residents.
Why implement a MAT?
Clarington is growing—and so are the opportunities. Our population is expected to reach 221,000 by 2051, and with that growth comes exciting new possibilities for recreation and tourism. From out-of-town sports tournaments to world-class racetrack events, visitors already come to Clarington from far and wide. Through the collection of a MAT, these opportunities can be reinvested back into the community to benefit everyone.
More than 70 municipalities across Ontario already have a MAT in place – including all of Clarington’s lakeshore neighbours within Durham Region, such as Oshawa, Whitby, Ajax, and Pickering. Implementing a MAT brings Clarington in line with regional and provincial best practices, ensuring the municipality remains a vibrant destination.
Frequently asked questions
A MAT is a standard practice across the province. More than 73 Ontario municipalities already charge a MAT, including Oshawa, Whitby, Ajax, Pickering, Toronto, Vaughan, Markham, Mississauga, Oakville, Burlington, Hamilton, St. Catharines, Niagara Falls, Woolwich, Collingwood, Orillia, Belleville, Brockville, Cornwall, Kingston and many more.
When Clarington residents travel to these municipalities, they pay a MAT (up to 8.5 per cent in some cases). Without a MAT in Clarington, tourism dollars leak out of our local economy.
No. A MAT is not a tax on Clarington residents or businesses. It is added to the cost of short-term overnight stays and paid for by guests visiting the area. This ensures tourism development is funded by tourism, not by local property taxes.
By law, MAT revenues must directly support local tourism development, including:
- Tourism promotion and marketing
- Tourism infrastructure improvements
- Place-making initiatives
These projects benefit local businesses, residents, and visitors, creating a stronger local economy in Clarington.
Implementing a MAT in Clarington could generate significant revenue for tourism development. Clarington has approximately 288 hotel and motel rooms. Based on different MAT rates and occupancy levels, estimated annual revenue is:
MAT Rate | 50% Occupancy | 75% Occupancy |
4% | $342,691 | $514,037 |
5% | $428,364 | $642,546 |
6% | $514,037 | $771,055 |
Note: Short-term rentals (Airbnb, Vrbo) would increase these totals further.
Administration costs to implement and manage MAT in Clarington are minimal. Like 30+ other municipalities, Clarington plans to contract MAT administration to the Ontario Restaurant, Hotel and Motel Association (ORHMA) at 1.8 per cent of remittances.
Based on hotel/motel estimates, the annual ORHMA fee would range from $6,168 to $13,879, depending on MAT rate and occupancy:
MAT Rate | 50% Occupancy | 75% Occupancy |
4% | $6,168 | $9,253 |
5% | $7,711 | $11,566 |
6% | $9,253 | $13,879 |
This fee covers a comprehensive MAT management service, including:
- Secure online reporting/remittance portal for hotels, motels and short-term rental hosts
- Automated reminders for reporting and payment deadlines
- Compliance tracking and aging reports for the municipality
- Direct support for accommodation providers (meetings/ phone/email)
- Market statistics and reporting tailored to Clarington
- Late payment penalty module allowing for the application of interest for municipalities opting to do so
As mentioned above, the Municipal Accommodation Tax (MAT) is becoming a standard practice across Ontario, with 73 municipalities already implementing it and more expected to follow. Visitors have come to expect it.
As Clarington continues to grow and attract more tourism opportunities, implementing a MAT will help ensure the municipality remains competitive as a tourist destination. The revenue generated will support tourism marketing and infrastructure, making Clarington more appealing to both visitors and investors.
Importantly, the MAT ensures that the costs of tourism development are covered by visitors—not local taxpayers.
MAT only applies to short-term stays under 29 days. Most migrant and contract workers book monthly stays, which are exempt under provincial legislation.
Additionally, rooms provided by employers to employees in premises operated by the employer (e.g. farm worker housing) are typically exempt from MAT by-laws.
The Municipal Accommodation Tax is mandatory. All accommodation providers are required by law to collect it from visiting guests, and it cannot be waived or refused.
Yes. Accommodation providers will receive individualized support throughout the rollout to make the process clear and practical. This includes:
- Guidance on how to report and remit MAT
- Step-by-step instructions for using the online reporting portal
- Clarification of deadlines and compliance requirements
- Access to dedicated support channels for questions and troubleshooting
