THUNDER BAY — Less than a week since it took effect, the City of Thunder Bay's new accommodation tax is causing ripples rather than a tidal wave of discontent from motel and hotel patrons.
A spokesperson for the group that represents major city hotels says there has been not been "any resistance at all" from guests at the property she manages.
Roberta Sawchyn, chair of the Thunder Bay Hotel Association, says she's not very surprised because many tourists are already familiar with this kind of tax through their travels to other cities.
Sawchyn noted in an interview Tuesday that she had not yet had a chance to collect feedback from other members of the association, but she expects there will be some customers with questions about the new levy..
The hotel group went on the record earlier this year as supporting the accommodation tax on the basis that at least half the estimated revenue of at least $2 million must be used to promote tourism.
At some smaller motels in the city, however, there's been grumbling among patrons since the tax went into effect on Sept. 1.
Sam Elmahriki, who operates the Old Country Motel and the Modern Motel on North Cumberland Street, said he's getting a negative reaction from customers.
Elmahriki spoke out previously against taxing small operators who accommodate clients who aren't part of the cross-country tourist traffic, including individuals who travel to Thunder Bay from outlying communities for medical appointments, single mothers and students needing temporary accommodation.
He had asked city council to exempt businesses with 15 or fewer rooms.
Elmahriki said Tuesday that, while some of his customers are paying the tax without comment, others take objection to it, with one person suggesting it will cause operators to lose business.
He's giving patrons the option of having their feedback about the accommodation tax documented at the front desk, so he can forward it to city hall.
Elmahriki said he's collecting the data even though he has "a lot of doubt" that it will have any impact on city council.
In 2017, Thunder Bay's hotel occupancy rate was over 73 per cent, four percentage points higher than the Ontario average for the year. In the summer months, it was nearly 90 per cent, the third highest hotel occupancy rate in Canada.
The city's 48 accommodation providers—including hotels, motels, and bed and breakfast enterprises—offer an estimated 2,360 guest rooms. In addition, there are at least 75 Airbnb properties in Thunder Bay.
Operators must list the tax as a separate item on customers' bills.
The city has provided cards that can be given to patrons that include a link to the city's website with more details about the tax.
