The local tourism industry is showing strong signs of recovery following the COVID-19 pandemic.
The city’s municipal accommodation tax (MAT) generated significantly more revenue than expected through the first eight months of 2022, bringing in more than $476,000 against a projected $295,000.
In effect since September 2020, the MAT applies a four per cent tax to local accommodations of 30 days or less, with proceeds split between the city and Orillia & Lake Country Tourism for the exclusive purpose of bolstering the tourism industry.
Funds generated through the tax go into marketing, promoting local initiatives, and capital projects to draw visitors to the city.
Given the difficulties of 2020 and 2021, city staff said they were “pleasantly surprised” with MAT figures for 2022.
“When we put together (last year’s) final budget figures, we really had no clear outlook in terms of what the landscape would look like (with) the pandemic,” said Michael Ladouceur, interim director of business development.
“The results that we got were far above our expectations. I think it shows the desire for those, especially in Ontario, wanting to move, visit, and experience (tourism) offerings again, so we were pleasantly surprised and yet happy at the same time.”
While he said local tourism has yet to fully recover from the pandemic, the MAT figures indicate signs of recovery.
“From the hotel standpoint, our occupancy rates are definitely higher than, obviously, 2020 and 2021, (and) in our peak seasons, they met our pre-COVID numbers. Overall tourism industry, I wouldn’t yet proclaim that we’re back to pre pre-COVID levels, just as the economy has taken a hit,” Ladouceur said.
“I think we’ve recovered faster than we thought, but we’re not quite there yet.”
Kris Puhvel, Orillia & Lake Country Tourism’s executive director, said MAT funds are “extremely important” for supporting tourism locally.
“It really has allowed us to do so much more marketing than we almost ever dreamt of. We all know that advertising’s not cheap,” Puhvel said. “It’s really given us more opportunities to put Orillia and the region on the map … and I think, in the end, we have already seen positive results, from good visitation in a very competitive tourism market.”
Puhvel said his organization has been able to significantly increase its marketing, both in terms of quality and reach, with MAT funds at its disposal.
“We’ve been able to increase our video production, which, in turn, is used for digital advertising campaigns. We’ve been able to do extensive billboard advertising in the GTA. We’ve been able to do a lot more digital marketing as well and not only in our traditional tourism markets of the GTA and southwestern Ontario, but also marketing to the locals,” he said.
“Our marketing stretches over a large geographical area, and we (can) just do more of that with the MAT.”
Beyond advertising, the city has used its share of MAT funds to support local initiatives, such as the $10,000 it contributed to this year’s See You on the Patio program, and to bring in large events.
This year, the city hosted the Slo-Pitch National men’s and ladies A-division championship, which came to town, in part, because the MAT helped offset facility costs for the tournament, noted a city staff report.
MAT funds also contributed to the redesign of Swanmore Hall at the Leacock Museum, as well as hosting the city’s tourism ambassador training program, a free course that gives students training in Orillia’s heritage, history and attractions methods for enriching the visitor experience, and more.
“Those kinds of projects, which will allow us to grow and enhance our our tourism assets locally, I think that’s (where) we’ll see great advantage to the MAT,” Ladouceur said of the recent investment at Swanmore Hall. “As the years come, more money is accumulated and more opportunities for reinvestment on larger scale projects (will) come to fruition.”
