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Government Relations > Illegal Hotel Rooms
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Illegal Hotel Rooms

The GTA must level the playing field for all hotels with the illegal hotel rooms industry. These businesses are currently not paying municipal commercial property taxes, licensing fees and meeting other rules and regulations that hotels are required to meet. Based on our preliminary analysis the illegal hotels rooms industry represents about $60M in room revenue and about 8% of the hotel room supply.

The vast majority of the illegal hotel room inventory across the GTA is concentrated in apartments, lofts and condominiums in the City of Toronto.  The GTHA recommends that the City of Toronto and other municipalities take action to provide a level playing field for business and assess commercial property tax to the private hotel room industry.

In October 2016, the City of Toronto Executive Committee directed the “Executive Director, Municipal Licensing and Standards and the Chief Planner and Executive Director, City Planning to report no later than the end of the second quarter of 2017 with proposed regulations for short-term rentals.”

The GTHA continues to represent our members on this issue.


GTHA President & CEO speaks to illegal hotel rooms on The Agenda | TVO
January, 23 2017: GTHA President & CEO Terry Mundell participated in a discussion on The Agenda on TVO focusing on the challenges of the sharing economy and illegal hotels rooms. Watch the discussion here.

The GTHA continues to represent our members on this issue.


RESOURCES:

Vancouver’s actions on illegal hotel rooms.


Interested in what’s happening in the United States around illegal hotel rooms? Visit the American Hotel and Lodging Association website.