TORONTO’S DESTINATION MARKETING FEE

Most major North American cities have hotel taxes. These legislated levies are automatically applied to a guest’s hotel bill and the money they generate is earmarked for advertising and other initiatives to attract more tourists and deliver more services to visitors while in the city.

The Greater Toronto Area (GTA) does not have a hotel tax.

As a result, other cities – which are competing with Toronto for tourism business – have millions of extra dollars to spend on marketing.  Toronto needs to level the competitive playing field.

As of January 1, 2004, a 3% Destination Marketing Fee (DMF)™* applies to guest rooms rented for less than 30 days.  The total of the DMF™ and federal Goods and Services Tax* is not to exceed 13% – which is in line with similar mechanisms in other major destinations across North America. The money generated from the DMF™ will be dedicated to Toronto’s promotional efforts.   

The DMF™ is collected and administered by the Greater Toronto Hotel Association, which forwards the money to Tourism Toronto, the organization responsible for promoting our city to potential visitors around the world.

Marketing is the lifeblood of tourism.  People won’t come to a city if they don’t know about it.  The funding generated by the DMF™ will ensure that Toronto is able to tell millions of people about the many great things our city has to offer and the terrific experiences you can enjoy.

The tourism industry as an important generator of jobs and a major contributor to the economy. Thank you for helping to support the thousands of people who depend on the tourism industry for their livelihood.  And thank you for contributing to our efforts to raise awareness of Toronto as a must-see destination.

*The Destination Marketing Fee or DMF is a registered trademark of the Greater Toronto Hotel Association.