Making plans for the ‘tourist tax’ to help maintain Grand Bend

Lambton Shores is considering a new levy, which would add on to short-term rental fees. CTV London’s Gerry Dewan reports.

The leaf blowers were howling and the street sweepers were rumbling in Grand Bend on Thursday.

The annual spring clean-up was underway as crews were getting things ready for an influx of visitors for the May long weekend.

Grand Bend is a village in the municipality of Lambton Shores. The village is home to about 4,000 people during the winter, but Lambton Shores Mayor Doug Cook notes that the population swells dramatically during the summer, “It hits 25,000 to 30,000, closer to 40,000 on some weekends. So that’s a significant burden on our services.”

Cook stresses the importance of maintaining Grand Bend as a clean and safe place for tourists, but admits that comes at a cost.

Cook told CTV News it’s a cost that taxpayers throughout the community traditionally borne.

That will change in 2026, with some of those costs absorbed by the introduction of a Municipal Accommodation Tax (MAT).

According to Cook, “If you stay in one of our short-term accommodations, a hotel, motel or short-term rental, you will be charged an additional 4 per cent on your room rate, which will go towards offsetting some of the cost of staying here.”

Cook estimates the tax will generate additional revenue of about $400,000 a year. Those funds would help cover costs most other municipalities don’t face, including additional policing, municipal enforcement officers, and community beautification projects.

Dan Saint has run Xtreme Watersports in Grand Bend for more than 20 years. His business offers water fun of various kinds, including jet ski rentals and speed boat charters. He wants to ensure the people who operate short-term accommodations aren’t negatively impacted by the MAT, “I’m just a little bit concerned for the good people that have all of the accommodations around here will have an extra tax on them.”

Saint is willing to give the MAT a chance, but wants assurances it will be done right, “We understand that there’s got to be infrastructure. That all this stuff has to be done and that costs money. So, it’s yeah, they’ve got to think about it and make sure that, it’s going to work for everyone.”

Rich Denomme has operated the Baja Beach Bar for five years. He sees business owners doing their part to create a welcoming environment for tourists and the municipality continually making improvements to ‘The Bend’ and he sees it paying off, “So now it’s gotten to the point where people are investing their money into properties and fixing things up, trying to make it more of a, I guess, a destination spot.”

Denomme doesn’t believe the new tax will impact Grand Bend’s ability to attract tourists.

Like many Ontario resort communities, Grand Bend’s peak season has traditionally gone from the Victoria Day long weekend to the Labour Day long weekend.

Cook anticipates that half of the funds from this accommodation tax will go towards forming a committee that will try to extend that season. He envisions year-round events, but the focus will be on the shoulder months, the two months on either side of peak season, “They’ll look after the other 2 per cent of the tax revenue that will go directly to putting tourism activities, hopefully in the shoulder season, to keep us busier all year round.”

Cook said the longer season with more events will mean more opportunities for those who provide short-term accommodations.

The municipality is undertaking an online consultation process and will also hold a public meeting to discuss implementation of the MAT.