Published on
November 26, 2025
France Joins Sweden, Poland, Portugal, Denmark, Czechia, and Switzerland in Europe to Face Skyrocketing Hotel Costs in Canada Due to Temporary Tax Increases in Vancouver and Toronto: Here’s What You Need to Know. As travelers from Europe, including France, Sweden, Poland, Portugal, Denmark, Czechia, and Switzerland, prepare for upcoming trips to Canada, they are in for a big surprise. The cost of staying in Vancouver and Toronto is set to rise significantly due to temporary tax increases. These cities, which are already popular travel destinations, are introducing higher accommodation taxes as part of the preparations for the 2026 FIFA World Cup. The taxes, which will apply to all visitors, will lead to a sharp rise in hotel costs in both cities, leaving European travelers with more expensive stays than they may have anticipated.
This change is especially important for those planning to visit during the World Cup or for general tourism between 2025 and 2026. While the tax hikes apply to all international visitors, Europeans will feel the impact the most due to the high volume of travelers from countries like France, Poland, and Sweden. In fact, many European tourists are accustomed to visiting Toronto and Vancouver, making these tax hikes particularly relevant for them. As travel plans begin to take shape, understanding how these changes affect the cost of staying in these cities is crucial.
For those planning to visit, it’s important to know that these new costs will affect more than just hotel prices. The overall travel experience, including budgeting for food, activities, and accommodations, will be significantly impacted. With these tax increases on the horizon, European travelers will need to adjust their expectations and make informed decisions about their travel destinations and plans.
Toronto’s MAT Surge: What Travelers Need to Know
In Toronto, starting from June 1, 2025, the Municipal Accommodation Tax (MAT) will rise from 6% to 8.5%, a 2.5% increase that will last until July 31, 2026. This increase is part of Toronto’s preparations to host a portion of the 2026 FIFA World Cup.
For hotel operators and short-term rental hosts in Toronto, this increase will apply to all transient accommodations—meaning it will be passed on to guests. European travelers heading to Toronto during this period will see their accommodation costs rise due to the higher tax rate and potential increases in room rates, driven by higher demand as the city prepares for the World Cup.
While the tax applies to all visitors, including Europeans, travelers from nations with high visitor volumes to Canada, such as France and Netherlands, will feel the effects most significantly. The increase in the MAT is a direct result of the need for event-specific funding, as Toronto is gearing up to accommodate a surge in international guests, athletes, and football fans in 2026.
Key takeaway: Travelers from Europe—especially those on tighter budgets—will have to reconsider their accommodation options or explore other Canadian cities with lower tax rates. For many, the added costs will change how they plan their trip to Toronto.
Vancouver’s MRDT Surge: What it Means for European Visitors
Much like Toronto, Vancouver is implementing a temporary 2.5% increase in its Major Events Municipal and Regional District Tax (MRDT) to help fund the city’s preparations for the 2026 FIFA World Cup. This additional tax on accommodations will also be passed directly to travelers.
By summer 2025, Vancouver’s hotel rates had already reached record highs, driven by the increased demand ahead of the World Cup. As the MRDT increase will also apply to all international visitors, European tourists planning to visit Vancouver during this period will face significantly higher accommodation costs.
The situation is further exacerbated by short-term rental restrictions in British Columbia, which are expected to reduce the number of available accommodations, forcing travelers to rely more on traditional hotel rooms, which are likely to be more expensive due to the tax increases.
Key takeaway: Just like in Toronto, European travelers heading to Vancouver for leisure, sport, or family visits will need to plan ahead for higher costs. Those coming for the World Cup may be especially impacted by the combination of increased hotel prices and the temporary tax hike.
European Countries Most Likely to Be Affected
The tax increases in Toronto and Vancouver will impact all international visitors, but European countries are likely to feel a disproportionate effect due to their strong presence in Canada’s tourism market. Below are the European countries most likely to be affected by the temporary tax hikes and why these increases matter for travelers.
1. France: A Key Contributor to Canada’s Visitor Numbers
France is consistently one of the largest sources of international visitors to Canada, particularly in Toronto. The strong air connectivity between Paris and Canada allows French tourists easy access to major Canadian cities. The large Francophone community in Canada also makes France a key player in Canadian tourism.
However, the 2.5% MAT increase in Toronto could deter some French travelers, especially those traveling on a budget, from visiting the city. Alternative cities in Canada or even Europe may become more attractive as a result of the increased accommodation costs.
2. Netherlands: High Propensity for International Travel
The Netherlands is another country with a high propensity for international travel, and Dutch tourists are frequent visitors to Canada. With Vancouver and Toronto being top destinations for Dutch travelers, the increased accommodation tax will likely cause some to reconsider their travel plans.
The World Cup will also drive Dutch fans to Canada, and some may prioritize attending matches in Vancouver and Toronto, even with the higher costs. However, more budget-conscious travelers might seek alternatives to these cities, potentially lowering their overall spending in Canada.
3. Belgium: Small but Highly Mobile
Although Belgium is a smaller country, it has a high mobility rate, and its travelers are keen to explore international destinations. Similar to the Netherlands, the Belgian population’s love for football makes Canada an attractive destination during the World Cup. However, the increased tax rates in Toronto and Vancouver might influence some Belgians to seek more affordable locations in Canada or other countries.
4. Sweden: A Smaller Market but Still Significant
Swedes are known for their meticulous planning and strong interest in global events like the FIFA World Cup. While Sweden has a smaller tourism footprint in Canada, Swedish tourists are still likely to visit, particularly to Toronto and Vancouver for sporting events.
However, the higher accommodation costs and tax increases may lead Swedish travelers to rethink their travel budgets. More budget-friendly destinations within Canada may become more attractive to this price-sensitive market.
5. Denmark: Loyal but Budget-Sensitive
Denmark also has a high propensity for international travel, and Danish travelers have increasingly shown interest in visiting Canada. However, the 2.5% tax increase in Vancouver and Toronto could deter more budget-conscious Danish tourists, who may choose to visit alternative destinations where accommodation prices are lower.
6. Poland: A Growing Market with Budget Constraints
Poland has been a growing market for Canadian tourism, particularly in Toronto, where the large Polish diaspora resides. However, the visa and ETA costs, combined with the increased accommodation taxes, could make Toronto and Vancouver less appealing to Polish visitors.
7. Portugal: Strong Ties with Canada’s Portuguese Diaspora
Portugal has a strong diaspora in Canada, particularly in Toronto, where many Portuguese nationals have settled. The Portuguese community in Canada drives a steady flow of visitors from Portugal, but the tax increases could shift some of these travelers to more affordable regions in Canada or even delay their visits.
8. Greece: Increasing Interest in Canada
While Greece has traditionally focused on Mediterranean tourism, Greek travelers are increasingly showing interest in Canada in recent years. Greek football fans might travel to Canada for the World Cup, but the increased flight and accommodation costs might discourage budget-conscious travelers from visiting Toronto or Vancouver.
9. Czechia: Central European Interest in North America
Travelers from Czechia are increasingly visiting Canada, particularly in Toronto and Vancouver. The Czech market is still modest in size but growing, and Czech tourists might be impacted by the higher accommodation costs. While Czech travelers are likely to visit during the World Cup, they might be deterred by the combined flight and accommodation price increases.
10. Switzerland: Less Sensitive to Price Increases
Switzerland has one of the highest per-capita incomes in Europe, making Swiss travelers generally less price-sensitive than those from other countries. The MAT/MRDT tax increase might not deter Swiss tourists as much as it would for lower-income travelers, especially those booking premium accommodations.
Impact of Temporary Accommodation Tax Increases on European Countries Visiting Toronto and Vancouver (2025–2026)
The following table outlines the impact of the temporary accommodation tax increases in Toronto and Vancouver on travelers from various European countries. This table highlights key details such as why each country is likely to be impacted, the potential consequences for travelers, and specific considerations based on economic resilience, travel volume, and budget sensitivity.CountryWhy ImpactedPotential Consequences for TravelersKey ConsiderationsFranceHigh travel volume to Canada; strong historical ties.Increased accommodation costs may deter budget-conscious travelers.Large diaspora in Canada, high football fanbase, but higher tax burden could lead to destination shifts.NetherlandsHigh propensity for international travel; frequent visitors.Some travelers may opt for less expensive cities or delay visits.Dutch football fans likely to attend World Cup matches, but tax increase could discourage budget travelers.BelgiumHigh mobility, significant number of international travelers.Belgian tourists may seek alternatives or visit less expensive Canadian cities.Likely to attend World Cup events but sensitive to price hikes.SwedenKnown for meticulous planning and interest in global events.Increased costs may reduce the number of Swedish visitors to Toronto/Vancouver.Price-sensitive Swedes may opt for budget alternatives or delay travel plans.DenmarkHigh international travel; Danish football fans likely to visit.Danish travelers may reduce stay duration or opt for less expensive areas.Relatively smaller impact but may deter longer stays or frequent visits due to increased costs.PolandLarge diaspora in Canada, increasing tourism numbers.The visa and tax cost could reduce the number of Polish visitors to Toronto/Vancouver.Many Poles visit Toronto; tax hikes may limit affordable accommodation options.PortugalStrong diaspora in Canada, good air connectivity.Portuguese travelers may seek less expensive Canadian cities or delay visits.Likely to concentrate in Toronto, but tax hikes may push them to explore alternatives.GreeceGrowing interest in Canada, particularly for football fans.Increased costs may discourage Greek travelers, especially for long stays.Higher flight and accommodation costs might deter budget travelers, but football fans may still visit.CzechiaIncreasing interest in North America; modest tourism growth.Moderate impact, but Czech visitors may adjust their budgets or cut stays.Czech travelers are still growing in number, but tax increases will likely discourage longer stays.SwitzerlandHigh per-capita income; luxury travel focus.Swiss travelers may be less affected by the tax increases but still face higher costs.Wealthier Swiss tourists likely to absorb the extra costs, but they may choose premium accommodations, making the tax impact minimal.
In conclusion, Europeans, including travelers from France, Sweden, Poland, Portugal, Denmark, Czechia, and Switzerland, are facing a significant shift in the cost of traveling to Canada. With temporary tax increases in Vancouver and Toronto, hotel costs will rise sharply, impacting the budgets of many visitors. This increase, tied to preparations for the 2026 FIFA World Cup, will apply to all international tourists, but Europeans will likely bear the brunt due to the high number of travelers coming from these countries.
As Vancouver and Toronto gear up for the World Cup, it’s clear that the added taxes will have a ripple effect on European travel. Those planning to stay in these cities will need to factor in these extra costs when budgeting for their trips. Moreover, Europeans who have grown accustomed to visiting Toronto and Vancouver may now need to reconsider their destinations or travel dates to avoid the financial strain caused by these tax hikes.
It’s crucial for travelers to stay informed and adjust their travel plans accordingly. By understanding the full scope of how these temporary tax increases will impact their accommodation costs, European travelers can make more informed decisions about their trips. Whether it’s finding alternative accommodations, adjusting the length of stay, or exploring different Canadian cities, there are options to navigate this change.
Ultimately, France, Sweden, Poland, Portugal, Denmark, Czechia, and Switzerland will all feel the effects of these tax hikes, but being proactive and planning ahead will help mitigate the financial impact of these changes on your travel experience.
