Whitby hotel incentives are being expanded as the Town looks to turn growing hospitality-sector interest into new hotels, conference space, jobs and tourism spending.
Whitby Council approved a 50% discount on the Town’s portion of development charges for qualifying applicants in its Hotel and Conference Centre Attraction Program during a special meeting on Aug. 26.
The decision builds on an incentive program launched earlier this year that already allowed eligible hotel projects to defer municipal development-charge payments and receive interest relief.
Discount comes with construction deadline
The new 50% discount will not be available indefinitely.
Whitby says participating applicants must obtain a building permit within 18 months to qualify, an approach intended to encourage projects to move from planning into construction rather than remain stalled.
Mayor Elizabeth Roy said high construction costs, financing pressures, labour challenges and economic uncertainty have made it increasingly difficult for major developments to proceed even when there is clear market demand.
Attracting a hotel and conference centre has been identified as a goal in Whitby’s Community Strategic Plan and Economic Development Strategy.
A Town feasibility study previously concluded that Whitby has room for additional hotel investment, including an upscale hotel with integrated conference facilities and a separate midscale or upper-midscale hotel.
Three hotel projects already enrolled
The Town’s attraction program received rapid interest after launching in April.
As of June, three applicants were enrolled — one seeking the hotel-conference centre opportunity and two pursuing stand-alone hotel developments.
Under the new Whitby hotel incentives, the 50% development-charge discount is expected to represent approximately $1 million to $2 million per hotel project, depending on the development.
Whitby estimates the three projects currently in the program could collectively generate between $540,000 and $870,000 each year through property taxes and the Town’s Municipal Accommodation Tax.
The Town also projects between $8.4 million and $14 million in new annual off-site visitor spending, benefiting local restaurants, retailers, attractions and other businesses.
Whitby’s Municipal Accommodation Tax is currently set at 4% on eligible hotel and motel stays, with revenue divided between the Town and the Whitby Tourism Development Corporation.
Sports and tourism driving hotel demand
Town officials have repeatedly linked the need for additional hotel capacity to Whitby’s growing sports and tourism sectors.
The new Fieldgate Sports Complex is expected to increase tournament and event traffic, while destinations including Thermea Spa Village also attract visitors who may require overnight accommodation.
Whitby’s previous hotel feasibility work found that neighbouring municipalities have been absorbing some of the demand for meetings, conferences and overnight stays because the Town does not currently have sufficient capacity.
Supporters of the incentives argue that new hotel development would keep more visitor spending within Whitby while creating construction, hospitality, food-service, maintenance and event-management jobs.
Rental housing incentives approved too
Council also approved a separate measure aimed at purpose-built rental housing.
Under that program, eligible developments can receive discounts of up to 50% on the Town’s residential development charges, with payments spread over as long as 10 years following occupancy.
The two programs form part of Whitby’s wider effort to encourage investment while responding to higher development and financing costs.
For hotel projects, the immediate goal is clear: use the expanded Whitby hotel incentives to turn current investor interest into construction and eventually increase the Town’s hotel and conference capacity.
