Whitby hotel incentives offer major savings for new developments
Whitby is introducing a new financial incentive aimed at encouraging hotel development and expanding the town’s tourism and business-event capacity.
The new Whitby hotel incentives will provide qualifying projects with a 50 per cent discount on the Town of Whitby’s portion of development charges, as long as building permits are issued by Feb. 29, 2028.
Council approved the measure during a special meeting on Aug. 26 as an addition to Whitby’s existing Hotel and Conference Centre Attraction Program.
The discount is available to eligible hotel and hotel-conference centre developments that are enrolled in the program. However, the incentive only applies to development charges collected by the Town of Whitby. Charges collected separately on behalf of Durham Region and local school boards will not be reduced.
Whitby launched the Hotel and Conference Centre Attraction Program earlier in 2026 as part of its effort to attract more accommodation options, support tourism growth and increase the town’s ability to host conferences, meetings and other business events.
Three developments are currently enrolled in the program. These include one hotel with an integrated conference centre and two stand-alone hotel projects. The Town says one additional opportunity remains available for another hotel-conference centre development.
Along with the 50 per cent development charge discount, qualifying projects will also be able to defer the remaining Town development charges from the building-permit stage until the development reaches occupancy.
No interest will be charged on those deferred Town development charges during the first 24 months after the building permit is issued.
Town officials estimate the Whitby hotel incentives could provide approximately $1 million to $2 million in savings for each qualifying development, depending on the size and scope of the project.
Whitby also expects the program to deliver long-term economic benefits.
According to Town estimates, the three hotel projects already enrolled could eventually generate approximately $540,000 to $870,000 annually through property taxes and the Municipal Accommodation Tax.
The developments could also generate an estimated $8.4 million to $14 million in annual off-site visitor spending. That spending could benefit local restaurants, retailers, attractions and other Whitby businesses.
To receive the 50 per cent development charge reduction, applicants must satisfy the program’s eligibility and development requirements and obtain their building permits no later than Feb. 29, 2028.
The Town hopes the expanded Whitby hotel incentives will help accelerate construction while strengthening Whitby’s hospitality sector and supporting broader local economic growth.
