| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$177.58 |
27 |
|
Percentage of total item cost: |
15.09% |
25 |
|
Overall tax index: |
106 |
12 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Toronto. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Toronto compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Toronto currently has an
overall Tax Barometer index of 106,
indicating a
6% increase in
travel-related taxes since June 15, 1994.
This change can be
attributed a increases in the air passenger and car rental sectors.
Taxes on hotels and restaurant meals remain at their base index
levels. For a five-day, four-night trip to
Toronto, travelers
can expect to pay approximately $178.00 in tourism-related taxes, a
total that ranks as the 26th highest among all
52 surveyed destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$120.40 |
- |
|
Airport access fee/premium location surcharge: |
14.61% |
- |
|
Goods and services tax (GST): |
7.00% |
- |
|
Provincial sales tax (PST): |
8.00% |
- |
|
Fuel conservation tax (per day): |
C$ 0.40 |
- |
|
Air conditioning excise tax (per day): |
C$ 0.60 |
- |
|
Total charges for 4-day rental with taxes: |
$159.09 |
- |
|
Total tax $ for 4-day rental: |
$38.69 |
23 |
|
Percentage of total car rental cost: |
24.32% |
39 |
|
Car rental tax index: |
112 |
21 |
|
Summary:
Car rental taxes have increased 12% in Toronto since 1994, the
21st smallest such increase among the 52 surveyed destinations.
This change can be attributed to an increase in the airport access fee
(from 12.75% to 14.61% in 2001), and to the introduction of an air
conditioning excise tax in 2001. For a four-day mid-sized car
rental, visitors can expect to pay approximately $39.00 in taxes, a
total that ranks as the 23rd lowest among all surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$627.81 |
- |
|
Goods and services tax
(GST): |
7.00% |
- |
|
Provincial sales tax (PST): |
5.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$703.15 |
- |
|
Total tax $ for four-nights: |
$75.34 |
33 |
|
Percentage of total hotel room cost: |
10.71% |
27 |
|
Hotel
tax index: |
100 |
8 |
Summary: Toronto's hotel tax rate
remains at its base index level. For a four-night hotel stay,
visitors can expect to pay approximately $75.00 in taxes, a total that
ranks as the 20th highest among all 52 surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$273.51 |
- |
|
Goods and services tax
(GST): |
7.00% |
- |
|
Provincial sales tax (PST): |
8.00% |
- |
|
Total charges for 12 meals with taxes: |
$314.54 |
- |
|
Total tax $ for 12 meals: |
$41.03 |
32 |
|
Percentage of total restaurant meals cost: |
13.04% |
34 |
|
Restaurant tax index: |
100 |
5 |
Summary: Tax rates on restaurant meals in Toronto remain at
their 1994 base index levels. Toronto collects approximately
$41.00 in taxes for 12 meals, a total that ranks as the 21st highest
among all 52 surveyed destinations. |
 |
Rank |
|
Toronto
airport improvement fee: |
C$ 10.00 |
- |
|
International air travelers security charge: |
C$ 24.00 |
 |
|
Total tax $ for international arrival and departure: |
$22.52 |
33 |
|
Percentage of total trip cost: |
1.91% |
35 |
|
Air passenger tax index: |
136 |
15 |
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
Taxes on international airline passengers in Toronto have increased
36% since 1994, the 15th smallest increase among all surveyed
destinations. This change can be mainly attributed to the
introduction of the international air travelers security charge in
2002. This C$ 24.00 fee (C$ 12.00 for one-way flights) was
introduced to pay for enhanced security systems at Canadian airports. The $22.52 in taxes collected on
an international arrival/departure ranks as the 20th highest among all
52 surveyed destinations. |
 |
|
Barometer No. 1:
The 2.0% increase in
the overall index was due to a C$ 2.50 increase in the international
air transport tax imposed on departing travelers.
Barometer No. 9:
Air passenger charges were reduced when the Canadian government
abolished the Canadian air transport tax.
Barometer No. 10:
The airport fee/premium location surcharge on car rentals was
increased to 14.61%, and a new C$ 0.60/day air conditioning excise tax
was introduced. A new C$ 10.00 airport improvement fee was also
introduced, affecting airline passengers.
Barometer No. 11:
A new international air traveler’s security charge was introduced at a
rate of C$ 12.00 for one-way flights and C$ 24.00 for round trip
flights. The revenue is earmarked for new security measures at
Canadian airports.
|
|
