Bob Mackin
As of last July, Vancouver city hall had raised almost $89 million from accommodation taxes to help pay for hosting FIFA World Cup 26.
In early 2023, the B.C. NDP government authorized city to receive a 2.5% municipal and regional district tax (MRDT) on hotel rooms, bed and breakfasts and short-term residential rentals.
But, rising costs mean the tax measure could fall as much as $38 million short.
Monthly breakdown of accommodation tax revenue raised for FIFA World Cup 26 in Vancouver. (CoV/FOI)
Figures released to theBreaker.news under freedom of information on Jan. 19 show that monthly tax revenue averaged $2.87 million over the first 31 months.
During that period, monthly revenue ranged from a low of $1.33 million in February 2025 to a high of $4.73 million in July 2024.
February 2023 was the first full month of the temporary tax. It is scheduled to run through the end of January 2030. Based on revenue trends, it could raise another $155 million for a final tally of $244 million.
Changing forecasts
Last June’s B.C. government World Cup spending update showed civic costs alone were estimated at $261 million to $281 million. The city was forecasting $250 million to $260 million in revenue under the program.
In 2022, when Vancouver became one of the 16 host cities, the estimated cost of bringing the tournament to B.C. Place Stadium was $240 million to $260 million. It has since ballooned to as much as $624 million for seven matches between June 13-July 7.
When the MRDT was announced three years ago, a government news release said” “The temporary tax could generate approximately $230 million in revenue over seven years.”
Question of priorities
Sports economist Victor Matheson of the College of the Holy Cross in Worcester, Mass., said in an interview that tourism taxes have been popular in the U.S. to pay for hosting major events and building new stadiums. It is sold as a tax that locals don’t have to pay. However, in Vancouver’s case, most of the money will have to be raised after the World Cup.
“Money you get today is worth more than money you get in the future,” Matheson said. “Of course, bills you have to pay today are more expensive than bills you have to pay in the future.”
It is also a question of priorities, Matheson said.
“You could have passed a 2.5% tax and said, ‘hey, let’s finance affordable housing with this. Let’s finance transportation with this. Let’s finance parks and recreation with this,’ and instead this is being targeted towards basically a three or four-week party here when FIFA is in town,” Matheson said.
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