It’s a question that has dogged the capital of the country, Toronto, for decades.
Now, a study has found that some hotels in the city are costing Canadians less than they should.
According to the University of Toronto, some hotels have a premium of more than $200 a night.
And that’s just one example of the way hotels are being priced out of Toronto.
“It’s just an absolute nightmare for the average consumer to be paying the same amount for a hotel room,” said Rob Bower, the study’s lead author.
“It’s not a great situation for the city’s overall economy.”
Bower said the study has the city looking at ways to fix the problem.
“We’re really looking at how to make sure that when people come to the city, they have as much of an opportunity as possible to have their choices of hotels and restaurants, but they also have the option to have the choice to have a low-cost hotel,” he said.
“If they don’t have that option, they’re more likely to make the wrong choice.”
Bowers says one way to solve the problem is to lower the hotel room tax, a provincial tax on hotel stays that is levied on hotels and other businesses.
Bower says the city is working on that proposal.
But he said there are a lot of other problems with the hotel tax.
“The other thing that is a bit of a problem is the way it’s being applied,” he explained.
“So the way that we are taxing the hotels, if you think of it as a sales tax, it’s just a sales Tax.”
The study comes after the Toronto District School Board last week announced a new system for dealing with hotel guests, which includes charging guests a $100 surcharge for each room they stay.
According to the new system, the surcharge will be waived for guests staying at the Holiday Inn, Hotel Indigo and other hotels.
That means there are only 10 of those hotels in Toronto that are being charged that surcharge.
The Toronto District Board said the change will give guests a better idea of whether they are being treated fairly.
“It gives people the ability to make an informed decision, and that’s the important thing,” board chair Anne Marie Aikins said.
The board’s announcement came after a new report showed the city spent $9.4 million on hotel room subsidies last year.
The cost to taxpayers was estimated at $1.1 billion.
But Bower says that figure is an underestimate because many of the subsidy payments are in the form of advertising and other forms of public relations.
The city is also considering changing how the hotel subsidy payments work.
Bower estimates that some hotel rooms in the Toronto area are costing consumers $1,000 a night and that some of those rooms have been on the market for at least a year.
“Some hotels are selling the rooms that they’re selling for much less than the advertised price,” he noted.
“There are some hotels that are actually making the difference between paying their guests $1 per night and the advertised rate.”
He said there’s also a lot more room in the market than the city was previously estimating.
“When you talk about the number of rooms that are available, they are not all being used,” he added.