Essex is the next municipality in the region that could see a Municipal Accommodation Tax (MAT) be implemented.
Tourism Windsor Essex Pelee Island (TWEPI) is heading the initiative trying to get each municipality in Essex County on board.
The City of Windsor currently has its own six per cent MAT, which is part of TWEPI's initiative.
The tax is collected by accommodation providers and remitted to the municipality, and half of the net MAT revenue is shared with TWEPI to support tourism promotion and development.
At Monday night's Essex council meeting, a motion was unanimously approved to have administration bring back a report for consideration by no later than August 31, 2025.
Mayor Sherry Bondy says on the surface, TWEPI's proposal is a good idea that would bring in alternative sources of revenue that offsets municipal tax dollars.
"We know that we have approximately a 49 per cent vacancy in our stays here, so maybe we can use that revenue to market more people to come, sounds like more municipalities are getting on board with this Municipal Accommodation Tax, so it could be a step in the right direction," Bondy said.
Currently the municipality has one motel, a glamping site, and a number of short term rentals.
Bondy says revenue could potentially be used for increased bylaw enforcement.
"The tax isn't on our local owner/operators here, it's on people coming to the region, so whether it's signs, bylaw, tourism initiatives, advertising, it might be a good idea to start using those dollars rather than our tax base for tourism," she said.
Other municipalities across the province have their own MAT ranging between four and six per cent.
Bondy says they likely wouldn't like to be on the higher end in the region.
"This report, getting the report, gives us some time to talk to our neighbouring municipalities and say 'what are you going to do? Is this a move that we should go forward with?' because it would make sense to go forward with all the local seven municipalities on board," said Bondy.
Last week, Kingsville council asked administration to prepare a report on the tax.