Windsor City Council will look at imposing a hotel tax when it meets on Monday.
A report outlining the details of the proposal indicate a 4% tax will be added to rooms rented in the 35 hotels in the city as well as bed and breakfasts and things like Air BNB.
The report suggests the so-called Municipal Accommodation Tax will generate nearly $3-million a year.
Speaking on the Lynn Martin Show on AM800, Mayor Drew Dilkens believes the tax could benefit tourism in the city.
"An opportunity for us to use a tax that isn't charged to the residential tax base," he says. "Like people from Windsor won't really be taxed at all unless you're staying in hotels in your own city. We'll be able to take this revenue and re-invest in our tourism assets to make them even better to drive further visitation."
Dilkens says the extra revenue will be used in all areas of the city to make strategic investments.
"As we continue to build on the historic themes and the assets that we have here, whether it's Sandwich Towne, whether it's everything going on in Walkerville or Ford City and Riverside. We really have opportunities here to tell a great story."
If council approves the tax, it will go into effect in October.
It's estimated the cost for a $120 a night room would be an additional $4.80.