From steamship cruises to beachfront resorts to luxurious cottage Airbnbs, vacationing in Muskoka has changed a lot over its long history.
But perhaps the starkest change has been its price tag, where a cottage getaway can cost tens of thousands. Now, one resort owner worries a tax may further cement Muskoka as a pay-to-play destination.
The Lumina Resort has been in Ty Hungerford's family for four generations. The 102-year-old Lake of Bays resort is among those impacted by the township's new four-per-cent municipal accommodation tax (MAT), adopted earlier this month.
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Hungerford said the tax may discourage tourists with less disposable income from visiting.
"Cost is the No. 1 factor for people coming here. They're not buying multimillion-dollar cottages on the lakes. They can't afford that," he said. "So, they don't have an unlimited well of money to spend on a vacation. It's going to look increasingly unaffordable to come vacation in Muskoka."
Lake of Bays is the latest Muskoka community to introduce an accommodation tax, alongside Huntsville, Bracebridge and Gravenhurst.
Morgan Lonsdale, economic development officer with the Township of Lake of Bays, said the Jan. 1, 2026 implementation date was reflective of a strong and growing accommodation market.
"The accommodation sector in Lake of Bays is unique, comprised largely of long-standing, multi-generational operators, making it a strong and resilient industry," she said. "The short-term rental market is also growing steadily."
Lonsdale said the township predicts the accommodation tax will raise $1.5 million in annual revenue, but unlike Huntsville - which had used its revenue to fund tourism initiatives and other programs like physician recruitment - Lake of Bays, for the first year of the MAT, will put the revenue into reserves.
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"This approach allows the township ... to assess and understand the anticipated revenue stream," Lonsdale said in a written statement, adding the township is looking to develop a tourism strategy to identify priorities on which future revenues could be spent.
Lonsdale said the township hopes to have the strategy completed in 2026, with implementation in 2027.
Regardless of revenue, Hungerford said the accommodation tax will punish both small business owners and their customers by increasing costs when many people are already financially stretched thin.
"We see it as an attack on middle-class families that come to Lake of Bays and spend their hard-earned money," he said.
Hungerford said Lumina Resort typically increases its prices to adjust for inflation and cost of living, working out to roughly one or two per cent each year. With the implementation of the MAT, he said guests at Lumina are likely to see a six per cent price increase.
He fears that may drive some guests out of the market.
"We've argued from the beginning that some may not come at all, while others will probably stop at Costco on the way instead of shopping at the Dwight market," Hungerford said.
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Despite the township's efforts at consultation, Hungerford felt the MAT was an inevitability. Still, he said there could have been consideration of a carve-out for the area's legacy resorts and small hospitality businesses, which he said are struggling in a stagnant economy.
"I can see the case for an Airbnb that's $10,000 per week paying some sort of tax, but for middle-class families from southern Ontario ... it's going to be really tough," he said.
"You can go book a vacation to an all-inclusive in a country without fair labour laws for much cheaper and it's going to look even more attractive now. I don't know why we're taxing Canadians to travel in Canada."
Lonsdale said the township is aware of the concerns raised, but said stakeholders "generally recognize the potential benefits," adding that the township will continue to engage and be transparent on how revenues are spent.
Jesse Cole is a freelance reporter writing with Metroland. This Huntsville Forester article was written under the Local Journalism Initiative. The Local Journalism Initiative is funded by the Government of Canada.
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