Waterloo Region and Airbnb have come to an agreement that would see rental prices increase in the new year.
Starting January 1, 2020 the company will now collect a four per cent increase from its 1250 hosts in the region.
The additional tax would be added to the bills of Airbnb guests which will help pay for the region's tourism marketing.
Minto Schneider, Chief Executive Officer, Waterloo Regional Tourism says that four per cent over the year would bring in $3.2 million, according to their forecasts.
"The region will not fund us completely and our partners can't fund us completely, cause there just aren't enough pockets in the region, so it helps to have our visitors fund the marketing of the destination outside the area."
She says many other places have done this too.
"We're not by any means the first ones, but we're the first region in Canada to fund with Airbnb. They've already been working in Vancouver, Montreal, Toronto, Ottawa and a number of other cities in Canada."
The tax will also bring Airbnb hosts in line with the region's motels and hotels, who have been paying their own four per cent tax since July.