Toronto is gearing up to welcome the world as it prepares to host six matches of the FIFA World Cup 2026, a monumental event that promises not only to showcase the city’s global appeal but also to leave a lasting legacy. This ambitious endeavor, however, comes with significant costs, intricate planning, and the promise of transformative opportunities for local communities and businesses.
The $380 Million Investment: Breaking Down the Costs
Hosting a global spectacle like the FIFA World Cup is no small feat. The total estimated cost for Toronto’s involvement in the tournament is $380 million, encompassing operations, security, and necessary capital improvements. Of this amount, $201.4 million will be covered by contributions from federal and provincial governments. The City of Toronto is tasked with funding the remaining $178.6 million—a substantial burden that has prompted creative financial strategies to avoid impacting property taxpayers.
One of the most critical elements of the city’s financial plan is a temporary increase in the Municipal Accommodation Tax (MAT), rising from 6% to 8.5% for a 14-month period beginning in June 2025. This move is expected to generate an additional $56.6 million, covering more than half of the remaining funding requirement.
Leveraging Tourism and Economic Growth
As the most-watched sporting event globally, the FIFA World Cup represents an unprecedented opportunity to boost Toronto’s economy. An influx of over 208,000 overnight visitors is anticipated, bringing substantial revenue to the local hospitality and tourism sectors. Hotels and short-term rentals will experience a surge in demand, and increased room rates will ensure that the MAT adjustment minimally impacts the city’s competitiveness as a tourist destination.
Beyond the immediate financial benefits, the event is expected to elevate Toronto’s international profile, cementing its reputation as a world-class city capable of hosting major global events. The city’s tourism and hospitality sectors are predicted to enjoy long-term benefits, driven by the enhanced visibility and prestige gained from hosting the World Cup.
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Transforming Infrastructure and Public Spaces
Preparations for the tournament include significant investments in infrastructure, particularly upgrades to the Toronto Stadium and training sites. The decision to reduce training site requirements at Centennial Park has already resulted in notable cost savings, allowing funds to be reallocated to other essential areas such as stadium improvements.
A key player in these upgrades is Maple Leaf Sports & Entertainment (MLSE), which has committed to reinvesting its revenue share from commercial activities into stadium enhancements. These improvements aim to meet FIFA’s stringent requirements while providing lasting benefits, including better technology and an improved fan experience.
Empowering Local Communities Through Social Procurement
The FIFA World Cup is not just about soccer; it’s also an opportunity to drive meaningful social change. Toronto’s Social Procurement Policy is leveraging the event to create job opportunities and support local businesses, particularly those owned by Indigenous, Black, and diverse communities.
Major contracts, such as those for temporary stadium seating and hospitality services, include requirements for workforce development plans. These plans emphasize employment for underrepresented groups, apprenticeship programs, and subcontracting opportunities for diverse suppliers. This approach not only fosters equity but also strengthens Toronto’s labor market by building skills and creating pathways for career growth.
Focus on Youth Employment and Skills Development
A standout initiative tied to the World Cup is the Community Workforce Development Program. This program targets youth from Indigenous, Black, and other equity-deserving groups, providing them with access to training, educational pathways, and employment opportunities in sectors such as hospitality, tourism, and event management.
Programs like the Toronto Youth Job Corps and Toronto Youth Partnerships & Employment are being integrated into this effort, ensuring that young people facing barriers to employment can gain the skills and experience needed to thrive. By focusing on long-term career growth, the initiative aims to leave a lasting legacy of empowerment and inclusion.
Creative Revenue Streams: Beyond Taxes
In addition to the MAT increase, Toronto is exploring other revenue opportunities to offset costs. These include revenue shares from World Cup merchandise sales, music royalties, and premium ticketed events at the FIFA Fan Festival. Private donations, driven by the FIFA World Cup 2026 Champions Table initiative, are also expected to play a crucial role in covering expenses.
The Champions Table, led by Toronto’s mayor, is bringing together business leaders to raise funds for the event. This initiative is aligned with FIFA’s Commercial Rights Guidelines, ensuring that all contributions directly benefit the city and its communities.
Challenges and Lessons Learned
Despite the promise of economic and social benefits, hosting the FIFA World Cup presents significant challenges. Cost overruns remain a risk, with some capital expenses, such as those for stadium upgrades, exceeding initial estimates. However, measures like reallocating savings and collaborating with FIFA and vendors to reduce scope are helping to mitigate these pressures.
Toronto is also drawing on lessons from previous large-scale events, such as the Pan American Games, to enhance transparency, governance, and community engagement. Early Indigenous consultations, robust financial oversight, and proactive community involvement have been identified as best practices to ensure the success of the tournament.
A Legacy Beyond 2026
As Toronto counts down to the FIFA World Cup 2026, the city is poised to achieve far more than hosting a series of soccer matches. The tournament represents an opportunity to redefine Toronto’s global identity, strengthen its economy, and uplift its communities.
Through careful planning, strategic investments, and a commitment to equity, Toronto aims to leave a legacy that resonates long after the final whistle blows. While challenges remain, the city’s bold vision and innovative approach offer a compelling blueprint for hosting global events in a way that benefits all residents.
Photo of the portrait: Depositphotos
