I went to Niagara Falls this past summer. While the experience was nice, it was also quite expensive. This is because of all of the taxes that are imposed to make money off of the tourists. The nice thing about Toronto as well as Toronto hotels is that they do not charge quite as much. They do have some taxes, but you are able stay at a hotel without paying $200 CAD a night. That makes your stay more pleasant as well as increases the likelihood of you coming back.