Kelowna Council Urges Province to Lift Short-Term Rental Restrictions

BREAKING: The city of Kelowna, B.C., is pushing for provincial approval to ease restrictions on short-term rentals, a move that could revive the struggling tourism sector ahead of a critical summer season. In a decisive meeting on Monday, the city council voted to request a partial exemption that would permit short-term rentals in designated buildings, a much-needed lifeline for local businesses.

Local winery owner Darren Sawin of Priest Creek Family Estate Winery expressed urgency for the change. “We’ve been down,” he said. “We’re really lacking the tourists.” Sawin blames the slowdown on provincial restrictions imposed in early 2024, which have significantly impacted visitor numbers.

If approved, the new exemption would allow buildings like Discovery Bay and the new Aqua highrise to apply for short-term rental permits. “It’s a good start,” Sawin emphasized, highlighting the potential for increased tourist accommodation that is crucial for the local economy.

Kelowna’s deputy mayor, Rick Webber, supports the initiative but cautioned against a full exemption. “We must strike a balance between short-term and long-term housing,” he stated. The city has worked hard to increase the rental vacancy rate, which must remain above 3% for two consecutive years before the province will consider fast-tracking approvals. Currently, the earliest Kelowna can apply is in November 2026.

The city is not waiting idly. Council members are lobbying the province to expedite the process, especially with major events like the Memorial Cup, B.C. Summer Games, and two CFL games approaching. “The city is working hard to bring all these great events and bring tourists to town,” Webber added. “So we need to open up more spaces for guests to stay.”

Tourism recovery is vital for local businesses, with Sawin noting, “It would be life-saving for a lot of our local businesses, our local restaurants, our wineries, anybody that has built a business around tourism.” The growing anticipation for summer tourism underscores the urgency of this situation for Kelowna residents and business owners alike.

As the city navigates this complex issue, the future of short-term rentals in Kelowna hangs in the balance. Residents and businesses are hopeful that the province will recognize the need for immediate action, allowing them to regain their footing in a competitive tourism landscape.

Stay tuned for more updates on this developing story as Kelowna’s council continues to advocate for its local economy and tourism sector.