As summer rolls on, it doesn't take much to realize that tourism is down in Kelowna this year.
The bridge is running smoothly at rush hour, there’s not many out of province license plates on the road and Kelowna businesses that rely on tourism
Kelowna Boat Rentals has been booked solid in past years from July through August, but this year is different.
“Business has definitely been a little down this year. I think it’s mostly because of that Airbnb ban. That seems to be it. It’s kind of a ghost town down here compared to usual,” said Tom Entwistle, manager at Kelowna Boat Rentals.
“I think it’s harder for people to find affordable places to stay. It’s probably only hotels for the most part, so that’s going to be more expensive instead of affordable Airbnbs."
Provincial legislation now limits short-term rentals to the property owner’s primary resident. In Kelowna, unless you had a current, valid business licence before the legislation took effect on May 1, 2024, operating a short-term rental as a secondary use on your property (i.e. the property is your principal residence) is no longer permitted. No new licence applications are being accepted.
But it remains unclear how those rules are being enforced. In Kelowna, there were roughly the same number as before the regulations took effect.
Entwistle says Kelowna Boat Rentals remains busy during the weekends, but less so mid-week.
The company was busiest during the pandemic and has noticed a steady decline over the last couple of summers.
“Last year was slightly slower, but we were still pretty much fully booked every day, and then this year we are at about 70 per cent capacity during the weekdays,” said Entwistle.
The BC Restaurant and Foodservices Association (BCRFA) says the lack of tourism is negatively impacting B.C. bars and restaurants.
BCRFA president Ian Tostenson said the organization blames struggles in the wine industry, forest fires and negative media.
“You hear things like forest fires, so you hear about Penticton and you go, 'Oh, I guess we are not going to go there this weekend,” said Tostenson.
“I think that’s having an effect on keeping people away, and the fact that wineries are fine, they have lots of wine, but there has been lots of media about how the grape harvest was bad. It’s not affecting this year, but I think wine tourism is probably down.… Tourism is muted and it’s hurting business in the Okanagan in general.”
While business at Kelowna Boat Rentals is down by about 30 per cent, the BCRFA says at least 50 per cent of restaurants across the province are either just breaking even or losing money.
The provincial government told Glacier Media last week fewer people are travelling around B.C., but blamed a broader economic downturn.
“There are a lot of short-term rentals that are still available in the community. I believe hotel capacity is around 80 per cent," said Minister of Housing Ravi Kahlon.
“I think it’s fair to say that there are less folks travelling the province, but we’re seeing that across the country because of pressures of interest rates and global inflation. People are having a tougher time travelling, and to suggest that it’s because of short-term rentals I think is a bit of a stretch."
