Kelowna hotel association not taking official stand on new short-term rental restrictions

Through all the controversy surrounding the crackdown on short-term rentals in BC, the Kelowna Hotel Motel Association never took an official stand.

"As hoteliers, we're great believers in competition and short-term rentals like Airbnb are part of the competition," said Edan Fay, the new president of the Kelowna Hotel Motel Association.

"As long as short-term rentals are licensed and play by the rules, we're fine with short-term rentals."

And the rules are changing big-time for short-term rentals starting May 1.

The province will restrict short-term rentals to an owner's principal residence and either a secondary suite or accessory dwelling unit on the same property such as a carriage or laneway house.

The new rules effectively put the kibosh on private short-term rentals that are run as businesses because the owner doesn't live in the unit and rents it out exclusively for short stints -- like a hotel -- to maximize revenue.

Some owners also purchased multiple units especially for short-term rentals.

Kelowna has about 1,200 licensed short-term rentals, but the real number is estimated to be about double that.

Of the 1,200 licensed, 500 are in principal residences that can continue to be short-term rentals under the new rules.

The province's clampdown on short-term rentals is a effort to turn those units into long-term rentals for residents of BC who need more permanent housing while the the province is experiencing a housing shortage.

Kelowna also has a housing shortage and is complying with the province's short-term rental restrictions.

Some municipalities in BC are asking for exemptions saying they need short-term rentals to keep tourism vibrant in the wake of not having enough hotel rooms.

Fay said it's tricky to say whether Kelowna has enough hotel rooms or not.

The association has a membership of 24 hotels and motels with a total of around 3,000 rooms, but there's a total of about 33 hotels and motels in the Central Okanagan with around 3,800 rooms.

"It's a pyramid," said Fay.

"In July and August hotels are super busy and may not have enough rooms for the demand. But for the rest of the year, there are vacancies. That's why part of our mandate is to encourage people to come in the shoulder seasons when there's availability."

Fay is also general manager of the 70-suite The Royal Resort in Kelowna on the lagoon beside the Delta Grand hotel.

"Personally, The Royal hasn't seen much of an impact (in relation to short-term rental rule changes)," he said.

"Our bookings pacing is similar to last year and prices are similar to last year, too."

Fay is optimistic for a good summer season of tourism in Kelowna.

"It's an amazing place to visit," he said.

"But, I don't have a crystal ball. Our biggest concerns are the talk of drought this summer and another bad summer for wildfires. We're hopeful neither will happen and we have a great hospitality season."

Wildfires, smoke, a landslide causing the closure of Highway 97 for two weeks and a brief tourism ban, all last summer, have spooked tourists.

Visitors tend now to book last-minute when they know the weather will be good and there are no other problems on the horizon.

"I understand, people are spending their money and they want to be careful, but it does mean it's hard to plan," said Fay.

Fay is also vice-chair of Tourism Kelowna's board.

Before becoming president this month of the Kelowna Hotel Motel Association, he was on the board for almost a decade.

Here's the full association's board for 2024-25:

- president: Edan Fay, The Royal Resort

- vice-president: Cedric Young, Hyatt Place

- treasurer: Daniel Ruel, Fairfield Inn & Suites Kelowna

- secretary: Elyse Godard, Hotel Zed

- Shannon Bruckshaw, Delta Grand

- Lee Drennan, Comfort Suites

- Steve Carroll, Fairfield Inn & Suites West Kelowna

- Michael DellaFortuna, TownePlace Suites by Marriott West Kelowna

- Christa Park, Royal Anne