The Mission Creamery in Kelowna, B.C., faced unexpected challenges after launching its ice cream business in a strategically chosen location at Aqua Waterfront Village. Co-owner Francine Horne expressed the importance of community and attracting foot traffic, particularly from short-term rentals. However, the province’s introduction of new restrictions on short-term rentals, which commenced in May 2024, meant that their location could not operate as intended. This sudden change forced Horne and her husband, Mike, to adapt their marketing strategies and continuously alter ice cream flavors to retain local customers.
Reflecting on the impact of the restrictions, Horne noted that the business experience would have been markedly different without them. The anticipated influx of tourists has significantly dwindled, affecting the overall vibrancy of the community. Local business owner Leanne Weintz highlighted the somber atmosphere, noting that tourism had been a cornerstone of Kelowna’s economy. The decline in tourist activity has created a heartbreaking situation for those in the vacation rental industry, as units that once thrived are now struggling to attract visitors.
Weintz managed numerous units at Playa Del Sol, which had been operating on a short-term rental basis for almost two decades. This year, however, disappointment has plagued her as she fields calls from potential tourists unable to find accommodations in Kelowna. Many expressed frustration at the lack of rental options, leading them to consider alternative destinations until the restrictions are lifted. This sentiment underscores the significant economic implications of the recent legislative changes and the resultant challenges for both business owners and tourists.
Provincial legislation permits municipalities to apply for exemptions from the short-term rental restrictions once the vacancy rate surpasses 3% for two consecutive years. Currently, Kelowna’s vacancy rate stands at 4.5%, suggesting that the earliest possible exemption application would be in late 2026. The city’s mayor is closely monitoring the housing situation and anticipates further discussions as official tourism statistics are released. This cautious approach reflects the complex balance between addressing housing challenges and supporting local businesses reliant on tourism.
While recognizing the necessity of measures to tackle housing issues, many stakeholders impacted by the legislation criticize what they view as a one-size-fits-all solution. Weintz argues for exceptions for purpose-built short-term rental units, as their design was intended to support the tourism industry. This perspective highlights the tension between community needs and the practicality of legislative restrictions that may not consider individual circumstances within the rental market.
As Kelowna grapples with these challenges, the future of both tourism and local businesses remains uncertain. The Mission Creamery’s experience encapsulates the broader concerns of business owners adapting to unforeseen regulations and the community’s reliance on a thriving tourist economy. Discussions on potential exemptions and a more nuanced approach to regulations could be pivotal in determining the city’s path forward in fostering both housing stability and tourism revitalization.
