Tourism groups worry as B.C.'s short-term rental rules change

Ralph and Tina Gerlitsch say they've had to rethink their retirement plans due to B.C.'s new short-term rental regulations.

The couple own a bungalow on a leafy residential street in the Glenmore neighbourhood of Kelowna, B.C., and, for the last couple of years, they've also been running a seasonal Airbnb in a downtown Kelowna highrise.

They would rent the apartment to tourists in the summer and students during the academic year. 

"We ran [it] for two years and it was wonderful," Ralph Gerlitsch said.

However, starting May 1, new provincial rules will make such enterprises illegal.

In many B.C. communities, including Kelowna, short-term rentals will only be allowed in an operator's principal residence, and one secondary suite or carriage house on the same property. 

The Gerlitsches say their Airbnb is one of those that will have to shut down. 

"This was our Hail Mary for retirement. It really hurts when somebody at a desk, in government, can tell me what I can do with my property," Ralph said. 

"Don't ask me if I'm angry, but I certainly am."

While the provincial government hopes the rule changes will free up much-needed housing for long-term residents, critics say they are also creating uncertainty for the broader tourism industry with some worrying the Okanagan will become a destination reserved for the wealthy, and businesses will suffer in the process. 

Known for its lakes, beaches and wineries, the Okanagan Valley attracts crowds each year, with more than two million overnight trips to the Kelowna area alone in 2023, according to Tourism Kelowna statistics.

The same agency says the tourism industry has an annual economic impact of $2.4 billion in the Central Okanagan.

That means many businesses have a financial stake in tourists finding a place to stay — and some feel as if the short-term rental rules are limiting affordable accommodation options. 

"Our hands are really tied unless they suddenly open up a bunch of brand new hotels at a decent price," said Krystina Rossworm, whose company offers private tours of wineries and adventure spots in the Lake Country region.