When the owners of The Mission Creamery in Kelowna, B.C., decided to launch an ice cream business, the location they chose was a strategic one.
“We knew we wanted to be a big part of the community. We also knew we needed to be in an area where there would be short term rentals,” said co-owner Francine Horne.
The location Horne and her husband Mike chose was at the newly-constructed Aqua Waterfront Village in the city’s Lower Mission area.
The development was zoned for short-term rentals but midway through construction, the province implemented new restrictions on short-term rentals in an effort to address the housing crisis.
The restrictions, which went into effect in May 2024, meant the Aqua Development would not be permitted to operate on a short-term rental basis as originally intended.
“Panic. Panic set in,” Horne said.
Horne said they quickly had to pivot in their marketing and in their product by frequently changing ice cream flavours to keep locals coming back.
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However, they can’t help but wonder what business would have been like had those restrictions not gone into place.
“It would be significantly different,” Horne said. “The flow of traffic, the flow of foot traffic would be much higher.”
At the nearby Playa Del Sol complex, tourism numbers have significantly dried up.
“It’s quiet. Summer used to be booming here, very vibrant community feel everywhere. You had a lot of tourists,” said Leanne Weintz, who owns Okanagan Vacation Rentals Management. “This year it feels very sombre.”
The nearly 300-unit building has operated on a short-term rental basis for nearly two decades.
Weintz has managed dozens of the units for years and says it’s been difficult to see the numbers dwindle in such a significant way.
“It’s really heartbreaking because tourism is what Kelowna thrives on,” Weintz said.
She added that she has fielded many calls over the summer from disappointed would-be-tourists, many she said expressed disappointment in the lack of short-term rental accommodation options.
“They’re expressing they can’t find accommodations anywhere in Kelowna,” Weintz said. “They are stating they will have to go elsewhere until these restrictions are lifted or changed.”
Provincial legislation stipulates that once the vacancy rate stays above 3 per cent for two consecutive years, municipalities can apply for an exemption to those restrictions.
In Kelowna, where the vacancy rate is currently at 4.5 per cent, that two-year mark could be in the later part of 2026, but whether the city will opt out isn’t yet known.
Kelowna’s mayor said the city is monitoring the situation closely, adding that it is looking forward to official tourism numbers coming out later this fall.
“This is something that we will have future discussions about and I look forward to those future discussions but where those discussions go would be inappropriate for me to comment on at this time.”
Dyas said the city is monitoring the situation closely, adding that he is looking forward to digesting official tourism numbers coming out later this fall.
While many agree that something had to be done to address housing challenges, those now impacted by the legislation oppose what they call blanket legislation.
“There are several buildings that are purpose built that should be excluded from this. That was what it was here for,” Weintz said.
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