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B.C. winery rallies opposition to short-term rental restrictions, says business down dramatically

"This year we've noticed a dramatic downturn in traffic. It has really impacted our sales. I've had to cut staff," says winery owner.

The cries for relief from short-term rental rules in Kelowna are getting louder.

Visitor numbers are down and while several factors are at play, fingers are being pointed at the new restrictions that took effect right before the start of the summer tourism season.

Priest Creek Estate Family Winery in Southeast Kelowna is holding a rally, along with B.C. Conservative Kelowna-Mission election candidate Alexandra Wright. They will be demanding a reversal of provincial and municipal restrictions.

“This year we’ve noticed a dramatic downturn in traffic. It has really impacted our sales. I’ve had to cut staff,” said owner Jane Sawin. She estimates traffic has dropped at least 30 per cent.

The Conservatives aren’t the only ones taking the NDP government to task for the crackdown. BC United leader Kevin Falcon was in Kelowna Monday. He said the opposition warned the government that it would impact tourism.

“We put forward four amendments that could have solved a lot of these problems by recognizing you have to have more flexibility, particularly in area that rely on tourism,” said Falcon. “We warned them that hotel room rates would become completely unaffordable for those that are wanting to tour into a beautiful region like Kelowna, because of the lack of spaces available.”

“They didn’t listen and now we’re seeing all those problems come to life.”

The number of short-term rentals in Kelowna dropped drastically not just because of the provincial rules that restrict them to an owner’s primary residence, but also because the city only grandfathered in suites that already had a license.

“I do know a few people that have licenses their Airbnbs, and their bookings are all down” said Sawin. “They’re being questioned when people email them as to why they still have an Airbnb advertised. Because they’re not understanding that whole licensing piece either.

“So, A the numbers are down, but also people aren’t looking to book Airbnb because people think we’re not supposed to have them.”

Sawin points out that wineries in West Kelowna are not seeing as dramatic a drop in visitors.

While West Kelowna stayed the course in adopting the provincial regulations requiring STRs in principal residences only, it did make an exception for tourist and resort zones such as Seclusion Bay, Barona Beach, the Cove, Casa Loma Resort, Boucherie Beach Cottage, Paradise Escapes and 3060 Seclusion Bay. West Kelowna was allowed to do so because it has a rental vacancy rate above three per cent, unlike Kelowna’s, which was much lower.

Castanet had an interview scheduled on Monday with Kelowna Mayor Tom Dyas to talk about the tourism downturn, but he cancelled. The city said he would comment when he has more concrete summer visitors numbers.

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