It’s a basic principle of economics that price controls negatively affect supply. But apparently that did not occur to the BC government when they decided to clamp down on Airbnb entrepreneurs. That, combined with the tapped out marginal consumer saying no to outrageous hotel and restaurant prices, is having some unpleasant effects.
Kelowna Boat Rentals has been booked solid in past years from July through August, but this year is different.
“Business has definitely been a little down this year. I think it’s mostly because of that Airbnb ban. That seems to be it. It’s kind of a ghost town down here compared to usual,” said Tom Entwistle, manager at Kelowna Boat Rentals.
“Last year was slightly slower, but we were still pretty much fully booked every day, and then this year we are at about 70 per cent capacity during the weekdays,” said Entwistle.
Just got back from a week and a half in the South O. Can confirm, that business is off a little, but our luxury resort was full on the weekends, that’s new! That tells me that there is a small percentage of people that are willing to pay a little more than the other hotels, our place runs about $500/night, the other hotels on the lake, Coast, Holiday Inn, Watermark, around $300/night, then the cheaper sweat boxes below that. No doubt, the ban on ABnBs is having an effect.
That said, we were in Penticton downtown on Sunday night for dinner out. It was a ghost town. Campgrounds were full, but they pack their own food. A couple of brewery/restos were shut down too. There’s no doubt that its having a harder effect on Penticton and Kelowna. Local reports are the Tourism business is off 30% from previous, wine tours are down too, probably their biggest industry now.
The ABnBs got totally out of control. There is a real lack of affordable accommodation for the typical renters, not sure what the perfect solution is, but what was happening before, had a disastrous side effect of unaffordability for any monthly rental unit.
The effects of the ban desired, cheaper rents, may not happen now, as many do not and will not be a landlord, under the current communist BC regime, which sides with lowlife renters almost always, lacking any common sense for landlords that get abused by the scumbag renters. As far as cheaper condos on the market, that has yet to be seen, and may never happen, due to the desirability of living in the Okanagan, and the Lower Rainland, despite the current communist regime.
DanBC,
I live on the side of a hill between Kelowna and Lake Country, near the Kelowna airport.
I can confirm that your assessment is fairly accurate.
The regional and Provincial parks are having a good year, with RV and tent spots increased from last year.
Hotels are down because, after lobbying to stop short term rentals, their gouge prices aren’t working for people who can’t afford it, and who certainly can’t afford what you did.
As for me, I just live simply and enjoy my lovely view and the creek that runs just behind my humble bungalow.
Believe me, I’m not paying that rate, but make a little from those that DO pay………….staying in the OK has always been about the extremes, either staying with family, paying thru the nose during the summer, or reasonable on the shoulder seasons.
Always been popular with the RV crowd there, but there again, are limits to how many can camp.
We were going to move to the south country, but, realizing that we would lose our doctor, have regular ER closures, the local water system was awful, RE was way overpriced, and every trip for decent shopping was 45 minutes away, decided to stay put for the time being until many of these change.
Its beautiful country.
“… not sure what the perfect solution is, …”
Sure you do, it’s called the free market.
And banning AirBNBs solved the homeless problem too, right?
JD,
Here in Kelowna, they set up some shitty atco trailers on the highway by car dealerships mid town, put up a fence, and call it housing the homeless. Great success! Housing old useless people by the way. Meanwhile, the tweakers live in nice wet facilities in town, near schools. Priorities.
Short term rentals are perfect for large families (who are discriminated against in this “two children is enough” world). Some of them are also set up for specialized medical needs e.g. places with dedicated circuits in the bedroom for home dialysis or with beds you can get the feet of a patient lift under so someone can be transferred between bed and wheelchair with a lift. These sorts of things are just not available in traditional hotels. Banning short term rentals has affected the travel potential for large families and people with specialized needs.
The nihilists in charge prefer 0-1 child per woman to bring their glorious green future into being.
Explain the concept of cause and effect to a liberal.
I’ll wait.
You can’t explain anything to a liberal.
Our favourite campground is usually booked to at or near capacity during summer weekdays and at overflow on weekends, even through covid, but not this year.
People are unsure of the future so seem more cautious with their spending.
Who can blame them as many families are getting hit with higher prices, skyrocketing mortgage costs and rents thanks to the inflation creation program called the federal government, which now tells us what and how to think, to not believe reality, as they talk tough, making “plans” while hiding from voters, happy to censor and shut us up. Our Cowardly New World.
The NDP and their NGOs used to push tourism as the replacement for forest industry jobs they eliminated to save forests for future wildfire events. During Covid, they killed it off along with restaurants. Their attempt at affordable housing above is having similar consequences. When it comes to pimping and creating poverty they are over-achievers.
Accommodations, car rentals, fuel and the price of restaurant food have gone nuts in this country. They’ve all priced themselves awaaayyyy out of our league.
Car rentals are awful everywhere, not just here in Canadastan. $100 a day easy, for our last Hawaiian appearance, as socialism takes a bigger and bigger slice there.
As for here, the interior restaurants were all over the map, but, safe to say, many are charging mid-30s for a pasta meal………….pasta……… and over $50 for any steak. The future looks bleak for that industry thanks to labour costs, food costs, energy costs, and a consumer that has reached its limit of getting ripped off.
$28 for a plate of nachos………………I’m not kidding. No, we didnt ‘bite’
Who Will Rid Me of These Thriving Capitalists?
Crushing private enterprise is Job #1 for every liberal government.
One of my best friends has a wine tour business (Roots and Vines) in Kelowna. He had 1 booking Friday and 1 booking Sunday of this past long weekend. Pre CV19, he had 4 drivers working full time, booked from 10:00 am to 9:00 pm daily. He may not be able to keep the wheels and fuel turning much longer and has said that the AirBnB has been the biggest factor in the drop in business. The hotels have jacked the prices as they are one of the only players in town now. The Gov has shot the golden goose, the golden eggs are going the way of the Leprechaun’s gold at the end of the rainbow.
The explosion of BNBs in BC is a direct result of the NDP’s ridiculous new rules for residential tenancies.
Maximum rent increases for last 5 years under 2% a year, and much more restrictive rules for evicting a tenant. The NDP’s demonization of landlords has caused people who own rental property to think twice before being subject to the Residential Tenancy Branch. BnBs are not covered by RTB rules.