‘They wouldn't lift a finger’: Kelowna MLA slams NDP for delaying short-term rental exemptions

Kelowna Mission MLA Gavin Dew has accused the provincial NDP government of imposing "one-size-fits-all top-down rules" on short-term rentals, ignoring Kelowna's unique needs and harming the local tourism economy.

In an interview with KelownaNow, Dew highlighted the city's high vacancy rates, which was sitting at 3.8% last year and is around 5% now.

He said the high rate should allow it to opt out of strict provincial regulations, but bureaucratic delays will force Kelowna to miss the entire 2026 summer season.

Dew explained that under current rules, municipalities must exceed a 3% vacancy rate for two consecutive years to gain more local control.

"Even though we are far in excess of the threshold right now, we actually have to wait for the official statistics to come in," Dew said.

In early November, the Kelowna City Council adopted a staff recommendation to create a short-term rental subzone designation that would allow exemptions in select larger developments with a set of conditions.

That would include buildings like Aqua, Movala and Brooklyn among others.

However, council was told the city is waiting on CMHC vacancy rate data to be released in order to submit an exemption from the principal resident requirement, which limits short-term rentals to the host’s home plus one secondary suite or accessory dwelling.

Dew noted that the city has until March 31 to submit their exemption request, but opt-outs would not be effective until Nov. 1, 2026.

Dew said the province's refusal to allow for an earlier exemption date means Kelowna will end up "missing a whole season, an entire summer season."

Both mayor Tom Dyas and Dew have said they are pushing for earlier exemption in order to allow more short-term rentals in the city in time for a busy tourist season, which will include the Memorial Cup, a pair of BC Lions games and the BC Summer Games.

The Conservative MLA detailed three "incredibly simple" proposals he made to the government to advance the opt-out effective date to May 1, 2026.

These included amendments to Bill 25, a private member's bill he tabled earlier this month, and a cabinet order-in-council. All were rejected, even as the government issued an order-in-council last week tweaking short-term rental rules, but excluded Kelowna's request.

"They literally did a cabinet order about short-term rental, but they wouldn't lift a finger to help Kelowna," Dew stated.

Dew emphasized the broader economic fallout, arguing that short-term rentals complement hotels and support an ecosystem of restaurants, cleaners, and maintenance workers.

“That's what people don't understand, it's not just about landlords or property owners. There's a whole extended ecosystem,” he explained.

“You've got the restaurants, you've got the cleaners, you've got the handymen, you've got the pool maintenance people. You've got this whole universe of people that are part of our tourism sector and are part of that short term rental ecosystem.”

He pointed to projects like Aqua, where owners purchased a unit because it was specifically built for short-term rental.

Dew said those homeowners are "underwater two or $3,000 a month" after the NDP failed to grandfather properties zoned for short-term use.

"When you've got people that have done the right thing in accordance with the law as it existed, and you're all of a sudden ripping the rug out from under them, that sets a dangerous precedent in terms of investment," he said.

Dew said the City of Kelowna has done exactly what the provincial government asked for, including outperforming in terms of building housing inventory and increasing the vacancy rate.

“Yet when they ask, and when I ask the government to make such a minor concession, that will be good for our tourism sector, they're telling us to pound sand,” he said.

Criticizing the NDP's approach as "heavy-handed" and lacking respect for property rights and markets, Dew said the decision sends a negative signal to other municipalities and erodes trust in the government's promises on housing and cooperation.

Dew urged the province to reconsider, noting the short-term rental policy's roots in a hotel association-sponsored report, which he believes overlooks the balance needed for tourism-driven areas like Kelowna.

With another tough tourism season looming, Dew warned of potential restaurant closures and job losses, as visitors seek accommodations elsewhere.

"You really need to know as soon as possible you need a confident signal so you can invest," he said, calling for immediate action to allow planning and recovery.