Hotel prices in Vancouver reached record highs this summer, with the average daily rate (ADR) rising to $330 in July, according to CoStar data. This marks a 7 percent increase from the previous year and comes as the city prepares to host FIFA World Cup 26 next summer. The increase follows province-wide restrictions on short-term rentals, which have limited accommodation options for visitors.
The higher hotel rates have also affected Vancouver’s ability to host large-scale events. The International Convention of Alcoholics Anonymous expected up to 60,000 attendees but only about 35,000 arrived, citing limited accommodations and unaffordable hotel prices. Gregg H. Talley, CEO of Talley Management Group, commented: “The City made a commitment to support events of this scale, yet current hotel pricing and limited availability make it increasingly difficult. There’s growing concern across the global events community about whether future conferences will remain accessible and affordable for attendees. Vancouver has long prided itself on being a vibrant, welcoming, and world-class city—and we want to ensure it continues to live up to that reputation.”
Current regulations in Vancouver allow hosts to rent out only their principal residence and require a business license along with additional compliance measures. No changes have been made by the City of Vancouver or the Province of British Columbia to ease these rules ahead of the tournament.
A recent Deloitte report warns that under existing short-term rental regulations, hotel rates in Vancouver could rise by as much as 200 percent during FIFA World Cup 26. The report also projects a shortage of 70,000 accommodation nights for fans during the event and estimates potential losses exceeding $78 million in economic opportunity for Metro Vancouver and more than $4 million in tax revenue for the province.
Other cities in British Columbia are experiencing similar trends. In Kelowna, despite surpassing housing targets and seeing vacancy rates reach their highest point in two decades, strict short-term rental rules are impacting tourism businesses due to fewer available accommodations and higher hotel prices. Local policymakers are proposing greater flexibility for short-term rentals during major events and an accelerated timeline for communities wishing to opt out of principal residence requirements.
Gavin Dew, MLA for Kelowna-Mission and Critic for Small Business & Innovation stated: “Kelowna has proven it can manage its own affairs to balance housing and tourism, but one-size-fits all provincial rules are putting our summer tourism season at risk. The Province needs to move forward the effective opt-out date from November to May so we don’t miss out on another summer. By allowing municipalities more flexibility around short-term rental rules during major events that create surges in demand for accommodations, we can keep our tourism economy alive, support workers, and deliver the world-class experience for visitors that they expect.”
Across British Columbia as a whole, July’s ADR hit $230—a 6 percent annual increase—while Victoria recorded an ADR of $280 per night after a 9 percent rise over last year.
Research indicates that Vancouver would need a 70 percent increase in hotel room inventory by 2050 to meet projected demand. As an alternative to expanding short-term rentals or increasing home-sharing opportunities among residents—which could help stabilize prices—the city is considering university dormitories or cruise ship accommodations.
Alex Howell, Policy Lead for Canada at Airbnb said: “FIFA World Cup 26 will mark a once-in-a-lifetime event for Vancouver, but surging hotel rates and accommodation shortages threaten to leave thousands of fans without options. A temporary adjustment to rules for short-term rentals is the practical solution to ensure visitors aren’t shut out by record-breaking prices and more locals can realize the economic benefits of hosting.”
Howell added that maintaining restrictive policies may deter visitors and reduce tourism revenue while missing an opportunity for local residents.
