Kelowna’s hotel stay numbers left rest of Okanagan, Kamloops in the dust

Kelowna saw an exceptional increase in hotel stays last year compared to the rest of the Thompson and Okanagan region.

Kelowna’s hotel occupancy was up 3.8 per cent in 2024 compared to the year before while other areas nearby did not see similar growth.

Kamloops’ hotel occupancy was down by 5.7 per cent, North Thompson Okanagan saw a dip of 0.3 per cent, and South Okanagan saw a slight increase of 0.1 per cent.

One of the busiest months of the year was August and Kelowna had an 81 per cent hotel occupancy rate, up 10 per cent from August 2023.

Some might think to credit Kelowna’s exceptionally strict short-term rental regulations with the increase in hotel occupancy, but a recent report to Kelowna City Council doesn’t necessarily agree.

“The data does not provide clear results. Both tourism and housing markets are complex, with (short-term rental) regulations being only one factor. It is unclear if these restrictions improved housing affordability or impacted tourism. . . Economic factors and extreme weather have affected tourism in Western Canada, creating uncertainty,” the report said.

As far as room prices go, South Okanagan was one of the only regions where room rates dropped in 2024.

The average room rate for a hotel in South Okanagan was down by 1.3 per cent to $180. Kelowna’s rates went up by 3.4 per cent to $189, Kamloops’ rates went up by 3.9 per cent to $154, and North Thompson Okanagan had an average rate increase of 2.3 per cent to $171.