Global Regulatory Notes (19)
Keep a pulse on global regulatory trends. Canada prepares for 2026 FIFA World Cup; South Okanagan-Similkameen, BC advances bylaw; Kelowna, BC reviews enforcement; Port Colborne, Ontario adopts licensing bylaw; Centre Wellington, Ontario; European Union; Okinawa; Sapporo; Zimbabwe. READ MORE.
Canada
With less than a year until Canada co-hosts the 2026 FIFA World Cup, Toronto and Vancouver are already seeing steep accommodation costs and limited availability.
Vancouver has drawn the sharpest concerns, with early hotel rates soaring and some rooms marked sold out, though officials expect some relief once FIFA releases reserved blocks for teams, media, and VIPs. To ease the crunch, UBC dorms, Airbnb, and VRBO are being tapped as alternative lodging options, with encouragement for new temporary hosts.
Toronto has raised its municipal accommodation tax from 6% to 8.5% through July 2026, covering hotels and short-term rentals, but local hotel rates appear less inflated than in Vancouver. Both cities are preparing large-scale fan events alongside the matches.
South Okanagan-Similkameen, BC
The Regional District of South Okanagan-Similkameen is moving toward stricter oversight of short-term rentals, advancing new bylaws that would replace years of failed temporary-use permits.
The rules, given third reading but not yet adopted, cover areas including Naramata, Okanagan Falls, Rural Oliver, Rural Osoyoos, Greater West Bench, Kaleden, and Twin Lakes. Requirements vary by community. Some properties will need a short-term rental permit, others a business licence, and in some cases both. A final vote is set for Oct. 2.
Salt and Brick, a well-known downtown Kelowna restaurant, is closing its doors on October 5 after seven years, with the owner pointing directly to B.C.’s short-term rental restrictions as a decisive factor.
Casey Greabeiel said the crackdown led to a nearly 30% drop in summer sales, wiping out $300,000 in revenue as group travel and wedding catering dried up. He argued that the policy has gutted tourism in Kelowna, compounding pressures from inflation and wildfires. Greabeiel urged the province to adjust the rules for tourism-dependent areas, warning of continued damage to local businesses if the restrictions remain unchanged. City officials are set to review Kelowna’s STR policies later this fall.
Port Colborne has adopted a new licensing bylaw for short-term rentals, responding to concerns about noise, parking, safety, and neighborhood compatibility.
The rules cap occupancy at two renters per bedroom, up to 10 renters total, with limited exceptions for children, and set a curfew requiring guests to leave by 11 p.m. A new fee structure charges $1,000 to start and $600 annually for most dwellings, while trailers and mobile homes in vacation residential zones pay slightly less. Operators must carry $2 million in liability insurance, maintain guest registers, and display license numbers in listings. A new bylaw officer has been hired to strengthen enforcement, with fines up to $2,000 for unlicensed rentals. Applications open October 1.
Centre Wellington is moving ahead with plans to introduce a municipal accommodation tax (MAT), with unanimous council support and staff now preparing for community engagement.
The tax, typically set between three and six per cent, would apply to short-term accommodations to help fund tourism and local infrastructure. Consultant Kelly Linton recommended creating a municipal service corporation (MSC) to oversee the program, supported by MAT revenue, paid parking, and a share of OLG funds. The MAT is expected to launch alongside a new short-term rental bylaw in 2026, with officials stressing that the tax will ensure visitors contribute fairly to the township’s growth while supporting tourism oversight and safety.
European Union
European Commission president Ursula von der Leyen has put short-term rental regulation at the heart of her housing agenda, telling the European Parliament that tourism-driven housing shortages have become a “social crisis.”
Building on protests in cities like Palma and Barcelona, the Commission confirmed it will table a legal initiative on short-term rentals alongside its new Affordable Housing Plan. The goal is to harmonise host registration, boost transparency, and ensure platforms like Airbnb and Booking share data with public authorities, addressing what officials describe as a fragmented system that allows illegal listings to flourish.
Japan
Okinawa has approved a 2% nightly accommodation tax, effective April 2026, that will apply to hotel and inn stays, capped at JPY2,000 per night.
The new levy is expected to fund tourism initiatives including landscape preservation, worker support, and improved safety for marine recreation, which remains one of the region’s biggest draws.
Sapporo
Sapporo will introduce an accommodation tax in April 2026, applying to hotels, inns, shared lodgings, and private rentals such as minpaku. Guests will pay the fee per night through their lodging provider, which will then remit it to the city.
The measure comes alongside a separate Hokkaido-wide tax, meaning visitors will pay both levies when staying in Sapporo. Exemptions apply for school trips and related educational activities, but most stays will be covered. Revenue will be dedicated to boosting tourism by improving visitor services, enhancing attractions, and supporting sustainable tourism management.
Zimbabwe
Starting in 2026, Zimbabwe will tax Airbnb, ride-hailing apps, and other digital platforms through a new e-commerce system designed to expand compliance and capture revenue from online services.
The initiative will apply to both domestic and foreign operators, with ZIMRA using local banks to monitor transactions and ensure that earnings tied to Zimbabwe are taxed. Commissioner Misheck Govha emphasized that all traders, regardless of size, must register, warning that penalties will apply to those who fail to comply.
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