Here is a snapshot of the advocacy work underway on your behalf, along with key political and policy developments affecting BC’s accommodation sector.

As pressures continue across workforce, taxation, development, and major events planning, BCHA remains actively engaged with senior provincial decision-makers to advance practical solutions that support hotel operators across the province.

Workforce and Immigration: Preparing for 2026 Pressures

In January, BCHA met with senior provincial officials to address emerging workforce risks facing BC hotels.

Recent BCHA workforce survey data shows that 71 percent of responding hotels expect employees to lose work authorization within the next 6 to 12 months. With federal reductions to temporary resident pathways and highly constrained Permanent Residency allocations, many properties are anticipating a significant workforce cliff beginning in spring 2026.

While the Province confirmed that a hospitality-specific Provincial Nominee Program stream is unlikely in the near term, discussions focused on pragmatic options, including:

• Refugee claimant employment pathways for regions experiencing acute labour shortages
• Strengthening retention indicators through portable health and pension benefit programs
• Providing additional wage and career progression data to inform policy design

Why this matters: Without targeted adjustments, staffing shortages could intensify in 2026. BCHA continues to press for policy flexibility that recognizes the operational realities of hotels in both urban and regional markets.

Short-Term Rentals and FIFA World Cup 2026

BCHA also met with senior officials in the Ministry of Housing to discuss short-term rental enforcement, data transparency, and accommodation planning for the World Cup.

Government confirmed:

• There is no intention to relax short-term rental regulations for the World Cup or other major events
• Legislative change to loosen rules is not being considered

BCHA emphasized the importance of aligning industry and government messaging with credible data, particularly as STR lobbying efforts intensify in Vancouver, Kelowna, and other markets.

At the same time, BCHA is finalizing a Large Events Visitor Experience and Accommodation Outlook, beginning with with the FIFA World Cup 2026. While focused on the World Cup, the strategy is designed to serve as a legacy framework for future major events in British Columbia.

Why this matters: Regulatory stability and accurate data are critical to protecting regulated accommodation providers and ensuring that large events are managed in a way that supports long-term sector health.

Property Taxation and Hotel Development Viability

BCHA met with senior Ministry of Finance officials to raise concerns about income-based assessments, taxation during multi-year construction periods, and the impact of high commercial classifications on hotel viability.

Revenue-linked assessments can capture short-term demand spikes, such as major events or emergency accommodation, without reflecting long-term profitability or financial risk. For large-scale projects, particularly those exceeding $400 million in capital costs, this volatility can undermine feasibility.

While broad tax reductions are unlikely in the current fiscal climate, discussions were constructive and focused on targeted tools, including:

• Time-limited tax deferral mechanisms
• Improved understanding of existing municipal deferral options
• Direct engagement with BC Assessment on methodology and sector impacts

Why this matters: Tax structure directly influences development decisions. As demand projections point to significant long-term room shortages, ensuring new hotel projects remain viable is essential to BC’s competitiveness.

BCHA will continue providing case examples and data to inform this work.

Economic and Political Signals to Watch

Several broader developments are shaping our sector’s operating environment:

US Border crossings: Passenger vehicle crossings by BC-plated vehicles at major Lower Mainland borders declined 36 percent year over year, reinforcing trends affecting cross-border tourism and discretionary travel.

Hotel development pipeline: Vancouver has approximately 5,800 hotel rooms in various stages of development. While encouraging, long timelines and high capital costs mean not all projects will proceed, and near-term supply remains constrained.

Provincial politics: The BC Conservative Party leadership race concludes May 30. Current polling suggests a competitive environment, with the BC NDP holding a narrow lead. The Legislature resumes February 12, with the provincial Budget scheduled for February 17.

A closely contested political landscape underscores the importance of clear, evidence-based advocacy for the accommodation sector.

Legislative and Regulatory Updates

BCHA continues to monitor legislation affecting employers, including:

• Bill 11: Employment Standards Amendment Act, 2025, which eliminated the requirement for doctor’s notes for short-term illness
• Bill 30: Employment Standards (Serious Illness or Injury Leave) Amendment Act, aligning provincial leave provisions with federal EI sickness benefits
• Bill 25: Municipal Affairs and Housing Statutes Amendment Act, expanding housing supply measures and enabling First Nations to regulate short-term rentals

Implementation and regulatory follow-up remain ongoing.

Continuing the Work

These files represent only a portion of the advocacy underway. From workforce sustainability to taxation reform and large event planning, BCHA continues to advance practical, data-driven solutions that reflect the realities of operating a hotel in British Columbia.

If there are emerging issues affecting your property or region, we encourage you to reach out. Your insight strengthens our advocacy.