Basically hotels are pressuring the city and politicians don't understand that more supply means prices don't get driven up as high by unsatisfied demand. That and crusty old guys get their noses bent out of shape when neighbourhoods have activity and life in them. Still too many old guys in politics and they are disproportionately the voters so this is reality for quite some time.
Buy with caution if you are investing in Airbnb. Canmore is a good market to review when it comes to how a town can tighten zoning regs. Also, I highly recommend buying at least a month membership to AirDNA to understand Kelowna's seasonality, ADRs, ect. Well worth the $20. But, yes, to be thinking Airbnb in this market is the right idea, just make sure you onside with the town / condo corp's rules.
Don’t rely on AirBnB in Kelowna unless you plan to make some extra income in your own personal residence but NOT as an investment.
AirBnB is an illegal and certainly undertaxed (but often tolerated or poorly enforced) operation in most Canadian cities as residential zoning usually implies a minimum of six month rentals. Hotels pay triple to quintuple the property taxes per night than an avg AirBnB operator. Thus they cheat on property taxes .. again tolerated and often reluctantly tolerated.
Few cities have specific AirBnB rules, such as Whistler, Canmore, Vancouver and now Kelowna. There may be others.
I am from Kelowna and have been running bnb's for the last 3 years however the council just reviewed the city staff proposal which promotes a new bylaw restricting STR similarly to Vancouver. (Is expected to be approved in Q1 2019)
Keep in mind the Kelowna tourism market doest have 12 month window like Vancouver, Victoria or Canmore. (Just May to Aug)
Long story short this spring we won't be able to it in most areas except only in one that is zoned for STR. (Even there the city wants a permit that will be 750.00 per year)
Proceed with caution