Kelowna’s tourism industry opened 2026 with continued strength in travel activity and visitor spending through the first quarter, with accommodation performance readjusting after the elevated benchmark set in Q1 2025, which was a result of Kelowna hosting the Montana's Brier in March 2025. Results from January through March 2026, which include strong gains in passenger volumes through Kelowna International Airport (YLW) and increased visitor spending across all three months, point to sustained traveller confidence and continued momentum for Kelowna as a four-season destination.
Hotel Performance Settles After a Strong Q1 2025 Benchmark
Following the event-driven peak in March 2025, hotel performance was down slightly year over year in the first quarter of 2026, reflecting a return to results aligned with historical first-quarter trends.
Some months in the quarter tracked close to 2025 levels; however, a softer March impacted overall performance. The results highlight the important role major events, conferences, and sports tourism play in bolstering shoulder-season visitation and early-year accommodation performance.
Hotel performance for the first quarter of 2026 reflects stable travel demand and the importance of major events in supporting shoulder-season visitation.
Short-Term Rentals Decline Amid Softer Demand
Short-term rental performance declined year-over-year in Q1, with lower demand and occupancy contributing to softer overall results.
Performance trended below 2025 across all three months, with the most significant decline occurring in March compared to last year’s event-driven peak.
The results mark a shift from 2025, where limited supply supported stronger performance, while Q1 2026 reflected softer demand and broad-based declines across key indicators.
Photo by: Darren Hull Studios
YLW Passenger Volumes Continue to Climb
Passenger volumes through Kelowna International Airport (YLW) increased year-over-year in each month of the first quarter, signalling continued strength in regional travel activity.
Sustained growth in passenger traffic highlights ongoing traveller confidence in Kelowna and the Central Okanagan as accessible year-round destinations. Increased air access continues to support business travel, leisure visitation, and regional connectivity during the winter and early spring seasons.
The consistent growth across all three months reinforces YLW’s important role as a gateway to the region and a key driver of tourism activity.
Continued growth in airport passenger volumes reflects sustained traveller confidence and reinforces Kelowna’s momentum as a year-round destination.
Visitor Spending Continues to Grow Across the Quarter
Visitor spending increased year-over-year in every month of Q1, reflecting continued visitor activity across local businesses, experiences, food and beverage, and transportation services.
Spending growth highlights the ongoing strength of Kelowna’s tourism economy and the broader impact of tourism on local businesses and community vibrancy throughout the winter and early spring months.
Visitation Trends
Preliminary January visitation data showed total trips up 12.3% and visitor nights increasing 2.9% year-over-year, while average nights per trip declined by -8.4%. This suggests more visitors travelled to Kelowna at the start of 2026, but for shorter stays overall.
While complete visitation data for the full quarter is not yet available, these early indicators reflect continued travel demand alongside evolving visitor behaviour favouring shorter trips.
Tourism Kelowna will continue tracking visitation trends as additional data becomes available and use these insights to support marketing efforts that encourage longer stays, including promoting multi-day itineraries, seasonal experiences, conferences, and major events throughout the year.
Looking Ahead
As Kelowna moves into the spring and summer travel seasons, Q1 results reinforce both the resilience and evolving nature of the region’s tourism economy. While accommodation performance normalized against a uniquely strong benchmark in early 2025, continued gains in visitor spending and air travel activity point to stable underlying demand.
The remainder of 2026 is expected to bring strong momentum through a series of major sporting events and tourism drivers that continue to strengthen Kelowna’s year-round visitor economy. This year is being recognized as the “Year of Sport” in Kelowna, with a lineup of nationally significant events expected to generate visitation, economic activity, and destination exposure across multiple seasons.
In May, Kelowna will host the Memorial Cup, bringing national attention and increased visitation to the region. Summer will see Hoopfest, Touchdown Kelowna, and the BC Summer Games, while the fall calendar includes Skate Canada International, further reinforcing Kelowna’s growing reputation as a premier host destination for major sporting events.
These events, alongside continued conferences, meetings, and seasonal travel demand, will play an important role in supporting shoulder-season visitation, strengthening economic resilience, and advancing Tourism Kelowna’s long-term strategic focus on fostering sustainable, balanced tourism growth as a vibrant four-season destination.
Data Notes & Methodology
Data in this report is drawn from Tourism Kelowna’s Tourism Industry Indicators for Q1 2026 and reflects year-over-year comparisons with Q1 2025 unless otherwise noted. Indicators include hotel performance, short-term rental activity, passenger volumes at Kelowna International Airport, and visitor spending estimates. Complete visitation data for the first quarter is not available at this time and will be reported once the full data set is finalized.
The industry indicators reported above draw on multiple third-party data sources, which are periodically updated. The organizations providing these industry indicators may also refine their modelling methodologies over time, which may result in previously reported data being revised. The industry indicators listed above represent the best available estimate at the time of reporting.
