Kelowna’s tourism industry sustained its upward trajectory through the third quarter of 2025, with strong performance across key indicators and year-over-year gains in most categories. The visitor economy continued to demonstrate resilience and balance, supported by robust accommodation performance, growing passenger volumes through Kelowna International Airport (YLW), and steady visitor spending throughout the high season and into early fall.
Kelowna’s third quarter demonstrated sustained strength across all major sectors, showing how the region's tourism economy continues to balance growth with stability.
Quarterly Hotel Results Exceed 2024
Hotel performance exceeded 2024 levels across all three months of Q3, with the strongest results recorded in August. Occupancy rose approximately 9% year-over-year, while revenue per available room (RevPAR) climbed by more than 16%, driven by consistent gains in average daily rate (ADR). The quarter’s build from July to August reflected peak-season demand, while September held above last year’s benchmarks, signalling a healthy extension of the season into early fall.
Short-Term Rentals Show Strong Gains in Occupancy
Short-term rentals continued to perform well through Q3, with occupancy up 16.2% year-over-year and average daily rate rising 1.5% compared to 2024. Reservation volumes remained essentially flat, reflecting steady traveller demand amid leaner inventory. The City of Kelowna’s alignment with provincial short-term rental legislation in April 2025 broadened eligibility across some property types; however, that has yet to translate into increased supply. Overall, short-term rentals remain a key accommodation choice for travellers.
Photo by: BC Ale Trail & Norma Ibarra
Visitor Spending Driven by Food & Beverage and Retail
Visitor spending increased approximately 6% year-over-year across Q3, peaking in August. Growth was led by food and beverage and retail, while accommodation spending also rose. Transportation spending remained stable, while spending on recreation and entertainment declined. This evolution suggests travellers are seeking more immersive and flavour-driven activities that connect them with Kelowna’s local character. Compared with 2024, visitor spending patterns highlight the region’s growing appeal as a food and lifestyle destination.
We continue to monitor visitor spending patterns closely and are using these insights to guide how and where we show up in market. As trends evolve, we are adjusting our tactical mix to ensure a balanced approach that supports all sectors, including recreation and entertainment. We’re working with partners to highlight the depth of experiences available year-round and to help strengthen visitor spending across all categories.
Food and beverage and retail spending led overall growth, reinforcing Kelowna’s reputation as a destination where flavour, creativity, and local culture drive visitor experiences.
YLW Passenger Volumes Continue to Climb
Passenger traffic through Kelowna International Airport (YLW) surpassed 2024 levels in each month of Q3, growing by more than 12% year-over-year. August marked the busiest month of the year, with growth accelerating through late summer. The increase was supported by both leisure travel and event-related visitation, including the Canadian Country Music Awards and Country Music Week, hosted in Kelowna in September. Year-to-date, YLW remains well ahead of 2024 totals, reinforcing Kelowna’s position as a key regional gateway.
Visitation Patterns Show More Trips, Shorter Stays
Preliminary July visitation data indicated a 6.5% increase in total trips and a -1.7% decrease in average nights per trip compared with the same month last year. While full Q3 visitation data is not yet available, early indicators suggest that more travellers are choosing Kelowna for shorter, high-value stays, reflecting flexible travel patterns, weekend getaways, and strong repeat visitation through the summer months.
Tourism Kelowna will continue to track these trends and shape marketing efforts that highlight the depth of experiences available here, encouraging travellers to stay longer and explore more.
Looking Ahead
As the year draws to a close, Kelowna’s tourism industry enters the winter season with continued strength and optimism. The momentum carried through summer and fall reflects a balanced visitor mix, strong air access, and sustained community collaboration. With the holiday season approaching and new winter marketing initiatives on the horizon, Tourism Kelowna and its partners remain focused on building on this year’s success and setting the stage for another year of steady, sustainable growth in 2026.
