As Kelowna enters one of the busiest periods of the year for the visitor economy, we are pleased to share important milestones for our industry and community. This week, Kelowna City Council approved Tourism Kelowna's new five-year Service Agreement and supported the renewal of the Municipal and Regional District Tax (MRDT) program for another five-year term, subject to final provincial approval.
Together, these decisions provide continuity for Tourism Kelowna while reinforcing a shared commitment to Kelowna's visitor economy.
MRDT Renewal: What You Need to Know
The MRDT is the existing accommodation tax collected from visitors staying in eligible short-term accommodation. It helps fund destination marketing, visitor services, major events, and destination development, while a portion continues to support the City's affordable housing initiatives through the OAP program.
- The MRDT rate is not changing. This renewal continues the existing program and is not a new tax or tax increase.
- Council's approval is an important milestone in the renewal process; however, provincial approval is still required.
- As is currently the case, any MRDT collected from hotel, motel, and similar taxes is provided to Tourism Kelowna for destination marketing, meetings and major events, destination development, and visitor economy initiatives. Any MRDT collected through Online Accommodation Platforms (such as Airbnb or Vrbo) is kept by the City and allocated to its affordable housing initiatives.
- The renewal enables Tourism Kelowna to continue investing in programs that attract visitors, conferences, sporting events, and other economic activity, benefiting accommodation providers and the broader visitor economy.
- Over the coming weeks, Tourism Kelowna will continue engaging with accommodation providers as we prepare the provincial renewal application and seek the industry support required as part of the renewal process.
Additional information on how MRDT supports Tourism Kelowna's work is available here.
Looking Ahead
With the Service Agreement approved and the MRDT renewal process underway, Tourism Kelowna is focused on the next phase of engagement with industry partners, stakeholders, and the community as we advance our five-year strategic plan and priorities for the years ahead.
On July 29, Tourism Kelowna will host an accommodation sector engagement session focused on the future of our destination, Tourism Kelowna's emerging five-year strategy, and the MRDT renewal process. The session will provide an opportunity to discuss industry priorities, future opportunities, and the accommodation sector's role in supporting the provincial MRDT renewal application. While this session is focused on accommodation providers, Tourism Kelowna remains committed to engaging with members and stakeholders from across the visitor economy as we refine our strategic plan. Additional opportunities for broader industry input will be available.
We thank our members, tourism businesses, community stakeholders, Board of Directors, City Council, and the Tourism Kelowna team for their continued support and collaboration. The milestones achieved this week reflect years of partnership and collective effort and provide a strong foundation for the future. We look forward to continuing this work together as we strengthen Kelowna and the Central Okanagan as a vibrant, sustainable, year-round destination supported by a resilient visitor economy.
