Airbnb urges policy changes to short-term rental bylaw as Montreal prepares for Grand Prix

As warmer weather approaches in Montreal, so do flocks of tourists. But Airbnb says the city could face significant tourism revenue losses if it does not loosen its short-term rental regulations.

The restrictions were introduced last March under former mayor Valérie Plante’s administration to curb what the city described as a “scourge” of illegal listings.

The company is calling for changes ahead of one of Montreal’s largest tourism draws, the Formula 1 Grand Prix weekend.

“We are asking the City of Montréal to update its short-term rental regulations by giving residents the flexibility to host in their principal residence year-round, supported by a simpler and more efficient permitting system,” said Louis-Martin Leclerc, policy manager at Airbnb.

“The current bylaw is limiting Montreal’s ability to welcome visitors during the peak summer season and undermining its ambition to remain a world-class destination during two of its biggest tourism moments. We warned early on that this approach would restrict accommodation capacity and hurt the local economy, and independent data now confirms that impact.”

Airbnb estimates the city could be losing about $19 million during major upcoming events, including the Formula 1 Grand Prix in May and the World Cycling Championships in September. An internal Airbnb survey suggests 54 per cent of Quebec hosts turned to short-term rentals to offset the rising cost of living.

More than a dozen short-term rental hosts attended a Montreal city council meeting Monday evening to advocate for a reversal of the city’s current seasonal restrictions. Current bylaws limit hosting in most residential neighbourhoods between June 10 and September 10.

The company is asking the city to end the seasonal ban to support a four-season tourism economy.

“In the midst of a housing crisis, we need a responsible approach that protects our housing supply while leaving citizens room for maneuver,” said Joanna Kanga, Montreal spokesperson. “We made promises to Montrealer’s, and we intend to keep them.”

Pressure to tighten regulations intensified following a deadly March 2023 fire in Old Montreal that killed seven people, six of whom were staying in Airbnb units.

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