Issue Statement

Commercial short-term rentals have expanded rapidly across Alberta. While occasional home sharing can support tourism and local incomes, the growth of investor-driven, whole-home short-term rentals has created significant unintended consequences. In many cases, residential properties are operating year-round as de facto hotels without meeting equivalent standards for taxation, safety, zoning, insurance, or employment.

The absence of a clear and consistent provincial framework has contributed to reduced long-term housing supply, upward pressure on housing costs, neighbourhood disruption, and an uneven playing field for compliant accommodation providers. Without action, these impacts will continue to undermine housing affordability, municipal revenues, and community stability.

Background

The Alberta Hotel and Lodging Association (AHLA) represents nearly 700 hotels across the province, accounting for more than 80 percent of Alberta’s hotel guest rooms. Most hotels are small- and medium-sized, locally owned Alberta businesses¹. Hotels play a critical role in Alberta’s visitor economy and serve broader community needs beyond tourism.

Hotels across urban and rural Alberta provide essential infrastructure by housing workers in energy, agriculture, construction, and resource sectors; hosting sports teams, tournaments, conferences, and events; supporting community organizations and agricultural societies; and providing emergency shelter for evacuees and first responders during wildfires, floods, and other disasters.

Hotels are purpose-built, professionally staffed, and appropriately insured to manage high guest volumes. They operate under strict zoning, health and safety, fire, accessibility, employment, and insurance requirements. These obligations ensure public safety and service quality but also represent significant operating and capital costs.

By contrast, the short-term rental market has shifted increasingly toward commercial, investor-driven activity. Entire homes and condominiums are being removed from the long-term housing supply and operated as short-term accommodations within residential neighbourhoods. This shift departs from the original home-sharing model and contributes directly to housing shortages and affordability pressures.

Evidence from Alberta demonstrates that commercial short-term rentals are concentrated among a small number of high-earning operators, with whole-home listings generating the majority of revenue². Alberta’s short-term rental market has grown at a rate that outpaces most other provinces, making the province increasingly attractive to large-scale operators in the absence of regulation.

Unregulated commercial short-term rentals also create community and fiscal impacts. High guest turnover contributes to noise, property damage, and neighbourhood instability. Residential properties used for commercial purposes often lack appropriate insurance coverage, increasing risk for property owners, neighbours, and municipalities. From a fiscal perspective, commercial accommodation activity occurring within residential properties erodes municipal tax bases and creates assessment inequities, as hotels are taxed on commercial revenue while short-term rentals are typically assessed at residential rates.

These dynamics discourage hotel investment, reduce employment opportunities, and weaken a sector that is essential to tourism growth, workforce housing, and emergency response capacity.

To address these concerns, the Southeast Alberta Chamber of Commerce recommends a more measured approach that uses more cost-effective methods to preserve the housing supply, promote fair competition, and protect neighbourhoods. Clear provincial leadership will help balance tourism with housing needs, support local businesses, and ensure Alberta’s accommodation sector remains resilient, safe, and sustainable

The Southeast Alberta Chamber of Commerce recommends that the Government of Alberta establish a clear, province-wide regulatory framework for short-term rentals that distinguishes casual home sharing from commercial operations. Specifically, the Chamber recommends that the Government of Alberta:

1. Limit commercial short-term rentals to an operator’s principal residence, with clearly defined and narrow exceptions
2. Establish consistent provincial standards to support municipal enforcement and reduce regulatory fragmentation for short-term rental activity and assessment fairness
3. Require registration or licensing of short-term rentals to improve transparency, compliance, and data collection

[1] Alberta Hotel & Lodging Association Position on Regulation of Commercial Short-Term Rentals

[2] AHLA Short-Term Rental Regulations Press Release