Report: Montréal Seasonal Short-Term Rental Ban Risks Millions in Tourism Revenue

Why It Matters

The revenue loss threatens Montreal’s ability to capitalize on marquee global events and could depress local businesses and employment. Adjusting the STR policy would protect tourism earnings and keep housing costs stable.

Key Takeaways

• 26,000 night shortfall during 2026 events.
• $19 million visitor spending loss projected.
• Hotel rates can spike over 160% without STR supply.
• Year‑round principal‑residence hosting could close accommodation gap.
• Digital permitting would streamline host compliance.

Pulse Analysis

Montreal’s short‑term‑rental landscape mirrors a global debate where cities balance housing affordability with tourism demand. While restrictive bylaws aim to protect long‑term rentals, evidence from New York, Barcelona and Amsterdam shows that overly tight caps can backfire, limiting the flexible lodging stock that visitors increasingly prefer. The RCGT analysis quantifies this tension, revealing a 26,000‑night gap that directly erodes the city’s economic upside during two high‑profile sporting events.

The $19 million shortfall is more than a headline figure; it represents lost spending on restaurants, retail, transportation and entertainment that fuels local employment. Hotel price spikes of over 160 % during the 2025 Grand Prix illustrate how constrained supply inflates costs, potentially deterring price‑sensitive travelers and shifting demand to competing destinations. For Montreal’s small‑business ecosystem, each missed night translates into fewer customers for neighborhood cafés and shops that rely on the spill‑over effect of visitor traffic.

Policy adjustments could unlock significant value. Allowing principal‑residence hosts to operate year‑round expands the accommodation pool without new construction, while a streamlined, fully digital permitting platform reduces administrative friction and encourages compliance. Such reforms not only safeguard tourism revenue but also provide a supplemental income stream for residents facing rising living costs, reinforcing the city’s reputation as a vibrant, inclusive destination capable of hosting world‑class events.