In Brief: Montreal is facing a potential $19 million deficit in tourism revenue due to a prohibition on short-term rentals during major events in 2026.
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Montreal Risks $19 Million Tourism Loss from Short-Term Rental Ban During 2026 Events – Image Credit Unsplash
Montreal is projected to lose over $19 million in tourism revenue due to a short-term rental ban during the 2026 Formula 1 Canadian Grand Prix and UCI World Cycling Championships, with a shortage of more than 26,000 accommodation nights expected to drive hotel prices higher and limit the city’s ability to meet visitor demand.
A new analysis by Raymond Chabot Grant Thornton (RCGT) finds that Montreal’s municipal bylaw restricting short-term rentals in residential neighborhoods from June 10 to September 10 will create a deficit of more than 26,000 accommodation nights during the 2026 Formula 1 Canadian Grand Prix (May 22–24) and the UCI World Cycling Championships (September 19–27). Both events fall outside the city’s permitted rental window.
The report estimates that this shortfall could cost Montreal more than $19 million in lost economic activity, as the limitation on accommodation capacity is expected to prevent thousands of visitors from attending these events and reduce spending on local businesses, restaurants, transportation, and retail. The projected gap includes over 7,000 units needed during the Grand Prix and nearly 19,000 during the Cycling Championships, with the shortage peaking on Saturdays when demand is highest.
Hotel rates are expected to surge due to constrained supply. Data from CoStar shows that during the 2025 Formula 1 Canadian Grand Prix, average hotel rates reached about $892 on race Saturday, a 167% increase over typical high-season weekends. If the accommodation gap widens in 2026, similar or higher price increases are anticipated, potentially making it more difficult for visitors to afford trips to Montreal.
RCGT and Airbnb recommend targeted policy updates, including ending the seasonal ban for principal-residence hosts to allow year-round hosting and moving to a fully online, streamlined permitting system. Louis-Martin Leclerc, Policy Manager at Airbnb, stated that updating the rules would increase accommodation capacity, help prevent extreme price spikes, and ensure economic benefits remain in Montreal’s neighborhoods. Jean-Philippe Brosseau, partner at RCGT, noted that current regulations could lead to a shortage of accommodation during the city’s largest tourism events, as both events fall outside the authorized rental period.
RCGT’s findings indicate that Montreal’s restrictive short-term rental policies have not improved vacancy rates or reduced long-term rental prices. The city’s experience aligns with that of New York, Barcelona, and Amsterdam, where similar regulations failed to ease housing pressures and coincided with rising rents and higher hotel prices.
