B.C. Premier David Eby wants to see more hotels developed now that the province has introduced new legislation restricting short-term accommodation rentals.

“We do expect that this will lead hotel chains and others to look at investing in additional hotel space in B.C., purpose-built accommodation for tourists,” Eby told reporters on the same day that his government tabled the STR legislation.

It remains to be seen how hotel developers will respond to Eby’s wish. Many hotels are just now returning to occupancy levels and room rates experienced before the COVID-19 pandemic.

Eby’s government has drawn widespread praised for its move. Federal Finance Minister Chrystia Freeland applauded the new B.C. legislation and said Ottawa is examining how it can turn more STRs into long-term rental housing.

And, Surrey, B.C., Mayor Brenda Locke wants her city to curb STRs in conjunction with the provincial crackdown.

Nathan Rotman, Airbnb’s Canadian leaders, maintains that STRs are best regulated at the local level and they do not raise long-term rental rates or hamper long-term supply.