Montreal's Seasonal Airbnb Ban Could Cost It $19 Million in Tourist Spending

Montreal could lose $19 million in tourism revenue during its biggest events of the year—not because fewer people want to visit, but because of where they can't stay.

With the Formula 1 Grand Prix (now scheduled for May) and the Cycling World Championships on the horizon, the city's strict seasonal short-term rental restrictions could leave thousands of visitors without accommodation options, pushing them to other cities entirely.

A report commissioned by Airbnb warns of serious economic losses and raises the question: Have Montreal's STR rules gone too far?

Upcoming Events and Montreal’s The $19 Million Loss 

Airbnb recently released a study estimating that Montreal's seasonal ban could result in a $19 million loss in visitor spending during the 2026 Grand Prix and Cycling Championships alone.

Major events draw massive crowds. But with reduced inventory of short-term rentals, hotels absorb all the demand and prices shoot up, leaving visitors with limited affordable options. That leads to fewer visitors, shorter trips, and less money flowing into local restaurants, shops, and attractions.

And Canada's biggest tourism-driving event—the Grand Prix—is usually in June. But it was moved to May, starting in 2026, which falls outside Montreal's permitted summer rental window.

Montreal's Short-Term Rental Regulations Explained

In March 2025, Montreal implemented some of the strictest short-term rental laws in North America. Here's what hosts and visitors need to know.

The Montreal Seasonal Ban

Rentals of 31 days or less are now only permitted from June 10 to September 10 in residential areas. Outside that window, only long-term rentals or hotels are allowed. Before 2026, that window worked for the Grand Prix. Not anymore.

Principal Residence Requirement

Only primary residences can be rented short-term—and only during that summer window. Investment properties in residential zones are effectively shut out of the STR market.

Permit Requirements

Hosts must navigate a multi-layer approval process:

• CITQ registration – A provincial certificate with a registration number from Quebec's tourism industry corporation
• Municipal host permit – A city-issued permit costing $300
• Occupancy permit – Required for non-primary residences in authorized commercial zones

What happens if you don't comply?

Montreal isn't messing around. The city has doubled its inspector team.

Fines can reach:

• $50,000 for hosts operating illegally
• $100,000 for platforms like Airbnb with illegal listings

And residents can report suspected violations simply by calling 311 or using an online form.

The Debate: Housing Crisis vs. Tourism Revenue

So, is everyone on the same page on Montreal's Airbnb rules?

The City's Position

Mayor Valérie Plante's administration argues the ban is necessary to crack down on illegal rentals and free up housing stock. An estimated 4,000 units have been removed from the long-term market for short-term use, worsening the city's housing crisis.

Of the roughly 2,140 registration numbers issued by the CITQ, officials believe half of all short-term rentals are already operating illegally.

Provincial Concerns

Quebec Tourism Minister Caroline Proulx warns the ban could backfire, bringing back the "Far Web" —an unregulated, illegal rental market operating outside platform controls. She argues the move could damage Montreal's reputation and even endanger tourists.

Industry Response

• Hotels and housing advocates support the move, saying it protects rental housing
• Airbnb argues it unfairly penalizes responsible hosts and local economies
• Meanwhile, municipal opposition claims enforcement is still not enough

Final Thoughts & What This Means for STR Hosts

STR bans seemed like they would never happen in tourism-focused cities. But that's changing. In 2026, every host, no matter where they're investing, needs an exit strategy in case of a surprise ban.

Montreal is a case study in how housing crises are reshaping short-term rental laws—and the economic trade-offs cities are willing to make. The seasonal ban is a high-stakes experiment. It may ease housing pressure—but at a cost measured in millions of tourism dollars and the city's reputation as a world-class event destination.

Past cities that have tried bans and later reversed them after seeing no effect prove that banning STRs doesn't always resolve the housing crisis. For Montreal, hosts can only hope the STR restriction is reversed later.

And beyond the housing debate, STRs—Airbnb and Vrbo specifically—are becoming a core part of the travel planning experience, especially for younger guests who want unique experiences and options that work with their budgets. With Airbnb growing rapidly, soon it'll be difficult to sustain local tourism economies without bringing OTAs into the mix.

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