Banff Moves Toward Higher Visitor Parking Rates to Fund Transit

Banff council has taken a first step toward raising visitor parking rates to help fund the growing cost of regional transit, voting in favor of a seasonal pricing structure that would charge nine dollars an hour during peak months and seven dollars in the off season. The bylaw itself will not be approved until the full 2026 budget process is complete.

Transit Funding Drives the Proposal

Administration reported that each one dollar increase to visitor parking rates generates about 1.1 million dollars in annual revenue. This funding is central to covering Banff’s contribution to Roam Transit, which continues to scale with ridership, fleet expansion, and higher operating costs. Administration said that without changes to parking revenue, the town will face a shortfall in the mobility budget.

The town also confirmed a key metric that has shaped the debate. Each paid parking stall in the visitor zone currently brings in roughly $12,000 per year. That level of revenue helps the town offset both mobility costs and seasonal visitor impacts that would otherwise fall to the limited property tax base.

Councillor concerns centered on how much of that revenue should be drawn from visitors and how much should be driven by pricing decisions within the parking program itself.

Debate Over the Stepped Structure

The stepped rate model sets seven dollars an hour between November 1 and April 30 and nine dollars an hour between May 1 and October 31. Supporters argued that higher summer rates better reflect peak demand, congestion, and the cost of providing transit during the busiest months.

Some councillors questioned whether the two-tiered structure was the right approach. One concern was that seasonal pricing could create confusion for residents and visitors or result in unintended pressure on residential streets. Others raised the issue of affordability for people in nearby communities who must drive to Banff for work or appointments and who do not receive the same three-hour free parking window available to Banff residents.

Opposing viewpoints also focused on the cumulative effect of mobility charges and the possibility that high parking prices could discourage regional visitors. Councillors skeptical of the nine-dollar rate pointed out that seven dollars an hour is already a significant fee for families or low income visitors and questioned whether further increases were necessary to meet transit funding goals.

Despite the split, council voted in favor of the stepped structure, with four councillors in support and two opposed.

Placeholder Status and the Road to Budget Approval

Following the vote, Mayor DiManno reiterated that the decision was directional only. She noted that Fees and Charges Bylaws are not finalized before budget talks, and that council can revisit the numbers once the financial plan is presented.

“We are not approving Fees and Charges today,” she said. “This is a placeholder.”

The stepped rates will be brought back as part of the 2026 service review and budget deliberations, where council will weigh visitor parking revenue alongside transit needs, inflationary pressures, and Banff’s long term goal of reducing town center vehicle volumes. The mayor said that the purpose of the placeholder is to ensure administration can model the budget with current assumptions while allowing council to refine the policy later.

Public Reaction Highlights Deep Divisions

A Bow Valley Insider poll conducted earlier this month suggests residents are divided on the path forward. Of the 269 respondents, 50.19 percent said they did not support raising the visitor parking rate to nine dollars an hour. The written comments showed wide variation, from requests to push rates even higher to blunt rejections of the proposal.

Some respondents argued that visitors should bear more of the financial burden of parking and transit. Others said that raising the rate will not deter tourism but will make everyday visits more difficult for local residents. A number of people urged Banff and Canmore to create a reciprocal agreement for three hours free parking to reduce the cost for regional users. Several respondents expressed concern that increased parking rates could push vehicles deeper into residential neighborhoods.

The comments also revealed differing views on how transit should be funded. Some residents supported higher parking fees as a tool to encourage behavior change, reduce congestion, and support environmental goals. Others said Roam Transit should cover its own expenses or receive more support from higher levels of government rather than relying on local parking revenue.

Next Steps

Administration will include the stepped rates in the draft bylaw and present them during service review. The final decision will be made during budget adoption, after council reviews updated transit costs, new projections for parking revenue, and the broader financial picture for 2026.

For now, the nine-dollar proposal remains a directional decision. The mayor concluded the discussion by emphasizing that the coming weeks of budget deliberations will determine whether the stepped approach remains or whether council alters the rates again before the bylaw is formally adopted.