That would mean you can just buy 'hotelsincornwall.com' and no one will be allowed to bid for 'hotels in corwnwall'. You are now facing a different problem.
Apple is a distinct name in that industry. You can call yourself Apple and sell toddler toys without violating any trademark. You can’t call yourself “X in Y city” because it’s not distinct in that industry unless you literally are the only unique one in that city.