[vineyardmike]

There is a reason to have tourists in hotels beyond government control and taxation. But not everything in life has to be centered around a desire to profit.

Usage patterns and resource usage of residents and tourists are not equal. Tourists tend to need less space (since they just sleep there) and tend to be noisier (since they don't usually have a worker's schedule, and/or may be loud while vacationing). They tend to have different transit usage from locals, and they tend to travel to different parts of the city. All of this causes un-even wear on the resources and infrastructure within the city.