[josefresco]

How does being a tourist based business mean you don't have to "provide a competitive dining experience". Sure local based businesses have to cater to local residents in order to win repeat business but that doesn't stop for tourism. People vacation in the same places each year, the businesses that do well are ones that not only cater to these visitors, but leave a lasting impression. Top business get reviewed by publications/websites and generally do better if they provide a competitive product.

Don't let the exceptions (aka tourists traps) cloud the rule which is fairly globally true no matter what sector you operate in.

Disclosure: I live and work (B2B) in a primarily tourist based economy. I talk every day with business owners who cater to tourists, locals and part-time residents. Tourist traps that do well despite shitty service are rare.