Tourism sucks and the suck percolates through the entire local economy and everybody who has to participate in it (i.e. everyone who lives there). Even if you don't sell grossly overpriced goods or services to the tourists you make your living off of those that do. The non-repetitive nature of transactions means shady people get rewarded shady business practices and everyone develops this world view in which everyone else is a lying scumbag who will screw you for a quick gain until proven otherwise. Of course many people bury their head in the sand from a young age and convince themselves that wherever they live really is special (protip: it's really not). Drugs are rampant in whatever the off season is. People get all bent out of shape over "branding" issues (e.g. the color you paint your house, what kind of business you run, etc, etc) because your local "brand" is what attracts tourists and money. I could go on and on and on about specific downsides to having an economy dependent on tourism.
By trying to curtail tourism I think these cities are doing the right thing in the long term even if they could make a few dollars in the short term by selling out. This isn't a pro business/anti-business issue. It's a "what kind of business are we ok with" issue. Tourism unconstrained poisons local society the way a chemical plant will poison local waterways if left unchecked.
Also, FWIW all the negative predictions about cost of living in this article are correct in my observation.