Maybe it’s a well known fact, but I didn’t personally know this before I started working at a municipality, but there are entire departments who do nothing but plan. The best description of what they do, is that they play really complicated real world sim city, and at some level they draw “residential area”, “industry”, “commercial area”, “hotel” on a map, and those plans determine what we’re allowed to build on those locations.
If they plan correctly, there is a finite amount of hotels or holiday homes available in an area, and once those are full, the town or city can house no more tourists. This means that you could actually regulate how many people could physically visit London at any given time by limiting the amount of hotels and the amount of rooms a hotel was allowed to house with city planning.
Private rentals and popular apps to handle it, broke this system. At least until regulation catches up.