Who builds the next startup, starts a franchise chain or scouts investors to build a new machine, if you can always double your salary by serving rich foreigners?
It's sort of a Dutch disease [1]. I've seen it happening from afar to Barcelona, which was on route to become what Berlin now is in terms of IT/programming back in ~2005-2006 but the ever increasing rent prices caused by tourism put an end to that (plus the 2008-2010 crisis, of course, which hit Spain especially hard). I had expected the same thing to happen to Amsterdam, but it looks like it managed to hold up better.
Well... many of the German tourists only come to Amsterdam for smoking pot on a day or weekend trip, and the French additionally for a night in the brothels since sex work is banned in France, so all you need is a lot of cheap hotels with beds, no stuff like beach resorts or other... more high-class venues to deal with these people.
Additionally, over the last years many of the "coffee shops" (weed shops) have closed down - in the early 2000s there were 280+ in Amsterdam, now there are 166. The government wants to introduce a "weed pass" that's only for Dutch citizens to further crack down on weed tourism: https://www.tagesschau.de/ausland/corona-coffeeshops-101.htm...
Hawaii's education suffers dramatically because the work is all in tourism - this is firsthand knowledge from teachers I know over there.