Those low margin businesses stay low margin, but with higher prices to reflect their higher costs. I don't know of any city in the world that doesn't have a hairdresser, even if it's expensive (and in that case it's proportionate to the rent).
Think ski resort towns full of million dollar winter dachas that ban poor people housing, ending up full of vacationing millionaires who are wondering why the four-star steakhouse is now only open three days a week. (It's because nobody working there can afford to live in town. And because the vacationers are, for some reason, unwilling to man the grill. Or pay $120 for a steak.)
That's surprising. I see $120 steaks on the menu in Las Vegas restaurants. Why not at the ski resort?
> million dollar winter dachas
Perhaps because the alternative to a $120 restaurant steak is buying nice groceries and cooking at the dacha?
Dunno, but if you've figured out why, you should get in touch with the guys in this article.
https://www.outsideonline.com/culture/essays-culture/how-to-...
That's, I think, the heart of these economic dislocation problems. The destination is fine, but the transition is painful.