And how would you stop all these new houses being turned into AirBnBs? As soon as the extra supply dips the tourist price, a whole swath more tourists can afford to come and stay. Locals will remain in their cars/tents/parents' basements.
That would seem to imply that the tourist value of the place is still hugely under appreciated. That may suck for some people, but other locals will be making a killing as they exploit a new resource.