Governments don't answer to short-term visitors, they answer to residents. Quite frankly, it's a good thing that Venice or Amsterdam or Barcelona are not pursuing a Benidorm-style frantic race to the bottom for tourism.

Indeed. And those residents would be greatly benefited by all the extra tax revenue and business that they recieve from tourists.

They're aware of that. Judging by the article, they also don't really care for it, because it has so many downsides.