All the old style tourist towns with limited parking seem to be doing more than fine. I live in such a neighbourhood, with no parking minimums and paid parking. People still visit.
But that means you could have more visitors.
Now, if you are maxed out, then good, paid parking makes sense - send those tourists elsewhere.
But if more visitors = more money, and that is something the town wants, then adding more parking, and reducing fees is what the town should do.
Which is what I said: "It also encourages people to go elsewhere."
It boils down to this: When choosing paid parking make sure this is what you want, that you want people not to come.
(And I acknowledge that in certain situations it makes sense to want that.)
And I know what you are thinking: You'd rather they take the bus or whatever. But think about this: Why do they chose to drive anyway, forcing you have to encourage them not to?
Clearly there is something lacking with the bus, to the point that you have to deliberately make driving worse just to induce them to use it.
I live in Montreal, and it's the same when tourists come here. They may drive to the city, but they leave their car parked the whole time. (Side streets out of the center have some free parking. Commercial arteries and downtown core is paid)
Sure, you could have more parking for cars, but you might not have more people. And with too much parking you destroy the city you want to visit. Edmonton and Calgary have plentiful parking, and no ones goes to visit them, except as a stopping point to see the wilderness around the city.
It doesn't work like this.
Imagine a person considering visiting the town. They have a threshold of pain/effort in their mind, say V, above which they'll just go sightseeing elsewhere. Let C be the pain/effort of visiting our town by car, and B the pain/effort of visiting by bus. If C < B < V, they'll visit by car. If you can arrange to have C > B, while still keeping B < V, they'll still visit, but via a bus.
So the goal for a town is to make it so that for most interested people, B < C && B < V.
Instead, I think a good measure of parking supply for a given destination point could be the sum of available spots, weighed by their distance to the destination.
A local would take the time to research the cheapest store taking into account list price, quality, parking costs and so on. But a tourist probably won't. That's why tourist traps exist.
No wonder there are traffic problems. Lots more parking is needed.
BTW, self-driving will make this far worse for traffic, although better for the businesses. The car can just drive around while I visit the business.
And if you think more parking fixes traffic I suggest you visit Los Angeles. Or even just San Jose.
Maybe you think it is normal to pay. I don't. I have paid a few times in over 2 decades of driving a car. I can mostly remember them because I'm still angry:
I paid to park in Boston in 2001, near the courthouse. I sort of paid at a park-and-ride place for an airport, but that included a bus ride. I got parking stickers for a couple colleges. I paid the "parking fee" at the Air and Space Museum Annex in Virginia, which is really a cheating way to charge admission.
I think that's it.
The problem is that some people are willing to patronize places without free parking. If people didn't do that, we'd all have free parking.
In this case, maybe SF is trying to send you a signal: you probably shouldn’t be driving in it.
If you can’t change you strategy, then consider changing frameworks: LA historically has had extremely high parking minimums, though that does present its own challenges.
MUNI stop locations above ground are not announced or lighted, and you can't just count because the vehicle only halts if a person asks it to do so. The bus routes are confusing; I went the wrong way and ended up in a terrifying neighborhood. When things got busy, there was no way to board the cable car. Due to holiday crowds (people who might want service!) most of the system (MUNI, buses, cable cars... everything in the northern half of the city) got shut down for the evening. Later I missed a bus because it stopped on the other corner instead of at the bus stop, and that was the last one so I had to walk several miles in a rather scary city.
I suppose SF is sending a signal: you probably shouldn't go there.
But I won't walk in LA; I mean, I'll show up without a car and uber everywhere, or I'll rent a car, but you need a car to get around in LA.
But... that's the thing; In SF, it doesn't matter that the traffic is terrible, because I won't drive. In LA, you always feel how terrible the traffic is because you can't really avoid driving.
That's the thing; you need a car in LA but not in SF; I mean, sure, the transit sucks in SF, the transit might even be better in LA, but the city really isn't that big; you can walk most everywhere. In LA, that's hard. LA is big. A lot of that big is parking; LA has a big office tower, then like a city block of parking right there. It's crazy. (I once visited a friend without a car in the days before uber; We went from his place near LAX to Langers deli (that's the other reason why I need to move to new york, I love pastrami) It took us like four hours to just get there using public transit. (It was worth it. Oh my that Pastrami was good) - really from then until he moved I'd rent a car when I went.
Personally, this is one of the things I like more about SF than LA. I like walking a lot more than I like driving, and really, I think driving is a low-density transport medium; what are cars good for? cars are good for getting people to different places. When you are in low density areas, each person is going to a very different destination. In high density areas? a lot of people are going to essentially the same place, so shared vehicles, trains or the like, are a much better answer.
It's a choice. If you build your cities to be comfortable for cars, they won't be comfortable for pedestrians, and vis a vis.
I've been thinking about this lately. I mean, I live in silicon valley; essentially in dense suburbs. I want it to be much denser; I want it to be dense enough to be walkable. But my neighbors don't; Maybe that means I should move to new york? I mean, why is my opinion any more right than theirs? It's cheaper there, too. Though, I hear they get up earlier than I'd like.
I needed glasses recently, with my insurance I had a choice of 4 stores. I went to the one with free parking. (Google maps streetview is great for checking that.)
Requiring paid parking in a tourist town encourages people to visit a different town.