tourist hotspots often need a lot of service workers, who have to live somewhere too. Not to mention that higher rents/decreasing total stock in one part of a city can create more competition for other parts, raising prices everywhere to some extent.
And I truly expect the market to find an equilibrium such that those service workers will exist, whether through transportation, higher wages, people who highly value the location, etc.
Certainly without those service workers, it won't be much of a tourist attraction.
No, it'll rely on exploitation of workers. That's what's happening in Dublin -- they're exporting the English language students as in Ireland you can work (legally, many work more) 20 hours a week on a student visa and the English schools count. Then they're stuffed into rooms with five others somewhat nearby. It all relies on exploitation on the desperate.
