Having grown up in a tourism/2nd home town I think this is probably a good thing. Keeps the place from being totally captured by local business interests.
But it would likely lead to other problems because the owner demographics are generally out of touch.
> Keeps the place from being totally captured by local business interests.
I'm pretty sure this is a fundimental design of the US system. There are things your city is allowed to do by state constitution. Things your county is allowed to do. And things only the state is allowed to do.
This is expressly to enable the people that live in that place the right to self governance.