Even that's not as simple, though: if hotels all failed, they would be replaced by something else (maybe AirBnBs, maybe other things, probably a mix) that would

Even that's not as simple, though: if hotels all failed, they would be replaced by something else (maybe AirBnBs, maybe other things, probably a mix) that would generate economic activity and tax revenues. Certainly adding up to less than what's lost in hospitality taxes, but it does counteract the loss to an extent.