First, a hotel might well be more efficient (in terms of area used per tourist) than apartments. Second, by converting housing from long-term rentals to short-t

First, a hotel might well be more efficient (in terms of area used per tourist) than apartments. Second, by converting housing from long-term rentals to short-term rentals, supply curves are shifted, resulting in decreased prices for tourists and increased for local renters, thus a welfare transfer (consumer surplus) from locals to tourists.