What if short term lettings were allowed but owners could only charge the same amount as their property would rent for per week (divided by days stayed) So an owner could not rent their place out per night for the amount they would normally receive per week.
I can see why people find short term letting beneficial if they can make double or more money a month. But if they couldn’t, perhaps having a long term tenant with regular income would be a better option.
Plus short term rentals at the “set” prices would allow those between homes (floods, fires, buying, selling) or those who need somewhere to stay while getting a Reno (eg new bathroom) to afford somewhere to stay temporarily. Therefore not just reliant on holiday makers/travellers.