With all due respect but we are hearing that story again and again.
From the point of view of an outsider it looks pretty simple though:
With each potential tourist the demand for lodging should increase, making it more and more likely that a new commercial building will become a hotel. As that hotel will have a certain capacity, this capacity then will work against the demand for further hotels.
I am aware of the fact that demand for lodging will compete with demand for other commercial entities, but then again, the city's attraction for tourists should overcome the competition at a certain point of time.
The whole process literally could be tested in an Excel sheet before starting to code it. Setting up such an Excel sheet doesn't take a person with experiences in Excel more than a day.
This is of course only a very rough sketch but you get the picture.
It does however lead me to another point which is the weak if not completely missing information about certain game functionalities.