Unexpected consequence of condo conversion boom

Over at The Housing Bubble, a story on a company that is killing its plan to build condo towers parenthetically notes that the city where the project was to be built "has lost thousands of hotel rooms over the last few years as developers razed buildings to cash in on the condo boom"...I think that this city (Clearwater Beach) will suffer a double whammy as the loss of those hotel rooms is going to give their tax revenue in the future a significant haircut. Future visitors will be staying in other towns, and the city will lose the revenue from other tourist related business such as restaurants...