tbf I think most locals would agree with the idea of keeping the tourists sequestered in a space that isn't bothering them

That's a partial fallacy inasmuch as people who search out more authentic places tend to do a different kind of tourism, although that can still be annoying, even destructive, for the locals.

OTOH there's something to it, just like gentrification of urban areas. It's a slow process, and when it's complete some people seek out more "authentic" places again.