Sounds like in many cases they need a pricing mechanism to pay for the externalities. A tourist tax on hotels downtown is nice, what about a tax on tourist alchohol? And cannabis in Amsterdam, that pays for the stag party cleanup? Tickets for publically vomiting after 10pm?
But in other cases, for any reasonable tax the demand might still keep outstripping supply. I guess that leaves unreasonably high fees, or something new and much more creative.
Back in the early 90s in St. Marks (NYC) there was this head shop (among many others on that fabled stretch) with a [prominently displayed] "This Ain't Kansas Dorothy" t-shirt with a drawing of a handgun. Manhattan had this unique 'buzz', and some people actually were scared of visiting!
Now it is an open air disney land for the tourist. The buzz is gone and most of us have retreated to Brooklyn.
But in other cases, for any reasonable tax the demand might still keep outstripping supply. I guess that leaves unreasonably high fees, or something new and much more creative.