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The problem is that this leads to a raised prices due to foreigners' purchase power, and this pushes locals away. This is very problematic politically as very few people end up profiting from tourists.

There’s so many thing wrong with this comment I don’t know where to start. How about we start with this. If you consider $10/day even a remotely decent salary then I don’t know what to say.

Could you elaborate how that might be the case? Is the argument that the $10 will somehow trickle down into the local economy?

How is it going somewhere else? If course it's being spent in the economy. Essentially it's an export of services.

For large amounts I'm sure some is saved but most workers whether local or foreign bringing in overseas dollars are contributing far more to overall improvement of the economy than someone working at a retail store earning the exact same amount while shuffling around domestic dollars.

I believe he is saying this is inflating the fiat money due to new money throw in the economy not being in sync with the local production, causing the Cantillon effect[1]

[1]: https://mises.org/library/money-inflation-and-business-cycle...