That's one way to make NYC even less affordable and friendly to tourists on a budget. I've met some very interesting and friendly people in 'short-term apartments'. Mostly foreign students/travelers on vacation, people moving to NYC for work and using it as temporary housing until they find a real place, or just regular Americans visiting another city on a budget. They make it seem like these places are unclean or un…
But that is a valid concern I suppose -- does NYC benefit from tourists on a budget? If it doesn't then it might make sense to keep them out so tourists "not on a budget" can have more space, visit more often, and consequently spend more money.
I can see how tourists on a budget would not be welcome in many cities. Some places rely on selling overpriced services and items to tourists and rely on tourists coming in and just throwing money around. So making legislation to accommodate certain visitors, but discourage others, kind of makes sense.