Earlier quoted context omitted.
That solves one market problem (AirBnB has no level playing field with existing hotels.) That does not solve the other large problem; most residents do not want to live in a hotel district with other tourists, and especially not as hallway or floor mates. And residents do not want new hotel builds or conversions competing with apartments. With traditional hotels this is solved with permits and zoning, but AirBnB is u…
You just said the answer to the other problem: require a permit or business license to be an AirBnB host. Alternatively, "the market" offers annoyed neighbors another option: move.
Saying moving is an option trivializes how difficult moving can be, and is about as helpful as saying, "If you don't like the current president, why don't you just move to another country?"