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This is simply not true. Look at Santa Barbara for example: high tourism, high prices and locals are forced to distant outskirts. Local spending doesn’t increase because prices simply go up and locals shop at cheaper places outside of tourist hub. I doubt their wages are any higher either.
Why do you assume that local businesses generating more revenue doesn't contribute to local incomes? It does, almost by definition. In a housing supply restricted market, tourism can contribute to higher housing costs, but that can be fixed by removing constraints on housing supply, like zoning. And even when this effect is present, its effect on quality of life is counter-acted by the positive effect of tourism spen…
Local businesses do not always generate income from tourists. For example, some of the destinations complaining about overtourism are upset at cruise ships, where the tourists do all their eating, drinking, and sleeping on the boat, and they only walk through the city during the day without spending any significant amount of money.