In my view, tourism based economy vastly diminishes sovereignty, since it must attract and accommodate as many external patrons as possible.
In practical terms this means changing internal laws and customs to satisfy the capriciousness of any foreign nationals (and their governments) who a nation wants as patrons.
Well, what does Italy export? Cars, clothes, olive oil? I’m sure that’s a tad simplistic, but they aren’t exporting oil or natural gas.
As for changing laws to appease a foreigner, if a person can’t go there and respect their laws and they get rolled up, that’s on them.