No, I did not suggest the solution you are implying my comment meant. What I am saying is that these PLATFORMS are not the right way to handle the supply of short-term rentals, as they incentivise the home-owners to take them off the market for long-term rentals. I would be perfectly fine with short-term rentals which were not the converted living units. We have to think differently here. But if the push comes to shove, actually restrictions would work here in favour of the long-term rentals, because being, as you said yourself, a supply-demand problem, it would raise the supply of long-term rentals and reduce the prices. Just as it was happening before AirBnB. Its just that we have to be moral enough to recognise that the basic human right of a local in a tourist location to live affordably is set higher than the luxury problem of the so-called digital natives, namely, booking a short-term rental in a city center (so they can produce yet another piece of "content"). Not to mention that a platform which does not generate profit should not even be allowed to exist.

Most of the case it is because more building is simply not possible.

And anyway as long as there is no restrictions on the day-rental, investor will choose the option in their economical self-interest. Restriction must apply to force long term rentals.