Failte Ireland officials have expressed concern that tighter restrictions on short-term rentals will result in some loss of accommodation supply in rural areas with few hotels.
Vermont tourism officials have similar concerns. (See related article.)
A solution might be for Airbnb (etc.) landlords to raise their rates enough to cover the cost of compliance with regulations. Tourists are used to paying hotel/inn/BnB prices; short-term rentals don't need to be cheaper, just competitive.