We are not in a vacation rental market so we don't get much tourism here. 

STR for busy seasons and tourism demand driver times (like the Balloon Fiesta you mentioned), but doing MTR leases during slower times. 

Cabo is the number one destination for tourism in Mexico (cancun/riviera maya might bring more people because of the greater amount of hotels but Cabo is a more prestigious destination) .

Cities with a strong tech industry, such as Seattle, San Francisco, and Denver, can offer consistent demand for rental properties due to well-paying jobs.If you into Airbnb/ STR markets with a strong tourism industry, like Miami and Las Vegas, can provide short-term rental income. 

I would say if you buy a STR in a tourist area where the economy is driven by tourism then there is a good chance you’ll be fine.  

I know Covid probably didn’t help, but Gatlinburg tourism has ridden the waves of economic ups and downs in a stable way.

Tourism looks to be doing really well where I am. 

Punta Cana does offer the advantage of not having to pay taxes, but keep in mind it receives less tourism compared to Mexico.In Tulum, the market is becoming competitive, especially in standard studio, 1 & 2 bedrooms.

You'll notice how many hotels are around airports.Those there for actually town tourism will probably want something more central and peaceful and walkable and close to the action. 

Huge supply growth, huge anticipation of inbound migration that I think, frankly, is overly optimistic), and rising costs, due in part to climate change, do not bode well for these areas.