I do not think they regulate this strictly on other industries like food service, or even medical.Sounds like the mayor or city planner or someone "important" had a bad stay at a STR somewhere.

You and your partners are going to do nothing but put food on the table for your GC, Agent & PM.

I'm sure y'all already knew that!

Now some food for thought.

Look around for some pet food spill that into another big pan so they have something to eat. 

Communicate expectations upfront—because once they start double-parking or treating the place like a frat house, it’s game over.Cameras, Cameras EverywhereYou’d think adults wouldn’t steal each other’s food, right?

These communities cater to renters who value suburban living but can’t or won’t buy a home.

Plus, I get to experience all kind of great people, food and culture in the meanwhile. 

To me STR and hotel caters to different groups of travelers and so despite competition as long as the travel demand of Hawaii remains (as you pointed out is a robust assumption) I think both will continue to do well.  

Have a garden for food or flowers.