Whatever the particulars of this bit of NIMBYism, there are legitimate reasons for people to be concerned about the retail mix in their neighborhoods. If the proportion of tourists spending money in the area goes up, then you can have souvenir shops replacing dry cleaners, or high end steak houses replacing neighborhood restaurants.
I'm not one who thinks such concerns should give residents great power to influence these things, but I don't think the concerns are crazy either. A retail mix serving local residents is different than a retail mix serving tourists and commuters.