Yeah, I can imagine it. Perhaps their experience was that people selling inferior services by trying to freeride on the name were actually hurting tourism. You appear to have assumed your conclusion.
There isn't a city in the world that doesn't have hundreds of businesses that incorporate the cities name in the business name. It's often done as a point of pride in their city by the business owner. Ever heard of the "Chicago Cubs"? How about "Portland Cement"?
I understand discussions where you realize you've taken a wrong position can be uncomfortable, so I won't bother you any more other than to say I addressed exactly your points.