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If you go back and read again the email and the official announcement, this was not a decision made by the ACO alone. It was clearly made hand in hand with the local prefecture, who clearly viewed the possibility of a Covid spike from the influx of visitors as being more unwelcome than the effect on the local economy. My guess is that the ACO were told that they could have the 5000 and no more. And that, with the resources needed to 'police' it plus the agonies of sorting out who the 5000 would be, caused them to bite the bullet and can it.
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