I guess that as more and more tourists started coming to Krumlov, the locals figured out that they could make money from them. So they turned every doorway into a shop window for souvenirs or hats.
Unfortunately, in its greed the town completely forget about its own inhabitants. And since the city isn’t interested in maintaining normal live, they were then forced to move to the city’s outskirts. There’s no butcher here, no sweet shop, haberdashery, hardware store. Where is barber or the hair salon?? The electronics store is a kilometer outside town. There is one single buffet, a cafeteria, a sweetshop, and they’re going to shut those down? Why? In order to sell more hats?