In all fairness - that works when the location is in an area with sparse other options that don't also cost, like central London. The article suggests the location itself is not beset by such competition, it's more that the free parking which is available then makes residents life a misery (I assume the answer may well be a load of yellow lines). Also, the picture shows a small thesis of notices - never a good sign about the locations intentions, including a notice about how to appeal! That's a bad sign, literally, when you have that in front of a customer. I would bet good money that they get people who are charged even after spending the required amount, or that the hotel staff are not fully aware of the parking policies and create confusion as well.
Hotel's car park, Hotel can do what they like and I can't imagine it will make a penny of difference to their trade as its always heaving anyway, we go for lunch regularly and if you ain't there at 12 when they open you are waiting for a table!
The problem has arisen purely because, in their wisdom, someone (I assume the LDNPA) have decided to build a path from Newby Bridge to Lakeside up the side of Windermere rather ignoring the fact that to use said path people will want to park somewhere and whilst there are other options (and pubs/Hotels) in Newby Bridge they are on the opposite side of the A590, hence why the Swan's car park was becoming over run and people who would spend money in the Hotel couldn't park there.
There is a perfectly good public car park in Lakeside along with more facilities but that would mean people driving further.
I suspect most of the people causing the problems are not hotel customers but people travelling into the area for a nose around and a walk.
Exactly, its a lovely Hotel only ruined by the visitors!