I think it’s fair to say that football hooliganism is not unique to any particular place, and is a specific and unique problem

Yes, over-tourism and hooligans are disjoint problems. But if it is so cheap going to a place that you can just grab your fella drunkards and go you end up mixing them both in...weird ways.

Britain is not that rich anymore (and we aren't in 2011 anymore), however, during peak crisis (when the IMF rescued Portugal and almost had to do the same with Spain) we couldn't do much besides accepting anything that was bringing money, no matter how little. For some reason, the brits got used to to go to Algarve as "their" vaction spot, so much that this predates the tourist boom, and at this point in time they just straight up bought everything. You can't say no when your country is near bankrupt.

The 2008 financial crisis was a major turning point for this massified tourism. The "lazy southern people that don't want to work" had to accept any money that tourists could bring and accept any consequences. Partly due to this, there's this culture that tourists are immune to everything. If you think that hooligans are bad in a place with functioning cops, imagine them in a place that, at most, says "please don't do that" and lets you go, every single time. Even the Germans, which generally are strict rule followers, stop having any regard for simple laws.

That very same "lazy southern people that don't want to work" stereotype also got many people considering the northern Europeans to be entitled assholes. Not individually. There's not all that much xenophobia when dealing with individuals 1:1, but when considering them as a group of people, there's a lot of resentment. Germany, the UK and France being in crisis and facing the same problems we faced is giving some sweet sensation to a lot of people.

There's also the cultural idea that "when you're not in your town, you behave", even internally. People from Oporto have the same prejudice towards Lisbon people. "They come here and act like this is their place, chanting and whatever, twats" goes Portuguese to Portuguese, no need to add foreigners for that attitude to be a thing.

There's enough context to everything to write quite a few books. Nothing in these interactions are as simple as "people are annoyed at competition in their markets so they're pointing water guns".

the local government for approving those businesses to set themselves up on that street

There was the time period I just described where the governments could not have a say towards that + tragedy of commons. Every local government wants to have "the best behaved and richest tourists" so a race to the bottom it goes. Now it is a complete mess to fix the situation, especially since the Portuguese no longer own those places.

As a local government you can't go against the majority of your people, and the majority of people in Algarve are Brits and French. They own entire regions. Years and years of this environment cause that. Even in the Lisbon region, plenty of tourists buy properties because "wow, such nice weather, everything cheap", which they end up treating as investment because why wouldn't them?

There was this particularly damning "golden visa" scheme during the IMF days where you'd get Portuguese citizenship and a myriad of rights if you invested 250k (?) in real estate. A whole lot of people started doing investment tourism due to that and they're totally capitalizing on that.

The way I see it, there are two major classes of tourist in here. The rich fellas which bought the entire property market, with the richest of them tanking our water supplies with their golf courts and lobbying against any changes. And the bingo-card tourist which sees "50€ on Ryanair, nice! Honey, let's go to Portugal, it is a place in Spain that has some pubs just like home". You have a few other classes like the guys that actually enjoy discovering cultures and whatnot, but my personal experience tells me that there aren't all that many like that even though all of them will say that they're doing just that.

Now, none of this wall of text pointed at "firing water at people" as a solution; it just pointed a good deal of the context why other solutions are near impossible. However, in a way dissimilar to Portugal, Catalonia actually is a powerhouse. They can actually just limit the amount of people going there and succeed that way. But 1) business travellers are barely distinguishable from tourists 2) Madrid is a pain.

The whole point is that this is a very hard to solve mess. Most people don't know these details; they merely know that we have a "too many tourists; go away" attitude; they could be halfway decent and just respect it, unless they have some particular interest in the country. There's a trivial way to distinguish. We actually love to see people trying to speak Portuguese; even if they utterly fail; because this is enough to distinguish them from the 99%. This is how desperate we are for people that actually value anything in Portugal but the pictures and weather.