A local rate helps reduce vacancies.
Anyhow, there are lots of rates. For example, tour companies get discounts so they can make a profit re-selling a block of hotel rooms, etc, etc.
I took advantage a few times of 'local' rates when I was living in Santiago & would go to the beach most weekends. In the long run, the hotels made good money off my regular visits. Even if there was no official locals rate, after 1 or 2 stays a discount of 15-20% for future stays was not uncommon & often granted without requesting it. Just be nice & doors are opened for you.
