I used to own malta.com. I earned virtually no money off the local market - it all came from affiliates via car hire and hotel bookings, and foreign adverts. If I was living those years again I wouldn't even try to cater for the people actually in the geolocation (not worth the time and staff) I'd just have information about the place and make money from people outside the area coming into the area. That also had natural traffic so not much work was needed. I guess it would depend on the strength of your geodomain and traffic flow as well as the type of location - eg sheffield is going to be harder to monetise than london.
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