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"clogged up side streets" is NIMY talk for "I don't want to spend an extra 40 seconds driving around the pedestrian zone to get to my destination".
Banff is a tiny resort town that literally only exists today because of tourism and skiing. If you are upset by your town making accommodations to visitors (it's sole source of income) then you picked the wrong place to live. But I wouldn't expect the residents of Banff to understand that the world doesn't revolve around them.
This is a bit surprising because it's already in place. Usually, push-back is because humans are naturally resistant to change and people can't envision the benefits as easily as the drawbacks.
some residents expressed concern about cars and trucks clogging up side streets.
Maybe these concerns needed to be addressed, possibly by traffic calming the areas around the pedestrian zone? However, my money is that the "clogged up side streets" won't get any better.