It won't change its name. The reason they are still in business is that they are so dirt cheap. They are known in the area and avoided by almost everybody except for these "tours" and the uninformed.

> But perhaps worse that that, a hotel behaving like this, and not being slapped down hard by the Tunisian authorities, will damage the entire Tunisian tourism industry

It's already damaged. The tourism industry is a joke and the receipts are laughable comparing to other countries (Morocco or Egypt). Just a week before protesters were able to blockade a main road in the capital and cause a gridlock for several hours lasting until late-night.