First, Fogo, and all of NFLD are special places. The is a very interesting book on the history and architecture of Tilting on Fogo.
That said, if you dig a bit below the surface the local acceptance of the Inn is not universal. Yes, the principle has gone out of her way to hire locals at many levels including furniture builders, artist, craftspeople, as well as service folks. The flip side is that while her intention was to creat a local economy such locals didn't have to follow the age old tradition on The Rock of young people leaving. The net result however is mixed. Because of the influx of tourists, who view Fogo as cheap, the price of everything that locals need to survive has risen, especially housing, forcing the young to move. (not just due to the Inn however!)
I have a bit of insight on the Inn equation, (and Zita Cobb's creation of the artist studios that are scatter around the island, (The studios are IMHO really the kind of stimulant the island needed rather than than the Inn) because I know several of the principals ' and many relatives if the principal. There are a number of interesting articles about the changes to Fogo, in national publications like the Globe and Mail, The National Post, the NYTs. W-5 (a Canadian rough Eq of 60 minutes did a piece on Fogo and the impact of the changes which can be downloaded).
It will be interesting to see if Zita's vision work to save Fogo, or simply changes it to yet another tourist attraction of Faux culture, like Williamsburg, or the worse alterntive becoming a cheap attraction closer to Coney island. The latter not likely since Fogo is fundamentally very hard to gt there. Get to the island' then drive a couple hundred KM to Gander, another couple hundred to Farewell, then the ferry and you a there. (All on really small, lousy roads...and the ferry is old, slow and rustic. $700/night for the Inn may attract a certain clientele once for the novelty, but I don't think it is sustainable. Time will tell.
Icarus