Not necessarily. They are allowing basically any advertiser in their town (or down the road) that would appeal to a tourist. That would include any hotel, restaurant, gas station, truck stop, amusement park, museum, etc. Even a bank, possibly, because of its ATM machine. That’s probably just about all the advertisers in town who would want a billboard anyway (excluding maybe car dealers, etc.). So I don’t think it’s that bad an ordinance. But get with the city and confirm exactly which advertisers in town (and out of town) that would be excluded.
I did more research and drove around that city over the weekend. It has a ton of billboards and advertisers are: restaurants, attorneys, retail shops, hospitals, plumbing company, and everything else you can think of.
Ask the city. Either they have a liberal use of the concept of “directional” or the signs you saw are “grandfathered” and not subject to the current ordinance.