Niche For Directory Site

He there. I was thinking about creating a local directory site.
I belong to a small city from India, where population is around 1 million and only around 0.5 million live in urban area.

I was wondering how do I choose the niche for my local directory site. Our city is famous for hotels and natural beauty like lakes so I tried using the city name+hotels and it has got decent amount of searches, but the thing is market looks competitive and there are already 2 sites covering all 5 stars and 3 stars hotels.

I am a bit confused after seeing that, except the hotel keyword none other industry keyword+city has even reasonable searches like around 1000 searches.

I am a bit confused how should I proceed.

One idea I have is maybe I should just start a directory focused on all business instead on one niche.
This way I would start with one industry like hotels and as I get some market I would be in a position to even contact business from entirely different business like boutique and sell them listings.

Reason I want to do this is so that I don't limit no. of clients. Do you think Its not the right way?
Let me know what you guys think about my scenario and how should I proceed?