and encompass the largest amount of noncompliant establishments, who fall in the least demanding category of compliance.

The large hotels and large restaurants encompass the largest amount of non-compliant establishments, who fall in the least demanding category of compliance.

Explanation:

Here large hotels and large restaurants need huge amount of funding then other medium and small restaurants, need an effective partnership which is difficult to find. Probably number of times due to mutual conflicts or grievances the servicing of such hotels get interfered and their development too, still the partners resist each other, due to huge investment and assets. Thus it is understood as a non-compliant establishment, where people are less free to complain to authority and more resistant towards any problem.

answer; proximity;

fertile good for trade etc