Our city tournament has the same problems. My first thought is to move the tournament up to the start of the season when people are fresh back into bowling and before everything else starts going. Most leagues start around the middle or end of August, so why not have city tournament at the end of September first of October. Our Junior city tournament use to be held at the time and it makes more sense because when they have it latter in the season, Late February, early March you have Nationals, State, Mens Southern, and other events. Plus many bowlers start to lose interest when spring rolls around.
It is an easy fix that makes a lot of sense.