frazam

Yep, the bulk of expenses will go to the reception. I suggest calling up friends or family who owns a large swath of land they can let you use. A huge backyard, or anywhere you can set up. Hire a part-time caterer (a mom who caters part-time for example) and have your bridesmaids and groomsmen do DIY decorations

A tricky situation indeed. It's your wedding, you decide who the MOH should be. If the other gets hurt, if she is really your friend, talk to her one on one and explain the situation. As for the invites, I think it's better to send out invites. It's better to have to spend a little more than to have ill will breed among family and friends (which in some cases may last forever). The trick is, if someone unexpected decides to attend you can tell them that booking is full (not your fault, just so happens that tourists go there too), and if they want to attend you can help them find a place to stay, but that is all you can help with... but that's just my suggestion. In short, do what you want to do, but be mindful of burning bridges in the process.