Nottingham City Council members are set to consider plans to introduce a nightly £2 levy on accommodation providers.
Proposed by the city's Business Improvement District (BID), the plan could bring in an extra £1.7m annually.
If agreed, the levy would be introduced through a new Accommodation BID and collected by the council from accommodation providers with a value of £35,000 and over.
The Accommodation BID would be voted for by providers in the relevant area.