A Bill that would allow councils to introduce a levy on overnight stays has been introduced in Wales this week.
The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill would see guests charged 75p per night at campsites or in hostels and £1.25p per night for stays in other accommodation.
The Welsh Government has estimated that up to £33m could be generated a year if all local authorities chose to introduce the levy.
It is estimated the earliest councils could do so would be 2027, following a consultation with their community.
The Bill would also see the first register of visitor accommodation in Wales set up, which the Government said would support national and local policy.
Finance secretary Mark Drakeford said: ‘Money raised through a levy would be retained by local authorities and re-invested back into their local areas to support local, sustainable tourism.
‘It’s a small contribution that could make a big difference.’
Welsh Local Government Association leader Andrew Morgan said the group looked forward to seeing the draft legislation, which would ‘mark an important step for Wales’ tourism and local economies’.