All visitors would be charged 75p a night to stay in campsites and hostels and £1.25 for all other accommodation including hotels, B&Bs and holiday lets.
A bill giving local authorities the option to introduce the levy was introduced yesterday by the Welsh government's finance secretary, Mark Drakeford, though it will not come into force until 2027 at the earliest.
If all Welsh local authorities choose to introduce a levy, it is estimated it could generate up to £33m a year. It is expected that popular areas, such as Gwynedd in the north, Pembrokeshire in the south-west and Cardiff, may be keen to bring in the levy.
A statutory registration scheme for all accommodation providers is expected to start operating in 2026 to support the collection and administration. Local authorities who take part will have to produce an annual report setting out how much money is raised and how it is used.
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