Mark Drakeford resisted calls to exclude under-18s from the Welsh Government’s plans for a tourism tax from 2027.

The finance secretary told the Senedd’s finance committee that exempting children from the levy as in some other European countries would lead to a “significant fall” in the tax take.

He said: “I see that you have heard from a range of voices who argue that particular groups ought to be excluded from the levy.

“This is a broad-based tax with a low charge – if you narrow the base, the only way you can sustain the take from the tax is to put the charge up.”

Prof Drakeford said taking under-16s out of the £1.25-a-night levy would see the estimated £33m revenue fall to £21m, “eroding the chances that the levy will be of any use.”

He stressed: “If the committee wants to argue for excluding children from the levy, you are arguing for a higher charge on the people who are left – you can’t have both.”

He defended the visitor levy bill after a report found the levy could lead to between 250 and 730 job losses and cost the Welsh economy £16m to £47m a year.

The finance secretary was questioned about the economic impact assessment by Calvin Jones, a professor at Cardiff University, as he gave evidence on 12 February.

He said: “Professor Jones’ report deals with a set of complex considerations.

“It has, inevitably, to make a series of assumptions and deal with a series of uncertainties.

“It assumes, for example, that all 22 local authorities have adopted the levy from day one.”

Rejecting suggestions the report undermines the case for a levy, Prof Drakeford said some witnesses exclusively referred to figures for a worst-case scenario.

The visitor levy bill will be followed by a second bill on licensing accommodation.