Visitors to Wales will have to pay up to an extra £1.25 a night to fund local services when a new ‘tourism tax’ comes into force.

The new Visitor Accommodation bill proposes giving local authorities the power to introduce a visitor levy - a small charge paid by people staying overnight in visitor accommodation.

The bill - introduced in the Senedd on Monday, 25 November - “will raise additional funds for local authorities to support the long-term sustainability of our tourism industry,” the Welsh Government said.

Confirming the introduction of the new Bill, Finance Secretary Mark Drakeford said the levy would be set at 75p per person per night for people staying in hostels and on campsite pitches, and at £1.25 per person per night for those staying in all other accommodation types.

The plan will also include instigating a national register of all those providing visitor accommodation in Wales to make sure the levy can be collected.

Local authorities will decide if they want to introduce a levy in their area, based on what is best for their communities.

It is estimated the earliest this could happen is 2027 after a local authority has consulted their community.

In September, Duncan Hall, Ceredigion County Council’s Corporate Lead Officer for Finance and Procurement told a meeting that the county would “benefit” from such a levy.

Mr Drakeford said: “We know tourism makes an important contribution to the Welsh economy and to Welsh life.

“We want to ensure its long-term sustainability.

“That’s why we believe it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience.

“Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.

“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.”

During Senedd sessions earlier this year, opposition members warned that the tax could “make people think twice” about holidaying in Wales, which would have a “significant impact on tourism and hospitality businesses.”

Councillor Andrew Morgan OBE, Welsh Local Government Association Leader, said: "This Bill will give councils the option to introduce a visitor levy on overnight stays.

“It’s a way to raise extra funds to support local services and improve amenities that benefit both visitors and the community.”