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, November 25 - “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 with their community.

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.”

The Welsh Tourism Alliance said it is disappointed with Monday's announcement.

Rowland Rees-Evans, Chair of the Alliance, said the levy is not the right solution.

"We feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards," he said.

"What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived 'added value'.

"We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales."

Since the tax was first proposed, MS for Brecon and Radnorshire James Evans has raised the concerns of local businesses - many of whom fear that the tax could drive tourism away.

"Sadly, many of the tourism businesses I’ve spoken to in my constituency are all resigned to this damaging tourism tax being introduced. We are yet to see just how much of a detrimental effect this will have on their businesses," Mr Evans said this week.

"Most short stays in Wales are made by the Welsh public – so this is essentially a tax [on] the Welsh people who holiday within their own country,” he added.