The tourism industry in Wales says it is disappointed after plans to introduce a £1.30 a night visitor levy in Wales were given the green light.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed with 37 MSs voting for and 13 voting against the plans on Tuesday evening.

Councils will now have the option to introduce a levy on overnight stays, which will raise money which can be re-invested in tourism-related expenses – such as improving toilets, footpaths, beaches, visitor centres and activities.

Visitors, including people from Wales, will have to pay 75p per person per night for adults staying in hostels and campsites and at £1.30 per person per night for all visitors staying in other types of accommodation.

Under 18s are exempt from paying the levy when staying in hostels or campsites.

Reacting to the decision, the Wales Tourism Alliance, which is chaired by Llanrhystud businessman, Rowland Rees-Evans, said: “The tourism industry in Wales is in a fragile state already - reeling from the impact of Covid, the182 day rule on holiday lets and the cost of living crisis.

“Welsh tourism businesses are sitting on a cliff edge.

“We are therefore disappointed that the Welsh Government has approved the Visitor Levy Bill.

“A Bill which could add more than £35 per week to the price for family of four staying in Wales, at a time when cost has become a key driver in holiday choice.

“Whilst headlines call this a Tourist Tax – it is not restricted to tourists. It will add £1.30 per person per night to your accommodation bill regardless of whether you already live in Wales or you are staying overnight for work.

“The Welsh Government’s own Economic Impact Assessment predicts this Bill will result in net job losses.

“The winners will be civil servants employed to process and administer the scheme at a cost to the taxpayer, whilst the losers will be locals employed in the tourist sector.

“There is also no guarantee that local authorities will receive any of the levy once administration costs are taken into account.”

Supporting the Bill, Finance Secretary Mark Drakeford said: “Visitor levies are used successfully all over the world. They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales.

“The levy is a small contribution that will make a big difference to our communities, helping to maintain and enhance the very attractions and services that make Wales such a wonderful place to visit and live.

“By voting to back this measure, Wales is joining many other worldwide destinations which already benefit from similar levies.”

2027 is the earliest possible introduction date for the new tax.

The Bill also introduces a national statutory register for all visitor accommodation providers in Wales.

The Welsh Government says: "The register will support ongoing policy development and decision-making at all levels of government.

"It will also ensure that the public are better informed about how property is being used in their areas.