A consultation on allowing councils in Wales to launch new tourism taxes will be launched later this year.
Welsh minister for finance and local government, Rebecca Evans, said: 'The introduction and subsequent use of such a levy would enable destinations in Wales to be enjoyed for generations to come and encourage a more sustainable approach to tourism.
'The levy would be proportionate by design and powers to raise the levy would be discretionary for local authorities.
'This would enable decisions to be taken locally, according to the needs of our communities.'
The Local Government Association has previously called for councils in England to be able to pilot a local tourism levy.