But when could it be introduced and what would the raised money go towards?

When could the tax come into force?

A new document has been published by the government outlining when such a tax could be introduced.

The decision on whether to introduce a local levy would be in the hands of local councils.

If passed, local authorities would launch consultations in the summer of 2025 to consider whether to introduce a fee in their area.

In 2026, the local authorities that do decide to go ahead with the fee will give notice to the public and it would then be rolled out from 2027 at the end of the notice period.

As the policy is part of a co-operation agreement between Labour and Plaid Cymru, it looks likely it would have enough support to pass.

Who would need to pay the tax?

Under the plans, people staying overnight in an area would have to pay a fee.

British domestic tourists made 10,698,000 overnight trips to Wales during 2019, according to Welsh government data.

Why are there plans to introduce a levy?

The Welsh government argues it is "fair and reasonable" to ask visitors to pay a small fee towards the wider cost of tourism, with the intention of creating a "sense of shared responsibility between residents and visitors".

It said popular holiday destinations across the globe have already introduced a levy, including Greece, Paris in France and Rome in Italy.

The Welsh Conservatives - the largest opposition party in the Senedd - has previously accused the government of "taking a sledgehammer to crack a nut".

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How much would visitors have to pay?

The exact amount of money tourists would pay is set to be decided by the Senedd with the legislation expected to be introduced by the end of next year.

The money raised would then be used by each local authority to "develop sustainable tourism" in their areas.