She added: “A lot of people will reconsider whether they come in to Wales if they know they are going to be charged an extra holiday tax.”
In a four-year plan for the city, Cardiff council said it would “explore fiscal powers such as the tourism levy to support investment in the sector”.
Carl Kodurand, manager of the 21-bed room Lincoln House Hotel on Cathedral Road, just outside Cardiff city centre, said a £1.25 nightly levy would be “fairly small”.
“Nevertheless, I think if people are staying say for three or four nights, it all mounts up,” he said.
“The problem is how is that money going to be spent, where is that money going to be spent, and I’ve heard precious little on that subject.”
The Wales Tourism Alliance said there was “no clear commitment” that funding raised by the levy “will be dedicated to improving the visitor experience in Wales”.
“This was the Welsh government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK. Instead it has merely made Wales more expensive without any perceived added-value for our visitors.”
Peter Fox, Welsh Conservative Shadow Minister for Finance, added: “This tax is the wrong one for Wales and the wrong one for our tourism industry.
“Not only will it impose huge amounts of red tape on small businesses and add significant costs to family holidays, it will also work against its own aims by driving visitors to using more council-maintained facilities.”
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