The Overnight Visitor Bill is set to grant mayors the power to charge a levy on people staying overnight in holiday accommodation. The measures, which will include sites such as hotels, bed and breakfasts, guest houses and holiday lets, are designed to "enable places to reinvest revenue in local priorities, support economic growth, strengthen public services, and improve the visitor experience".

The measure, first announced in November last year, was welcomed by regional leaders including London Mayor Sir Sadiq Khan and Liverpool City Region's Steve Rotheram but has been criticised by some in the tourism industry. Sir Sadiq said: "Giving mayors the powers to raise a tourist levy is great news for London.

"The extra funding will directly support London's economy, and help cement our reputation as a global tourism and business destination."

The proposals would apply only in areas led by the 13 Mayoral Strategic Authorities in England, including London, Manchester and Liverpool, and would not be imposed nationally. Each mayor would decide whether to introduce the charge and set the rate locally.

Mayor of the Liverpool City Region, Steve Rotheram, said: "Our visitor economy is worth more than £6 billion a year and supports over 55,000 local jobs.

"A modest levy is money that would stay local and be reinvested in the things that make our region stand out."

Despite being welcomed by several mayors, tourism boards have sighted concerns about the impact increased costs will have on visitor numbers.

Matthew Price, chief executive of holiday rentals company Awaze, added: "The introduction of a levy on overnight stays risks placing further pressure on consumers with already tight budgets, and by extension the communities and businesses that rely on holidaymakers for their living.

"We ask that if a levy is to be introduced that it is enforced within a standardised national framework that minimises the impact on guests, owners and the wider visitor economy in Britain."

Joss Croft, chief executive of lobby group UKinbound, said: "While we have not yet seen the detail of the legislation, UKinbound does not support further taxation on international visitors, who already contribute through one of Europe's peak levels of VAT and some of the world's highest visa and ETA (Electronic Travel Authorisation) fees and air passenger duty.

"As these powers are taken forward, the devil will be in the detail, including ensuring any levy is simple to implement, creates no additional cost burden for businesses, and that revenues are clearly reinvested into the visitor economy."