Leaders from across the West Country have welcomed plans for a so-called tourist tax on overnight visitors to the region.
The levy would be charged on guests staying in hotels, B&Bs, guest houses and holiday rentals, and would be used for funding local projects.
The tax is expected to be included in Chancellor Rachel Reeves' Budget speech on Wednesday.
West of England Mayor Helen Godwin said the tax had "the potential" to support and enhance the sector’s businesses and workers, including with better transport.
“These new powers are a real vote of confidence in our region taking more control of our future," she said.
Council leaders, including deputy mayor Councillor Kevin Guy in Bath and North East Somerset (BANES) and Bristol leaders past and present, have long campaigned for the ability to raise revenue through a small charge on overnight stays.
Bath, a city so historic that UNESCO listed it twice, was among the New York Times’ 52 must-visit places in the world this year, while Bristol was named by Lonely Planet as one of the world’s best places to visit in 2026.
Bath welcomes tens of thousands of visitors during the three-week Christmas Market period alone.
"It will help making tourism work for everyone," said Mr Guy. "We want to sustain the quality of the visitor experience while protecting the wellbeing of our communities, the levy should allow a fairer system, one that recognises the costs as well as the benefits of tourism and allows us to reinvest directly into the services and infrastructure that make great visits possible.”
Councillor Mike Bell, leader of North Somerset Council, has previously been sceptical of the tax and warned over "price disadvantages" compared to Europe.
But he said on Wednesday that leaders must make sure the tourism industry "does not place an additional burden" on already stretched local government finances.
"If a tourism tax enables us to reinvest the income in services that make the area better for both visitors and our residents then I look forward to reviewing the detailed proposals in due course," he said.
Councillor Tony Dyer, leader of Bristol City Council, said the levy was a way of strengthening the tourism industry across the West Country.
"We will work closely with businesses to get this right and make sure any revenue raised is used in ways that bring real benefits locally for residents, visitors, and the sector itself," he added.
Councillor Maggie Tyrrell, leader of South Gloucestershire Council, said the levy would give councils a "sustainable way" to support the tourism industry.
"Through reinvesting in transport and local services, we can ensure the benefits of tourism in the area are felt across all our communities," she said.
Consultation with the tourism sector locally will proceed any implementation of a levy. A national consultation is open on gov.uk until February 18 for businesses, communities, and others with an interest in the measure.
