The “modest charge”, which would be decided by mayors or local leaders if it was “right for their area”, would apply to visitors’ overnight trips at accommodation providers such as hotels, holiday lets, bed and breakfasts and guesthouses.
Money raised could help “fund local projects that improve communities and enhance tourists’ experiences, [which] could potentially help attract more visitors” without involvement from central government.
The proposals suggest that emergency accommodation, homeless shelters and registered Gypsy and Traveller sites used as primary residences would be exempt.
Mayors would also have the power to apply other local exemptions where appropriate, so they can “tailor the levy to their local economy”.
The MHCLG said research shows that “reasonable fees” could have a “minimal impact on visitor numbers”, adding that England gets around 130 million overnight visits each year.
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A consultation on the implementation of an overnight stay levy will be open until 18 February, giving stakeholders the opportunity to provide input on how the levy would work.
The MHCLG said the move was part of its “mission to devolve power and give those who know their areas best control over how money is spent in their communities”.
Steve Reed, Secretary of State for Housing, Communities and Local Government, said: “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
