A tourism tax will not be introduced in Pembrokeshire until at least the next council term in May 2027, it has been announced.
Councils may be able to charge £1.25 per person per night from 2027 under Welsh government plans, with officials previously estimating it could be in place from April of that year.
Pembrokeshire council said this would “provide some certainty for the industry in the wake of second homes legislation and tax changes”.
The Welsh Government said local authorities would be given the power to decide whether the visitor levy was right for their area, as “local authorities know their communities best”.
For areas which choose to introduce the charge, guests at hotels, B&Bs and self-catered accommodation would pay the proposed visitor levy.
A lower rate of 75p would be charged for hostels and campsites.
It was previously said the money raised would help fund services in tourism hotspots.
Pembrokeshire council’s deputy leader Paul Miller said tourism was an “important part” of the county’s economy.
Conservative Senedd member Paul Davies said: “Tourism is a huge part of the Pembrokeshire economy. Many local people work in the industry or know someone who does.
“Protecting the sustainability of the sector for years to come is key and I believe operators across Pembrokeshire will breathe a sigh of relief at the council’s decision not to implement this levy.”
He said he worried the tax would be implemented by future council administrations.
