There'll be a public consultation on whether to introduce the controversial 'tourism tax' on Anglesey.

Last September, legislation was passed allowing Welsh councils to introduce a levy for overnight visitors.

It would allow local authorities to charge as much as £1.30 per person per night in most accomodation - including hotels - and 75p a night at campsites and hostels.

Cardiff will introduce the levy next year, becoming the first part of Wales to do so - but Anglesey could follow suit after councillors agreed on Tuesday to hold a public consultation, in an effort to gauge a better understanding of local opinion.

Neighbouring Cyngor Gwynedd is also considering a similar consultation exercise with a decision due this week.

Anglesey Council leader Gary Pritchard said: "Tourism is an integral part of our economy and identity, but we also know it brings challenges that are felt very differently across our communities and seasons."

"This consultation is about listening carefully to those views - particularly from local businesses, residents and the communities most affected by visitor pressures - before any conclusions are drawn."

"No decisions have been made, and the purpose of consulting is to ensure that any future approach, if one is taken at all, is based on local evidence, local priorities and informed discussions."

A council report into the potential impact of a tourism tax suggests a number of possible benefits, including:

• Extra funding to maintain visitor facilities such as footpaths, toilets and car parks
• Supporting sustainable tourism and reducing pressure on communities and the environment
• Investment in projects that enhance the island's cultural assets and promote the Welsh language

But the report also noted the potential concerns and challenges raised by a visitor levy, such as:

• The impact on tourism businesses, especially smaller accommodation providers
• Uncertainty over how visitors may respond to the additional charge
• The need to ensure any revenue raised is transparent, additional and clearly linked to tourism benefits

Anglesey Council has stressed there's been no decision yet on whether to introduce the levy, insisting any decision in the future "would only be taken after careful consideration" of the consultation's feedback and supporting evidence.

According to one lobby group, tourism in Wales would stand to lose an estimated £359 million as a result.

The TaxPayers Alliance said the levy "risks becoming yet another tax that damages economic growth while placing further pressure on struggling businesses."

They added: "For many Welsh businesses, particularly in rural and coastal communities, tourism is a vital source of jobs and economic activity."

"Hotels, pubs, restaurants and attractions are already facing rising costs and weaker consumer confidence. Introducing yet another tax risks driving visitors elsewhere at a time when the sector needs support."

"Instead of relying on new taxes to plug holes in the public finances, the Welsh government and local authorities should focus on policies that encourage economic growth, attract visitors and make Wales a more competitive place to visit and invest."

"They should also abandon costly policies like net zero and focus on frontline services."

Christian Branch, head of economic development at Anglesey Council, said: "From an economic development perspective, it's important that we fully understand both the potential opportunities and the risks for the Island before any decisions are taken."

"The evidence on visitor levies shows that impacts can vary significantly depending on local context, visitor behaviour and how any revenue is used."

"This consultation will help us test that evidence against Anglesey's specific economy, business landscape and seasonal tourism patterns, and ensure that a wide range of voices are reflected in the analysis."

The council says details of the public consultation will be published shortly.