The UK Government has insisted that a proposed tourism tax in Wales will not affect the number of people going on holiday to the country.
Welsh Secretary Jo Stevens said cities in the UK and abroad had a similar levy in place and had not seen an impact.
The Welsh Government is proposing to allow councils to charge £1.25 per night in a tourism tax from 2027, that would affect guests staying in hotels, bed and breakfasts and self-catered accommodation.
Councils would have to opt in to the scheme once the Senedd makes it legal.
The Welsh Association of Visitor Attractions (Wava) represents more than 100 tourist attractions across Wales said it could impact visitor numbers at a time when they have not yet returned to pre-Covid visitor levels.
Ms Stevens said: “The Welsh Government has introduced a Bill in the Senedd which will give local authorities in Wales the choice to introduce a levy on overnight stays in visitor accommodation.
“And it will be for individual councils to decide whether they will introduce a small charge paid by people staying overnight in commercially-let accommodation in Wales to help support a thriving tourism industry.”
She added: “More than 40 countries and holiday destinations around the world have introduced a form of visitor levy, including Greece, Amsterdam, Barcelona and California and many of us have paid the levy while abroad without noticing.
“The money will help support a long-term, thriving, tourism industry in Wales. I am confident that the Welsh Government will work with businesses and tourists alike to get this right.”
Farnham and Bordon MP Gregory Stafford said he was concerned that “some communities are going to be hit harder than others”.
A study on the potential economic impact of the tax by Cardiff Business School and the Welsh Government found that introduction of the levy could lead to a between 250 and 730 full-time equivalent jobs being list.
The brunt would mainly be borne by hotels and food outlets, the report said.
The Wava recommended its members close for the day on Tuesday in protest.
Tourist attractions that are against the introduction of the tax include the Grade-II funicular cliff railway in Aberystwyth.
A final decision may not be made until next year.
Shadow Welsh secretary Mims Davies said: “Labour’s new tourism tax has merely just created attraction closures and strikes, from the zoo in Ynys Mon to the cliff railway in Aberystwyth.
“The Welsh Government proposal will put more jobs in jeopardy, hotels rooms left empty and will simply send Welsh families across the border on to flights for their trips, treats and holidays.
“Does she really agree with her colleagues in Cardiff Bay that the potential price of 700 tourism jobs and the loss of tourism to Wales together with £40 million of revenue, is a price worth paying?”
Ms Stevens replied: “I’m afraid I don’t recognise any of those figures. In Manchester a similar scheme has been introduced, been highly successful and raised £2.8 million in just one year. She should be more ambitious for Wales.”
