Operators in Wales are facing a £100-a-year compulsory registration fee to have their hotels and B&Bs approved under legislative proposals put forward by the National Assembly in Cardiff.
The move, which follows two years' work by the Wales Tourist Board (WTB), will mean compulsory inspections by the tourist board. Under the proposals, the WTB will have the power to close down hotels deemed unfit to operate.
The Assembly has asked Downing Street for its own Act of Parliament to establish a statutory registration and inspection scheme to ensure "high quality throughout Wales".
The WTB scheme has been met with mixed responses from the industry.
In Monmouth, Tory MP David Davies said that there was anger among B&B owners in his constituency. "These measures are nothing more than red tape, which will close down bed-and-breakfast accommodation throughout Wales."
Janet Sides, owner of the Karden House hotel in Llandudno, Conwy, set up her business in November and sees yet another inspection fee as an unnecessary cost burden. "I think it would be excessive. We already have inspections by the RAC and the tourist board which we have to pay for," she said.
But other hoteliers, while unhappy about the extra cost, believe it could benefit the industry.
"If it helps to raise standards, it's a good idea. But at the end of the day it would be yet another layer of bureaucracy. I would pay it, but grudgingly," said Paul Davies, owner of the eight-bedroom Fairyhill hotel in Gower, Swansea.
The Assembly has still to decide whether the WTB or the 22 county councils should carry out the inspections. The British Hospitality Association is opposed to Wales going it alone for fear overseas visitors are confused. "But in the long term, something like this may come about," said a spokesman.