Lawmakers in Norway have approved a new tax allowing municipalities to impose a 3 percent tax on overnight stays in 'tourism-affected areas'.

The law allows local governments to impose the tax at their discretion. Funds raised by the tax will be used to improve tourism infrastructure projects that benefit both visitors and locals.

Municipalities will have to prove that their facilities are inadequate and have their plans approved by the government before they can spend the funds.

Norway's Trade and Industry Minister Cecilie Myrseth said on social media that her government had reached a 'historic agreement' to introduce a tourism tax 'in line with the rest of Europe'