The council has revived a plan to charge a $400 fee on holiday accommodation after their first attempt last year was dumped in the face of backlash over the timing of the financial hit in the middle of pandemic lockdowns.

The planned fee - which has been defended as not excessive - is included in the city's 2022-23 budget which will be voted on at Monday's additional council meeting.

But even if the budget is adopted, a specific law would still have to be developed to cover the new fee which the council has flagged would give the public more opportunity to have a say.

"As part of any local law change it would be subject to community consultation," the council says in response to public submissions on the proposed budget.

One public submission questioned how much it would cost to administer and enforce the charge, estimating that if there was about 100 short stay rentals in Warrnambool it would generate $40,000 in fees.

The council said the administration of the program would be absorbed within the current resourcing levels.

"The onus will be put back onto the property owner to register the property and there is a potential fine if they choose not to register," it said.

In response to questions about what additional services holiday homeowners would receive as a result of paying an extra fee, the council said the funds would be used to contribute and enhance the city's tourist facilities.

"The registration fee is an opportunity to contribute to our visitor economy towards the cost of providing Visitor Information Centres, events and festivals, Flagstaff Hill Maritime Village, Lighthouse Theatre, Art Gallery, destination marketing and regional tourism activities," it said.

The council also pointed to other infrastructure and natural assets used by visitors such as the airport, public toilets, aquatics centre, public bins, playgrounds and coastal parks.

In response to another question, the council said research indicated the average per night rate in Warrnambool was $200. "And at an estimated 40 per cent occupancy rate this would yield $29,200 annually, which suggests the fee proposed by council would not be considered an excessive amount," the council says.

The council said the $400 fee was in line with the actions of other municipalities to address the inequality between registered visitor accommodation providers such as motels and hotels and visitor accommodation provided through newer platforms such as AirBnB and Stayz.

It said motels and hotels were charged a commercial rate while short-term accommodation providers paid a residential rate.

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