Oxford City Council is exploring the introduction of an Accommodation Business Improvement District (ABID), often referred to as a "tourist tax", on overnight stays.
The proposed scheme would add a surcharge to hotel and college room rates for guests in Oxford.
City officials estimate that such a levy could raise up to £10m for additional projects, with a £2 nightly charge potentially funding city improvements.
Funds generated by the ABID would be controlled by a dedicated board, independent of Oxford City Council or other government bodies.
Similar visitor charges are already in place in other UK cities, including Manchester and Liverpool.