Bad idea - Moisture will eventually ruin your paper and increase the chances of mildew forming when it starts peeling.

Work on your ventilation issues first, then instead of paper consider a really good quality tile job - floor to ceiling.

Bepsf is right - take care of the ventilation issue first!
I bought a really high end bathroom wallpaper (more a kind of a plastic film rather than a paper) and it hang there for four years until I got rid of it. No mildew as there was some kind of a mildew killer the seller offered me that is mixed with the glue. As you probably will need a roll or two (floor to ceiling) and will hang it yourself - you can splurge. Mine cost 90$ per roll and I will pay it in a New York minute again. If you go to a specialized wallpaper store, they have a sea of catalogs - and you can pick some fresh ideas.
Good luck!

I totally agree with Mona Ives. Love wallpaper in powder rooms/avoid wallpaper in bathrooms.

There are wonderful stencils today. You might be able to mimic the look

I emailed our wallpaper installer, and he had this to say:

It would depend to a large degree as to the type of wallcovering. A paper that repels water would be best. A foil would be good . mold will form if moisture is able to get behind the paper. there are some clear sealers that could be put on a paper to seal it. They would harden the look of the paper but would help in preventing the moisture from getting under the wallcovering. It would also be good to caulk around the outside edges of the paper to again help to prevent moisture from getting under the paper.

I have wallpaper in my guest bath (that is a small room with a shower) going strong for 15 years. No problem. I am taking it out because it's time for a new design, but it held up fine. I also added the mildew killer to the paste before I hung it. No problems what so ever.

DON'T DO IT! Nuf' said. My story. Paid a guy $175 to hang a sturdy (i.e., could last a nuclear winter) grasscloth thinking "My doesn't this look fine"/ this will hold up. I started seeing bubbling, then a small curl in one corner then the wallpaper paste substrate started to yellow... fast... then a bigger curl then... MOLD that was caught between the paper and the wall. I called the paper hanger guy back to see if he could fix it and he said I needed both a window and a strong ventilation fan (working together after showers were taken). My walls sweated like a sumo wrestler trying to do ballet.

Lesson learned $400 in wallpaper, $175 in hanging service, 3 full weekends to remove the paper and the hardened paste and then wash the walls down in a bleach mixture and then dry that sucker out. Then another almost $300 to have a sheetrock guy re-skim my walls, sand them down and then we painted it white to match the ridiculously beautiful toilet, basketweave floor and shower carrera marble tiles. Now my third bath is a beautiful storage/junk area because we don't bathe in it and guest who stay overnight use my son's bath. I was so traumatized and I feel you will be too if you venture down this path.

Ventilate - first
Pretty paper that will hold up in a shower - second
Not having to flush money down a drain - priceless.

Good luck.

Grass cloth doesn't belong in a shower area, that was your main problem. That is not bathroom wall paper. You can use it in a powder room without a shower. My sister had it in her powder room over 20 years. You have to do the research to find what is used in shower areas, there are specific designs and papers just for that. My wallpaper lasted 15 years without a single problem because I used what was recommended.

There are tons of tiles out there with the look of wallpaper now, even bright bold ones like this! It's a great solution for the look without the maintenance.

You need ventilation even with no wallpaper, humidity is bad for your house and for your health. Then, put wallpaper for sure !

I agree about the tiles, they are wonderful.

who makes these tiles?